Summary of Concall Q3 FY 24:
*Growth Guidance *
~15-17% growth for the next 3 years (Composite 30%, Established 10-12%.)
*Composite Guidance *
~500 Cr current year, 800 Cr next year & 1500 cr 2 year down the line.
~ CNG cascade capacity to expand from 480 to 1080 nos by next year, can give 850 cr revenue after expansion
*Valu added *
~Right now-26%
~Will increase 3-4% per year.
~Can become 36% in 3 year down the line ( Ebitda margin can go to 16% by then)
*ROCE *
~Nine Month ROCE is 15.6% against 13.6% in FY 23.
~ To improve by 2% every year.
~ Can become 20% three year down the line.
*Capex *
~ Nine month Capex 144Cr (63 Maintenance, 81 Composite & IBC)
~Full year Capex to be 175 Cr ( Reduced from 200 Cr)
*Restructuring *
~ Approved- 50% disinvestment of Middle Asea for 25 million $ ( 200 Crore), to be completed in 90 days.
~ Middle Asea contributes 7.5 % (Around 350 Cr) of total consolidated revenue.
~ As 2023 numbers are better than 2022, they may do re-exercise by taking 2023 numbers for balance disinvestment of USA, South Asea.
~No desperation for selling, will sell only when they get good value.
*Non Core Asset *
~ 125 Cr NCA to become Zero by March’25.
~Sell of 26.5 Cr land & building in South region to be completed in 90 days.
~ Proceed to be used for Debt reduction.
*Debt *
~ Target to become Debt free in next 3 year
~ By March’25 debt to be reduced to 450 cr from current 800, interest cost can go down to 60-70 from current 100.
*Entry into Automobile *
~No capacity right now, may consider it after next year’s capacity expansion
*Working Capital *
~Targeting to reach 90 days in 6 months, against 112 days last year.
*Disc *- Invested & Biased
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