Steelcast Limited Q4 FY24 Earnings Conference Call Summary
Financial Performance
• Q4 FY24 Revenue: Increased by 9% sequentially to INR 98.4 crores; declined 18.2% year-over-year.
• Full Fiscal Year Revenue: Fell 14.1% to INR 409.8 crores due to reduced economic activity.
• Margins: Maintained EBITDA margin of 29.3% and PAT margin of 19%.
• Cost-Saving Initiatives: Improvements in EBITDA and PAT attributed to renewable energy initiatives.
Future Outlook
• Demand Resurgence: Anticipated recovery starting Q3 FY25.
• Diversification Plans: Expanding into railroads and defense sectors while remaining debt-free.
• Capex Plans: Approximately INR 22 crores investment, including a new 1 MW power plant by December 2024.
Investor Inquiries
• Demand Outlook: Destocking expected to conclude by September 2024; slight demand slowdown due to geopolitical tensions.
• American Rail Roads Contribution: About INR 8 crores in FY '24, projected to increase to 14-15% by FY '26.
• Export Expansion: Plans to expand exports to 18 countries over the next few years.
Operational Strategy
• Sustainability of Margins: EBITDA margins projected to sustainably reach 25-26% in the long term; ROE expected between 30-35%.
• De-risking Strategy: Diversification into various end-user industries to reduce cyclicality.
• Production Capacity: Existing capacity of 30,000 tons; prepared to ramp up to 18,000 tons as demand increases.
Market Conditions
• U.S. Railroad Approvals: Confirmed approvals in place; ramp-up expected to begin in Q3.
• Impact of Duties on Chinese Steel: Significant opportunity for Indian exporters due to a 30-35% duty differential.
Clarifications
• Power Costs: While absolute power costs rose, overall costs as a percentage of sales increased due to natural gas price rises; net power cost directionally lower.
• Margin Maintenance: Company will not pursue lower-margin orders to increase utilization.
Conclusion
• The call concluded with thanks to participants and facilitators, emphasizing Steelcast's optimism in navigating future challenges while maintaining operational efficiency.

Steelcast Limited Q3 FY24 Earnings Conference Call Summary
Key Executives Present
• Rushil Tamboli (Whole Time Director)
• Subhash Sharma (Executive Director and CFO)
• Umesh Bhatt (Company Secretary)
Financial Performance
• Revenue: Rs. 90.3 crores
• 11% quarter-on-quarter decline
• 25% year-on-year decline
• EBITDA: Rs. 27.3 crores (30.3% margin)
• Profit After Tax: Rs. 17.4 crores (19.3% margin)
Market Outlook
• Anticipated recovery by Q3 FY25
• Factors: Stable commodity prices, increased export demand
• Focus on diversifying customer base and expanding product portfolio
Order Book Insights
• Current order book: Approximately Rs. 90 crores
• Railway orders: 4% to 5% of total, with plans to increase
Operational Efficiency
• Material price fluctuations managed via quarterly price variation formula
• Capacity utilization: 39%-40% in Q3, expected gradual improvement
Sector Performance
• Construction Equipment: Performing well, inventory clearing
• Exports: Delays due to external factors
• Defense Contracts: Ongoing commitments with limited new contracts visibility
Margin Analysis
• Gross margins improved, but net margins did not reflect the same growth
• Savings from power cost reductions
• Domestic sales decline linked to reliance on international markets
Future Projections
• Revenue target: Rs. 1000 crore in 4-5 years
• Focus on railroad, ground engaging tools, and defense sectors
• No new facility investments until 50-55% capacity utilization achieved
Production and Market Expansion
• Current production: 2,900 tonnes (down from 3,800 tonnes in Q3 FY23)
• 60% exports, 40% domestic
• Ongoing efforts to enter North American and Japanese markets
Conclusion
• Anticipation for future investor calls
• Appreciation for investor relations partners, Orient Capital

Steelcast Limited Q2 FY24 Earnings Conference Call Summary
Financial Performance
• Revenue Decline: 16% year-on-year and 15% quarter-on-quarter, totaling Rs. 101.6 crore.
• EBITDA Margins: Improved to 28.8%.
• Profit After Tax (PAT): Increased to Rs. 18.6 crore, reflecting an 18.3% margin.
• Debt Status: Debt-free after repaying Rs. 23.6 crore in short-term debt.
Market Outlook
• Customer Sentiment: Cautious "wait and watch" attitude due to geopolitical uncertainties.
• Future Stability: Optimism for market stabilization by Q4 2024.
• Hybrid Power Utilization: Expected annual savings exceeding Rs. 11 crores.
Export and Defense Insights
• Export Slowdown: Temporary, as customers manage excess inventories.
• Defense Orders: Pending government tenders with no immediate visibility on new products.
Growth Projections
• American Railroad Industry: Anticipated increase in sales over the next few years.
• Production Decline: 20% decline in production to about 3,200 tons this quarter, but improved margins due to better export realizations and cost savings.
Capacity Utilization and Future Guidance
• Utilization Guidance for FY'25: Likely below 50% this year, with expectations of improvement next year.
• Target EBITDA Margin: Remains around 20-22%, with efforts to maintain or slightly exceed this despite revenue declines.
Capital Expenditure (CAPEX) and Working Capital
• CAPEX Spending: Approximately Rs. 8 crore in the first half of FY'24, with future plans under consideration.
• Working Capital Days: Currently around 75 days, with a goal to reduce by at least 10% in the coming quarters.
Conclusion
• Capacity Utilization Projection: Expected around 43-44% for the current year, with hopes to exceed 50% next year.
• Closing Remarks: Thanked participants and wished them well for Diwali and New Year.

