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Meeting Details • Date: August 2, 2024 • Submission Date: August 7, 2024 • Participants: • Rajeev Jain (Managing Director) • Mahesh Bhave (CFO) • Shraddha Kavathekar (Company Secretary) • Purpose: Engage with institutional investors through presentations and Q&A.
Key Highlights • Cautionary Statements: CFO Mahesh Bhave addressed risks related to forward-looking statements. • Company Performance: • Strong growth in distillery and vegetable oil sectors. • Record sales in valves division. • Order intake of ₹11,948 million. • Improved net financial position of ₹3,152 million. • Sustainability Commitment: Significant emission reductions and employee-driven process improvements.
Recent Events and Initiatives • Conferences Attended: • Valves Dealer Meet in Chennai • KSB Agri Intex Expo in Coimbatore • Chemtech Expo in Mumbai • Certifications: KSB Shirwal plant received ISO 19443:2008 certification for nuclear application systems.
Q&A Session Insights • Growth Factors: • Slower growth attributed to project delays and payment issues. • Optimism for mid-teens growth potential. • Margins: • Recovery to 14% margins; long-term target of 13-14%. • Fluctuations based on product mix and project types. • Nuclear Power Orders: Anticipated progress by year-end with expected sales revenue in the first half of the following year. • Sector Optimism: Positive outlook for solar and hydro sectors, with plans for enhanced local manufacturing.
Export and New Business Segments • Export Opportunities: • Selling submersible borehole pumps in Africa. • Energy project contracts in Greece and the USA. • Fire-Fighting Pumps: Achieved ₹25 crores in sales, with plans to double. • Railway Pump Business: Success with long-term contracts from Siemens and ABB.
Challenges and Future Outlook • Market Dynamics: • Limited opportunities in thermal power due to BHEL's dominance. • Strong order book of ₹1,300 crores for nuclear power. • Margin Improvements: Enhanced supply chain processes leading to sustainable valve margins of 12-13%. • Product Development: Ongoing efforts to fill gaps in the API product range.
Conclusion • Participants expressed gratitude for the engaging discussion. • Rajeev Jain thanked attendees for their insightful questions, indicating a positive reception of the meeting.
Meeting Overview • Date: March 5, 2024 • Submission: Transcript submitted to BSE and NSE on March 8, 2024 • Key Personnel: • Rajeev Jain (Managing Director) • Mahesh Bhave (CFO) • Shraddha Kavathekar (Company Secretary) • Host: ICICI Securities
Key Discussions • Cautionary Statements: Risks and uncertainties affecting future performance highlighted by Mahesh Bhave. • Agenda Topics: • Organizational structure • Operational highlights • Customer base and order intake • Financial performance • ESG initiatives
Company Updates • Manufacturing Presence: Seven locations and over 1,000 dealers. • New Developments: Inauguration of a green admin building and manufacturing facilities. • Product Applications: Focus on energy, irrigation, wastewater, and construction sectors.
Financial Performance • Q4 2023 Highlights: • Growth in revenue, profit, and earnings per share. • Strong order backlog and export performance. • ESG Initiatives: • Solar energy power purchase agreement. • 22% reduction in scope one carbon emissions for 2022.
Gender Diversity and CSR • Diversity Initiatives: Formation of a diversity project team and recruitment drives for women. • CSR Efforts: Women Entrepreneurship Development Program aiding 40 women.
Market Insights • Domestic Market: Good traction in standard business; slowdown in petrochemical and oil & gas sectors. • Nuclear Power Program: Over INR 1000 crore in orders; growth expected in the next 5-10 years.
Aftermarket Business • SupremeServe: Important for profitability; initiatives to grow revenue contribution. • Acquisitions: Successful sales of mechanical seals driving growth.
Future Outlook • Reciprocating Pumps: Targeting market opportunities in oil and gas and nuclear sectors. • Export Performance: INR 382 crores or 16% of total sales for CY23. • Gross Margin Strategy: Accepting lower-margin orders to build install base for future sales.
Green Hydrogen Sector • Leadership: KSB Group's strong position in green hydrogen. • Growth Expectations: Gradual growth with significant opportunities over the next decade.
Conclusion • Optimism for Growth: Supported by a robust order book and strategic initiatives despite market fluctuations.
