BEPL AGM 2024 – quick notes
- Unsecured Loans and Advances: No clear answer as to whom the loans (222 Cr + 76 Cr) are given. Management said they are safe and easily callable. As on date of AGM 100 Cr. is received back. Balance will be called back soon for CAPEX. Hopefully Sep. 24 data should reflect this.
- Averse to taking debt due to difficult times seen in the past. All expansion will be done through internal accruals only.
- CAPEX: Cost approx. Rs.500 cr for capacity expansion from 75 KTPA to 200 KTPA. Still awaiting detailed reports from TOYO which is likely to come in another 2-3 months as its delayed.
- Was considering port based expansion in the past which results in cost savings but CAPEX is approx. 1200-1500 Cr. so shelved the plans. No plans to take debt.
- Total market size is 325 KTPA of which 175 KTPA is imported. China consumption is 50 lacs Tons. No risk of oversupply when all new capacities come online (Styrenix and Supreme).
- Presently share of value added products is 25% and 75% is commodity. Specialty grade is mostly for automobiles and home appliances (50%).
- Woks on cost + pricing so margins are more or less stable. No major growth expected in next 2 years until new capacity comes online. Presently operating at > 100% capacity.
- COVID year profits were exceptional (approx. 300 Cr.) due to price hikes. Unlikely to happen again. Reasonable to expect ~180cr. Profits per year at present capacity.
- Mr. Jayesh Bhansali was not present as he was traveling abroad.
- Number of shareholders ~ 122,000
I may have misunderstood / misinterpreted something. Kindly do your own due diligence.
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