Posting the Q3 Concall Notes –
- EBITDA Margins stood at 19.5% and PAT margins at 10%
- Increase in volume @ 21% YoY and 5% for Nine months (Signaling Demand recovery)
- Dahej Plant’s Trail run has began and since the EBITDA margins of the products from new plant is 20%+ new leg of margin expansion will come from here
- Industrial segment accounted for more than 87% of the revenue out of which export accounted for 62% total revenue
- Incorporated subsidiary in US making it area for future growth
- Downward revision in the guidence of total plant capacity → Pakhajan can do 550 to 600 crores of revenue and Vapi can do 650 Crores (earlier guided for 700 to 750) at optimum utilisation (90%)
this downward revision is just on account of correction in RM prices - The prices of RM are correcting i.e. Inching Upward, but not at the speed it dropped
- The company is seeing spark already but too early to comment weather this will be fire or fizzle down
- current capacity is utilization 85%
- Will complete trial, will take govt approvals and then only can start taking orders as client will need everything before placing orders. Will get govt certification within 4 – 8 Weeks
- Peak EBITDA will be 120 crores from Vapi facility
- Depreciation is on lower side as some asset have got fully depreciated
- Peak debt will be 500 crores including WC
- Markets will rebound overall within next 2 quarters as the demand comes back in European as well as Asian country
- Vapi is completely saturated @18% EBITDA margins any new improvement will come from pakhajan only
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