Q3- Concall summary held today.
Super commentary by manegement.
Here it goes –
1-No impact on margin if raw material price increase or decrease. It is due to some contracts with customers.
2-Growth driven by railway, renewable energy and power sector.
3-Order book increased by 25-30% QoQ.
Q3 Order book is 898cr. Good order book visibility ahead.
4- Capex for Aurangabad facility coming live in H1FY25.
5-42000 metric tons to 50000 metric tons after capex in FY25.
6-Pitti Castings amalgamation will improve margin significantly and EBITDA will be increased. 70% sales of Pitti Castings is derived from procurement of Pitti Eng. So common revenue will consolidate and margin will improve.
7- Tax will be lower in FY25(after amalgamation) due to unabsorbed losses in Pitti Castings. Unabsorbed loss is 80cr. It will help in high EPS.
8-Debt under control.
9- After Amalgamation sales of value added products related to machining will increase. It will increase margin significantly.
10- Peak utilisation will be reached in FY26 . After that further capex will be planned depending on market requirement.
11- This year got 13.09cr incentive income.
32.42 cr more incentive income expected in Q4 FY24 for Aurangabad facility.
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