Notes from the recent concall:
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Company had challenging quarter due to the low demand in overseas markets, however consol. income increased by 33%, 85% increase in EBITDA and 95% increase in PAT. Growth largely driven by domestic operations.
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Steel industry demand is feeling the impact of high inflation and high interest rates, and most markets have curtailed investment in new projects.
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Domestic steel industry is expected to grow driven by infrastructure in four key areas, national highways, railways, water infrastructure and government housing.
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In November Company will inaugurate new and now completed state-of-the-art research and technology centre at manufacturing location in Odisha. This will enable the company to improve its own material and intellectual property database, expand its products and improve its technological approach to sustainable material and technology development
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Per Management, approximately 75% of the Indian steel growth is projected to come from Odisha only.
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Company is also diversifying to the non-ferrous industry, such as cement, petrochemical, copper and other industries.
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Odisha and Kandla capex in final phases of completion and Vizag capex expected to be ready by Mar’24.
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On an annual basis, Company expects stable 15% EBITDA margins at standalone level and 12% EBITDA margins at consolidated level going forward.
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Steel growth in India has been consistently over 7%-8% over the last 10 years. Company does not see any affect of any Chinese products coming in and distorting the markets.
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There is no pricing power in refractory industry. It all depends on quality of the product.
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Domestic export split pre covid was 40:60 which has now changed to 60:40.
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Company planning to develop a new plant in Odisha, for which land allocation is expected by Nov-Dec 23.
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