- capex
-
defence building work is going on and commercial production in q1 next financial year in which forging would be done for this only they made subsidiary company
-
here they will make artilery and aerospace material
- profitability
- have increased accross the board and bottomline has grown faster than topline due to margin expansion
- industry tailwinds -
- expect good demand from solar rooftop projects as framing is required
- management -
-
guidance stays intact
-
fy24 -3500+, fy25 4000+ , fy26 -4500+
-
margin this year 8.5% , next year 9%+ , fy26 9.5% plus the defence margins
- business details
-
business now bearing fruits of the seeds sown in the past
-
mix changing towards high VAP
-
exports are 25% , even in difficult times of export we have nbeen able to grow exports and maintain last years rate
-
additional capacity in gujarat is just on time that we can make up value added products
-
secundarabad new hydraulic tubing plant will also cater majorly to exports will give good boost to export
-
-
auto tube will have improved demand as and when more and more EVs comes
-
7000 tonnes of fabrication done in railways
-
auto sector - entering constriuction machinery by making hydraulic tubes of 15 mm thickness thus replacing seamless tubes , one of the few plants in world
-
conducting RND continously
-
new software is helping
-
upgrading and changing tube mills to make different sizes to cater to export demand
-
company has made significant in roads in road safety sector by adopting european desiogn but reducing cost of ncrash barrriers
-
segment wise revenue
-
structural pipes - 50%
-
precision (erw, cdw) precision tube -25%
-
structure division 10%
-
forging -15%
-
-
defence can give 350-400 crs revenue but only after rampup from h1 of fy25 this 350-400crs will only come from fy26
-
INTO FORGING
-
only 2-3% of revenue
-
margin profile in defence should be 20% + ebitda
-
-
measures to reduce power cost
-
30-40% of requirement is coming from 30 mw plant
-
agreement to get at 4rs per unit by signing 6 MW in up
-
-
railways -
-
new notification of building FOB(foot over bridges)
-
getting into stainless steel FOBs
-
will get good portion of fabrication if LNT or any big players bag the contract
-
-
revenue split with en user industries
-
infrastructure 60% many thing structure tubing , solar structure, railways. electrical towers , telephone towers
-
margins in railways and electrical line margin 9-10%
-
structure tube - 3-4%
-
-
forging 15% 12-15%
-
auto - 25% 12-15% , hydraulic tubes, precision tubes
-
-
major defence business will come in fy26
-
in bridges and railway business they get the material from 70% of their suppliers so the supplier fincance the WC
- one time events
-
fund raise of 200 crs via QIP
-
red sea-
- only 75% exports throgh red sea and out of this 70% is FOB value so not effected so effect is minimal
Subscribe To Our Free Newsletter |