Company came with flattish nos, with EBITDA growing by 20%+ and EPS by 6%
The final growth lever remains their newly commercialized tanks, which should contribute 7-8 EBITDA annually (so around 2 cr. incremental EBITDA quarterly). Concall notes below.
FY24Q2
- New tank of 19,000 kl started operating at end of September and didn’t contribute in Q2, will start contributing in Q3
- LPG: very close to finalizing throughput contract
- Dip in reported revenues is due to EPC division which works on small margins. That’s why there is no impact on EBITDA despite drop in sales
- 7% YOY growth in rental income
- Arbitration award of ~12 cr. (including interest) granted in favor of Ganesh Benzoplast (in an old case against ONGC)
I think tanks is a 12-15% kind of sales growth business. If you look at Aegis’ tanks business (much larger geographical footprint), long term growth has been around 15%.
Disclosure: Not invested (no transactions in last-30 days)
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