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INOX India Limited Q1 FY25 Earnings Call Summary
Conference Call Overview • Date: August 9, 2024 • Key Attendees: • CEO Deepak Acharya • CFO Pavan Logar • Moderator: Darshan Mankad (Adfactors PR) • Communication: Addressed to BSE and NSE, signed by Company Secretary Kamlesh Shinde. • Transcript available on the company's website.
Company Performance Highlights • Revenue: Rs. 302 crores (down 5% YoY) • Profit After Tax (PAT): Rs. 51.2 crores (down 11% YoY) • Growth Opportunities: Focus on infrastructure and energy transition, particularly in aerospace, defense, and cryogenic industries. • Order Book: Exceeds Rs. 1,100 crores.
Financial Summary by CFO • Comfortable net cash position. • Strong order backlog. • Confidence in achieving full-year targets.
Growth Prospects • Sectors: Industrial gases, LNG, Cryo Scientific. • New Products: Hydrogen and helium ISO containers. • U.S. Market: Gaining traction in disposable cylinder segment with significant orders from Honeywell.
Challenges and Strategies • Shipping Issues: Ongoing Red Sea challenges affecting delivery times and costs. • Growth Target: Projected 18-20% growth in FY25. • Margin Improvement: Margins improved to 24% this quarter.
LNG and Green Hydrogen Initiatives • LNG Fueling Stations: Government initiative for 1,000 stations; 50 under construction, 23 operational. • Market Share: Captured 70-75% in LNG fueling sector. • Green Hydrogen: Focus on liquid hydrogen storage; recent orders from ISRO and supply to South Korea.
Industrial Gases and Competition • Revenue Decline: Fewer orders from refineries, but optimism for future orders. • Market Competition: Limited players in India; competitive edge in project orders.
Conclusion • Positive outlook for growth in LNG and hydrogen sectors. • Emphasis on long-term performance evaluation over quarterly results. • Conference call concluded with thanks from the moderator.
INOX India Limited Q4 and FY24 Financial Results Conference Call Summary
Key Highlights • Management Team: CEO Deepak Acharya and CFO Pavan Logar led the call. • Successful Listings: Listed on NSE and BSE. • New Plant: Commissioned a new facility in Gujarat. • Certifications: Maintained various certifications for cryogenic equipment. • Order Backlog: ₹1,087 crore, with significant contributions from: • Industrial Gas: 63% of total income • LNG: 28% of total income • Order Inflow: Increased by 14% year-on-year to ₹1,193 crore. • Green Energy Initiatives: Focus on LNG and hydrogen solutions.
Financial Performance • Q4FY24 Revenue: ₹287 crore (19% increase YoY). • FY24 Revenue: ₹1,162 crore (18% increase YoY). • EBITDA: • Q4: ₹64 crore (22.4% margin) • FY: ₹282 crore (24.2% margin) • Profit After Tax (PAT): • Q4: ₹44 crore (44% increase) • FY: ₹196 crore (27% increase) • Export Revenue: Highest at ₹641 crore (44% increase). • Net Cash Position: ₹253 crore after capital expenditures.
Future Outlook • Growth Rate: Confidence in achieving 20% growth, driven by LNG and Cryo Scientific divisions. • CAPEX Plans: ₹100 crore for the next year, funded through internal accruals. • Disposable Cylinders: Expected sales of ₹150-160 crore in FY25.
Competitive Advantage • Duty Benefits: 0% duty advantage over competitors facing 8.5% due to verification by the US Department of Commerce. • Sales Stability: Overall exports stable at about 55%.
Strategic Partnerships and Projects • LNG Fueling Stations: Partnership with Adani, contract value estimated at ₹4-5 crore per station. • Hydrogen Sector: Focus on future growth with ongoing collaborations.
Expense Management • Recent Expense Increase: Due to one-off costs related to the Savli plant, now capitalized.
Customer Relations • Client Contributions: Shift towards new customers, but major clients like Linde continue purchasing.
Closing Remarks • Engagement: Deepak Acharya thanked participants and encouraged further inquiries through Investor Relations. • Moderator Conclusion: Call concluded by Axis Capital Limited, inviting attendees to disconnect.
INOX India Limited Conference Call Summary (February 17, 2024)
Overview • Conference call held on February 13, 2024, to discuss Q3 and 9M FY24 financial results. • First quarterly results presentation post stock exchange listing on December 21, 2023.
Financial Highlights • Record export revenues: ₹501 crore (75% YoY increase). • Total revenues for nine months: ₹875 crore; EBITDA: ₹217 crore. • EBITDA margin: 25%; PAT margin: 17%. • Debt-free status with a net cash position of ₹235 crore. • Strong order backlog: ₹1,043 crore.
Business Developments • Partnership with Adani Total Gas for LNG solutions. • MOU with Inter-University Accelerator Centre for superconducting magnet technology. • Secured three new patents in the cryogenic sector.
Growth and Market Insights • Balanced growth across three sectors: cryoscientific, LNG, and industrial gases. • Anticipated demand for cryogenic gases and cleaner fuel sources (LNG, hydrogen). • Participation in public sector tenders for CNG stations.
Capital Expenditure • Capex incurred: ₹90 crore in FY’24; additional ₹25 crore planned for Savli project. • Margins expected to remain stable.
Collaboration and Partnerships • Long-term partnership with Adani Total Gas for LNG infrastructure. • Ongoing collaboration with an Italian manufacturer for technology transfer.
Technological Edge • INOX's specialization in cryogenic tank manufacturing with unique materials and certifications. • Focus on hydrogen storage and distribution under the National Green Hydrogen Mission.
Competition and Market Position • INOX's relationship with Linde PLC as a customer; Linde relies on INOX for cryogenic storage tanks. • Management's ability to pass through commodity price inflation due to limited suppliers.
Conclusion • Management expressed gratitude to participants and encouraged further inquiries through Investor Relations.