Conference Call Notification
• Date: November 15, 2023
• Transcript availability for Q2 FY24 earnings call held on November 9, 2023.
• Key personnel: Chairman Dr. Ramesh Mansukhani and CFO Mr. Ashok Gupta.
Financial Performance
• Standalone Total Income: INR 547 crores (154% YoY increase).
• Net Profit: INR 43.5 crores.
• Consolidated Income: INR 1,037 crores (136% YoY increase).
• Net Profit: INR 39 crores.
• Order Book: Strong at INR 1,400 crores.
• Certifications: Successful for ERW pipe plant.
Operational Insights
• EBITDA Margin Guidance: Approximately 10% for FY24.
• Sector Contributions: Oil and gas (11%), Water (8-9%).
• Raw Materials: HR Coils and HR Plates; steel prices softening.
• Debt and Capital Expenditure: INR 550 crores funded by 70% debt, 30% equity.
Revenue and Growth Projections
• Anticipated revenue growth of 40% to 50% by end of FY24.
• Export vs. Domestic Revenue: 80-20 split favoring exports.
• Revenue Guidance: Minimum growth of 15% for FY24 and FY25.
Management Responses
• Addressed concerns about gross margin fluctuations, debt repayment, and inventory levels.
• Clarified finance costs: INR 12 crores in bank charges, INR 8 crores in interest.
• Discussed potential revenue from new projects and government subsidies.
Future Expectations
• Expected revenue for second half: INR 1,500 crores, aiming for total of INR 3,000 crores for the year.
• Projected peak revenues from new plants: INR 800-1,000 crores each.
• Margin performance expected to improve to 9-11% in the future.
Additional Insights
• Ongoing discussions regarding government subsidies for new plants.
• Introduction of steel bends and connectors as value-added products.
• Approximately 60-70% of raw materials sourced from imports.
Conclusion
• Management encouraged further inquiries through the Investor Relations team.