Q3FY24:
• The volume growth of the consolidated business (in terms of metric tons) stood at 2,92,057.31 Mt. tons in 9M FY24 compared to 2,72,088.50 Mt. tons in 9M FY23. (Growth of 11.3%)
• THE COMPANY IS GUIDING TO ACHIEVE A VOLUME OF 5 LACS MT IN FY24, COMPARED TO 4.24 LACS MT IN THE PREVIOUS YEAR WHICH IS AT A TARGETED GROWTH OF ~18%
Confident of achieving volume guidance. (5-10k here and there)
Targeting volumes of 7lac,8lac or even million MT in the coming year.
• Price dropped for bitumen in 9mFY23 – Prices have stabilized now and have started to improve – expecting both price and volume growth now.
• Have started executing BPCL and HPCL orders.
• Not looking to set up the company as a shipping business – Shipping business is to support bitumen business in India, so that dependency on 3rd party is eradicated and also to save costs (40 to 50cr cost savings)
• Can now support 5lac volume through own vessels
• Key challenge is procuring the product and making it available always – Demand is not a problem, can do 1.5x of what we are currently doing even today, getting the material is the real challenge – Delays in loading happen, many times we’re dry in our port storage facilities because we’ve run out of product and ship is yet to arrive – So strengthening our fleet to improve on these factors.
Delays in loading happen because there are many traders who want to trade, so it takes 7 to 10 days sometimes to put my vessel. So, it’s a port challenge, not a sales challenge.
So, having more vessels can help in alleviating this challenge. Our goal is to have 1lac MT of product per month in India
• PSU production capacity for bitumen is 5-5.5 million tons – Existing demand is 9-10 million tons – projected to grow to 12-14 million tons in the next 3-4 years – There is no additional capacity planned as such, demand has to be met through imports.
• 30-40% manufactured product, rest trading
• With the addition of new vessels, EBITDA per MT should go to 3600-3700 from 3400 currently (which was 2200 five years ago)
• Value added in manufactured products – 5 to 6%
• Bitumen realization was 47000 last year, 40000 currently. Prices have already started to move up.
• During Monsoons we give our vessels to different areas for 3rd party – rest of the quarters we use for our own requirements – 90 to 95% sales is for internal requirements.
• Plans to expand geographically into new countries: We are not able to fulfill our own demand in India, so focusing only on India currently. Once Indian market is saturated, then we can look to expand geographically.
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