Concall Summary (Q3 of FY24)
Quarter Ended: December 31, 2023 (Q3 of FY24)
- Total Revenue: ₹44.85 Crores
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): ₹14.53 Crores
- EBITDA Percentage: 32%
- Profit After Tax (PAT): ₹3.35 Crores
- Cash Profit After Tax: ₹11.55 Crores
Period: 9 months ending on December 31, 23
- Total Revenue: ₹127.96 crores
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): ₹41.30 crores
- EBITDA Percentage: 32%
- Profit After Tax (PAT): ₹9.83 crores
- Cash PAT: ₹33.35 crores
CapEx Overview (Year Ended 31st December 23):
- Total CapEx for the year: 48.52 crores
- CapEx for the quarter-ended 31st December 23: 14.06 crores
- Equipment addition is based on the order book with clients.
- Average Capex of 40 to 50 crores annually expected for the upcoming years
Net Block Increase:
- Year-on-year increase in netblock: 27.94%
- Net block as of 31st December 23: 172 crores (compared to 134.7 crores in the previous year period)
Gross block Growth:
- Gross block as of 31st December 23: 284.76 crores
- Percentage increase: 22.64%
Debt and Financial Ratios (as of 31st December 23):
- Total debt: 89.52 crores
- Debt-to-equity ratio: 1.08
Receivable Cycles Improvement:
- Receivable cycles as of 31st December 23: 110 days
- Improvement: 29 days compared to the previous financial year as of 31st March 2023
Order Book (as of 1st February 2024):
- Order book value: 36 crores
- Anticipation of new orders in the coming months for continued growth
Equipment Hiring Services (Segment A):
- Revenue of 20.42 crores in Last Quater
- Revenue of 54.29 crores in Last 9 Months
- Contracts have variable durations, ranging from a few months to several years.
Steel Logistics (Warehousing and Transportation) (Segment B)
- Revenue of 20.38 crores in Last Quater
- Revenue of 60.64 crores in Last 9 Months
- Contracts in this segment involve working with public sector undertakings like SAIL (20 Crore Project) for 10 Years.
- Contract durations typically range from 4 to 7 years.
- Contracts are secured through government tenders.
EPC Business (Segment C):
- Revenue of 3.56 crores in Last Quater
- Revenue of 10.61 crores in Last 9 Months
- Anticipated tenders in the last quarter did not materialize as quickly due to a prolonged tendering process.
- Expectation of positive impact in the current quarter and subsequent quarters.
- Exploring entry into specialized EPC segment.
Capacity Expansion Projects in the Steel and Cement Sector:
- Reasons for Infra Projects:
- Equipment acquisition in recent years focused on capacity expansion projects.
- Equipment aligns with the ongoing expansion initiatives.
- Factors Driving Project Selection:
- Improved revenue mix and better pricing at selected plants.
- Long-term contracts are established with these plants.
- Effect of Subcontracting Discontinuation:
- Subcontracting work ceased in the last year.
- Resulted in a significant margin expansion across all quarters.
- Future Margins:
- Margin expansion is expected to persist with the ongoing growth in the top line.
Overall Business Growth and Future Plans:
- The company has experienced a growth rate of 20 to 25% in the past year.
- The average monthly yield is approximately 2.5%.
- Anticipating this growth trend to continue.
- Expecting additional growth with new orders in the pipeline.
- The fourth quarter is crucial for sector revenue and for growth.
- Target industries for expansion: cement, steel, and petrochemicals.
- Exploring the renewable energy sector, specifically the wind sector will be carefully evaluated but the equipment is already purchased.
- Continued focus on cement, steel, and petrochemicals expansion.
Interested and Tracking the Company
Regards,
Fawaaz.
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