As per Con-call Q3 FY 24
Operational Performance:
- The company has been improving its product mix by expanding its footprint into value- added, high-margin products.
- Successfully closed a QIP round of Rs. 200 crores, with support from investors like Bank of America and Morgan Stanley.
- The positive momentum on the demand side is attributed to the robust economy, rising capex, and the China plus strategy on the export side.
- Maintained export momentum, with exports accounting for roughly 25% of its sales in value terms.
- New plant in Sikandarabad, meant for hydraulic tubing, is expected to boost exports.
- Ventured into defense and aerospace, with production expected to begin in the first quarter of the next financial year.
- The Government of India’s decision to replace all diesel buses in the urban renewal mission program with electrical vehicles is expected to create a huge demand for the company’s tube products.
Future Outlook: - The company expects to be on track for the guidance given for FY26.
- Anticipates a top-line growth of 4,000 plus for FY25 and 4,500 plus for FY26.
Concerns: - Geopolitical conditions and changing demand dynamics in the defense sector pose uncertainties for the company’s future revenue and export market share.
Other Points: - The company has invested in measures to offset millions of kg of CO2 emissions during the project lifetime.
- Taken steps to reduce power costs by investing in solar power.
- Made significant inroads in the road safety sector by adopting European design and reducing the cost of crash barriers.
- Completed almost one-third of the order for the high-speed rail corridor and expects more orders from L&T and the dedicated freight corridor.
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