Ddev Plastiks Industries Limited (DPIL) – Q1 FY25 Earnings Call Key Takeaways
Financial Performance (Q1 FY25)
- Revenue: INR 625 crore, a 6% YoY increase.
- EBITDA: INR 65 crore (including other income), 10% margin.
- PAT: INR 42 crore, 11% YoY growth.
Operational Performance
- Volume Growth: Achieved 46,585 MT in sales volume, 18.5% YoY growth.
- Capacity Utilization: Currently at 80%, with an installed capacity of 233,400 MTPA as of June 2024. Targeting 95% utilization by FY26.
- Product Mix Shift: Shifting capacity from lower-margin products to higher-margin offerings.
- Exports: Accounted for 24% of Q1 FY25 revenue.
- Key Clients: Apar, Havells, KEC, KEI, Paramount, and Polycab contribute to ~22% of total revenue.
Future Outlook
- Revenue Target: INR 5,000 crore by FY2030.
- Growth Drivers: Strong demand in wire and cable industry, transition to HFFR cables, and US market expansion.
- Capex Plans: INR 300 crore investment over next three years.
- Volume Growth Guidance: Expects 180,000 to 185,000 MT in volume for FY25.
- EBITDA Margin Guidance: Expects 15-15.5% EBITDA margin for FY25.
Concerns
- Pressure on Margins: Increased shipping costs and decline in raw material prices.
- Competition: Faces competition from international players.
- Backward Integration: Key customers backward integrating by manufacturing their own plastic compounds.
Other Points
- DPIL became net debt-free in Q4 FY24.
- Actively engaging with potential investors but no concrete developments regarding a stake sale disclosed.
- Machine generated highlights, exercise diligence.
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