summary of the bullet points from the company’s concall transcript:

Revenue and Financials:

• Q1 FY24 revenues declined by 20% due to lower sales of insoluble sulphur and correction in sales prices of sulphur and acid.
• EBITDA grew by 15% and profit after tax increased by 9% for the same period.
• Margins improved due to correction in international freight costs and reduction in sulphur prices.
• The company is debt-free and has a positive net cash position.

Industry Outlook:

• CV industry expected to grow mid- to high single digit in FY24, driven by promising monsoon and government efforts to boost infrastructure.
• Indian tyre manufacturers anticipate investing INR 5,000 crores in FY23 and FY24, driven by strong demand for radial tires in the domestic market.
• Demand weakness in Europe attributed to inventory correction and challenges faced by European tyre companies.
• OCCL’s market share expected to increase with additional orders and evolving trends in the tyre industry, including the growth of electric vehicles.

Expansion and Market Share:

• OCCL focused on expanding in geographies like North America and increasing market share in India.
• Current capacity utilization for insoluble sulphur below optimum levels, but additional orders expected next year to utilize expanded capacity.
• Demerger proposed by OCCL awaiting approval from NCLT, with next hearing scheduled for October 11, 2023.

Guidance and Demand:

• Company does not provide specific guidance on margins or volumes due to various factors affecting costs and demand.
• Demand for insoluble sulphur expected to grow between 3% to 4% on a long-term basis.

Correct, the valuation is no longer cheap. Based on the Con-call Revenue guidance is 35% for FY24 & FY25. Further, 15-20% for FY26 till FY28. A simple calculation on Multiples for what could be the Mcap in FY24 & FY25. I am considering the current MCap of 2850 Cr.

HIL Q2FY24 Concall Summary

Ammonia production cost as per May concall is around 460+30$=490$.
Benefit is around 110$.
Based on capacity per quarter if we take it is coming to 80crs profit on Ammonia but the interest cost is higher than this.
Ammonia price should go further high to become breakeven.

https://www.bseindia.com/xml-data/corpfiling/AttachLive/e220d528-9bd5-490c-82df-00d5e4a36648.pdf

ppt quarterly