Key points from Q4 FY 24 call
Business Overview
• Revenue up by 7% YoY ; EBITDA growth of 50% YoY to 346 cr
• Sold 1.96 tonnes of DI pipes in the quarter. Closed FY 24 with 7.5 lakh tonnes of volumes
• Plant shutdown of 15 days in the quarter. One of the reasons for slight drop in EBITDA per tonne
• Robust order book of 6 lakh tonne in hand (4500 crore in value). Revenue visibility of 9 to 10 months.
Capex Plans
• Spent 390 crore out of the planned 650 crore. New capacity will be operational by Oct 2025. Will take overall capacity to 9 lakh tonnes per annum.
• Further, received approval from Board for capacity expansion of Srikalahasti unit. Will increase capacity from 5 lakh to 6.5 lakh tonnes
• Recd approval to acquire 500 acres of land in Odisha, for setting up new DI pipe plant. More details on value of acquisition, to follow in subsequent quarters
• Debt repayment process will not get impacted, due to these capex plans. Will finalize land acquisition once comfortable with balance sheet
Future Outlook & guidance
• With new capacity of 9 lakh tonne being operational, likely to conclude FY 25 with 8.5 lakh tonnes of production. likely to achieve 9 lakh tonne in FY 26. And 1 million tonnes by FY 27
• Seeing very buoyant demand in India – not enough capacity currently to meet demand… Mentioned in opening remarks ‘Company is at the right place at the right time.’
Disc: Tracking position
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