Some highlights from Earnings Call Q2FY25
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Volumes grew +11% YoY
- Revenue grew +6% as realisation declined -5% YoY due to reduction in end prices
- Monsoon in South India were exceptionally disruptive this season and hence the demand was weak in the past few months – slower construction, infra build out
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EBITDA grew +18% YoY
- Better metric to track company is EBITDA growth and EBITDA/ton since realisations/revenue can fluctuate based on steel price; however Hariom can capture adequate EBITDA/tonn regardless of commodity price volatility
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WC down to 58 days in H1FY25
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OCF for H2 was +50 crores and 35 crores of debt was paid down
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Capital Raise
- Enabling resolution of QIP; Focus will be on specialized steel products + Geography expansion
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Distribution
- Have direct connect with 800 dealers in south india; don’t work with distributors
- Work with fabricators but not directly, instead connect with local dealers
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Guidance
- Co has ~270kt sales target for FY25
- In H1, 114kt volume done, so ~156kt remaining for H2
- FY25 revenue target = 1,600 cr
- FY26 revenue target = 2,500 cr reaffirmed; this hasn’t been changed despite weaker than expected Q2
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