Meeting Overview • Date: November 8, 2023 • Hosted by: KSB Limited with assistance from ICICI • Key Personnel: • Rajeev Jain (Managing Director) • Mahesh Bhave (CFO) • Nitin Patil (VP of Operations) • Purpose: To provide insights into KSB's operations in the pumps and valves sector.
Shirwal Plant Highlights • Established in 2017, leading facility in engineered pumps. • Focus on pumps for conventional/nuclear energy and oil/gas. • Features: • 100,000 square meters area • State-of-the-art machinery • IGBC Green Factory platinum rating • Advanced cooling systems and rooftop solar installation • Commitment to corporate social responsibility and local resource utilization.
Recent Orders and Sustainability Initiatives • Significant orders delivered to: • Vietnam Power Corporation • NTPC Telangana • Sustainability efforts: • One-megawatt rooftop solar power plant • Tree planting and water management practices • CSR initiatives include donations to local schools and community support.
Company Structure and Performance • Mahesh Bhave outlined the company's structure and extensive presence in India. • Key sectors: energy, industrial, irrigation, wastewater, and construction. • Q3 Highlights: • ₹551 million order from Nuclear Power Corporation. • 24% growth in exports and consistent revenue growth.
Conference Call Insights • Nitin Patil discussed solar generation trends and CSR initiatives. • Rajeev Jain addressed: • Status of NPCL orders and export opportunities. • Growth in project business and its future trajectory. • Importance of expanding product offerings and dealer networks.
Financial Performance and Margins • Current order book totals ₹2,200 crores. • EBITDA margins for standard business are higher than project business. • Optimism about returning gross margins to previous levels (47%).
Future Opportunities • Nuclear expansion potential with estimated revenue of ₹100 crores next year. • KUSUM solar initiative with a recent ₹30 crore order. • Growth in general industry segment driven by investments in distilleries and heating systems.
Conclusion • KSB Limited is positioned for growth with a strong market presence, commitment to sustainability, and ongoing investments in infrastructure and technology. The management expressed confidence in future opportunities across various sectors.
Meeting Overview • Date: March 6, 2023 • Transcript submitted to BSE and NSE • Key personnel: Managing Director Rajeev Jain, CFO Mahesh Bhave • Focus: Company operations and investor Q&A
Company Background • Established in 1960 • Leading supplier of pumps, valves, and systems in India • Serves sectors: agriculture, wastewater management, energy, pharmaceuticals
Presentation Highlights • Mahesh Bhave discussed: • Caution on forward-looking statements • Organizational structure and regional presence • Manufacturing divisions: energy pumps, irrigation, wastewater management • Success stories from 2022: record order intake, sales growth, IP acquisition from BPCL • Financial performance: strong revenue and profit growth, reduced net financial position
Environmental and Social Initiatives • Environmental sustainability efforts: • Biogas plant for food waste • Eco-friendly practices: electric vehicles, rainwater harvesting, LED lighting • Social initiatives: • Cultural events, sports tournaments, health programs • CSR efforts supporting local schools
Q&A Session Insights • Rajeev Jain addressed: • Nuclear pump orders and Bharat Pumps technology acquisition • Current order status and price variation clauses • Market penetration strategies in residential and agricultural segments • Performance in Agri/domestic and industrial pumps
Financial Performance and Growth Strategies • Revenue distribution: • Standard business: 45-48% • Project business: 20% • SupremeServ and valves: 15-20% • Order book: ₹2,500-2,600 crores • Growth strategies: new product introductions, sales office expansion
SupremeServ Initiative • Aim: Increase service revenue to 20% of total revenue • Key initiatives: • Dedicated SupremeServ facility • Central warehouse for spare parts • KSB Guard technology for remote monitoring
Capital Expenditure and Future Outlook • CapEx: Around ₹100 crores for acquisitions and capacity expansion • Focus on new market segments: Mechanical Seals, Firefighting, Defense, solar business • Positive cash flow outlook supported by milestone payments
Export and Manufacturing Strategy • Exports: 15% of total sales, with expectations for growth • Manufacturing focus: Power and oil & gas projects • Nuclear projects: Positive cash flow maintained through advance payments
Conclusion • Rajeev Jain emphasized the importance of internal organization and quality standards to support growth targets.