Steelcast Limited Q1 FY24 Earnings Conference Call Summary
Key Highlights
• Date of Call: August 4, 2023
• Quarter Ending: June 30, 2023
• Revenue: Rs. 119.5 crores (3.3% YoY increase)
• EBITDA: Rs. 32.3 crores (34% rise, all-time high margin of 27%)
• Profit After Tax (PAT): Rs. 20 crores (43.4% increase, PAT margin of 17%)
• Domestic Revenue Growth: 32% (52% domestic, 48% export)
Cost-Saving Measures
• Implementation of a 5 MW solar power plant and a hybrid power plant.
• Projected annual savings of Rs. 10-11 crores.
Market Outlook
• Anticipation of a softer market in upcoming quarters.
• Optimism about operational improvements and a diversified order book, especially in the railroad sector.
Q&A Highlights
• Modular Expansion Plans:
• Capacity utilization at 52%; modular approach allows gradual increases.
• Potential expansion in mid-2024.
• Pricing Mechanism:
• Adjusts quarterly based on raw material costs; benefits from lower prices passed to customers with a lag.
• New Customers and Sectors:
• Addition of two new customers focusing on defense and railways.
• Notable repeat order in defense.
• Global Competitiveness:
• Continued cost advantage over European peers.
• Plans to increase market share in the replacement market.
Capacity Utilization and Order Book
• Current order book: Rs. 105-110 crores (domestic-export split of 55%-45%).
• Minimal revenue from railways (1-2% of order book), with significant supplies expected in October.
Future Projections
• Capacity utilization targets:
• 50% in FY24, 60% in FY25, 75% in FY26.
• Potential for 20% revenue growth with improved capacity utilization.
• Sustainable EBITDA margins projected at 20-22%.
Financial Health
• On track to be debt-free by October 1, having repaid a significant portion of short-term debt.
• Acknowledgment of ongoing global uncertainties as potential risks.
Conclusion
• Management expressed gratitude to participants and looks forward to future discussions.

Steelcast Limited Q4 and FY23 Earnings Conference Call Summary
Key Financial Highlights
• Revenue Growth:
• FY23 revenue increased by 58% year-on-year to Rs. 476.8 crores.
• Q4 revenue grew by 29% to Rs. 120 crores.
• Profit After Tax (PAT):
• Achieved a 112% increase to Rs. 70.5 crores for FY23.
• Dividend Declaration:
• Special interim dividend of 63% announced.
Operational Efficiencies
• Cost Savings:
• Solar power plants expected to save Rs. 10 crores annually.
• Debt Management:
• Aiming to be debt-free by paying off short-term loans.
Future Outlook
• Growth Projections:
• Anticipating flat growth in H1 FY24 due to global challenges, but optimistic for recovery in H2.
• EBITDA Margin Goals:
• Current 26% margin expected to continue; targeting 22% with an additional 2-4% from efficiencies.
Production and Capacity Insights
• Production Figures:
• Produced 15,740 tons in FY23 with a capacity utilization of 54%.
• Future Capacity Plans:
• Modular expansion of 10,000 tons planned, pending timing.
Market and Industry Developments
• Sales Mix Strategy:
• Targeting 10% of sales from replacement demand over the next 3-4 years.
• New Market Penetration:
• Received American railroad approval; aiming for 15% of sales from this sector.
Challenges and Considerations
• Volume Growth:
• Significant growth in FY23, but recent quarterly performance stabilizing around 4,000 tons.
• Geopolitical Factors:
• Projected CAGR growth of 15%-20% from FY21 to FY27-28, with potential short-term fluctuations.
Additional Notes
• Environmental Compliance:
• All necessary clearances for production are in place.
• Family Involvement:
• Rushil Tamboli has rejoined the company for daily operations.
Conclusion
• The call concluded with gratitude for attendees' participation and a focus on ongoing growth and operational improvements.

Steelcast Limited Q3 FY '23 Earnings Conference Call Summary
Date and Participants
• Date: January 24, 2023
• Key Executives:
• Chairman: Chetan Tamboli
• CFO: Subhash Sharma
Financial Performance
• Revenue:
• Year-on-year increase of 52% to INR 119.7 crores
• EBITDA:
• Increased by 84% to INR 30.7 crores
• PAT:
• Grew by 126% to INR 19.3 crores
• Operational Highlights:
• Improved operational efficiencies
• Strong order book with 65% revenue from exports
Future Projections
• Quarterly Volume Target for FY '24:
• Projected at 5,000 tons
• Growth Drivers:
• Existing customers, new parts, and new industries
• Volume Growth Projection:
• Anticipated 20% growth for the next year
Market Insights
• Competitive Landscape:
• Six to seven global players in niche casting market
• Domestic vs. Export Sales:
• Fluctuations in sales ratios noted
• Margin Sustainability:
• Comfortable range of 20% to 25% EBITDA margin
Strategic Focus
• Diversification Strategy:
• Mitigating risks through diversified client base and product offerings
• Capex Plans:
• Preference for Greenfield expansions
• Incremental capacity increases of 5,000 tons annually
Operational Efficiency
• Cost Management:
• Improved gross profit margins due to lower input costs
• Order Visibility:
• Three-month firm order book with annual visibility from customers
Additional Insights
• Impact of American Railroad Orders:
• No specific guidance provided
• Hybrid Power Plant and Solar Project:
• On track for commissioning by March 31, 2023, expected savings exceeding INR 10 crores
• Response to Economic Concerns:
• Reassurance of stability despite potential European slowdown
Conclusion
• Optimism for Future:
• Growth potential from India's infrastructure spending and the "China Plus One" strategy highlighted by Tamboli.