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Notification and Compliance • Date of notification: August 9, 2024 • Compliance with SEBI regulations • Transcript available on the company's website
Conference Call Overview • Participants: • Mr. Himanshu Aggarwal (Whole-Time Director and CFO) • Mr. Vishal Mehta (Moderator, Stellar Investor Relations) • Focus on forward-looking statements and associated risks
Operational Highlights • Overview of three segments: • Equipment Rentals and Infrastructure Works • Warehousing and Transportation • Steel Processing and Distribution • Involvement in major infrastructure projects (e.g., metro rail, bullet train)
Financial Performance • Highest-ever first-quarter revenue and profitability • 18% year-on-year revenue growth • 71% growth in order book • EBITDA margin: 33.7% • Revenue drop in warehousing and transportation (12%) due to labor disputes • Steel processing segment revenue increase (92%) from new order
Future Plans and Investments • Focus on renewable energy sector • Planned capex of Rs 100 Crores by December 2024 • Normalized operations at Vizag steel plant
Q&A Highlights • Yield trends: Overall healthy, but no sector-specific breakdown • Increase in depreciation explained by prior capex • Average monthly yields reported at 2.98% • Concerns about declining EBITDA margins addressed with confidence in recovery
Competitive Edge and Market Strategy • Success in contract bidding attributed to service quality • Operations across 21 states for quick service response • Young fleet of equipment enhances client satisfaction • Market entry barriers discussed, emphasizing service reliability
Financial Metrics and Projections • Raw material to sales percentage increase due to lower-margin orders • Cautious approach to EPC space with a target EBITDA margin of at least 20% • Gross vs. net yield explained; realistic EBITDA growth target of 30-40%
Equipment and Capacity Utilization • Breakeven period estimated at five to six years • Importance of securing new orders for growth • Equipment maintenance strategy: 9 to 10 years with 20% salvage value • Capacity utilization in equipment rental segment at 82% • Steel handling tonnage lower this quarter due to operational challenges
Conclusion • Invitation for further questions via email after the call.
Company Overview • Date of Meeting: May 9, 2024 • Company: Tara Chand Infralogistic Solutions Limited • Key Speaker: Mr. Himanshu Aggarwal, Whole-Time Director and CFO • Recent Achievement: Migration to NSE Main Board
Financial Performance • Q4 Revenue: ₹46.90 crores (19% increase) • FY24 Revenue: ₹174.86 crores (21% annual growth) • EBITDA Margin: Improved to 33% • Profit After Tax: Significant increase • Growth Target for FY25: Minimum 30% year-on-year
Operational Segments • Key Segments: • Equipment Rentals and Infrastructure • Warehousing and Transportation • Steel Processing • Rental Yields: Averaged 2.85% for FY24, influenced by seasonal demand
Capital Expenditure (CAPEX) Strategy • Funding Sources: Internal accruals, supplier credit, and debt • Current Debt: Approximately ₹85 crores • Debt-to-Equity Ratio Target: Reduce from 0.9 times • Planned CAPEX: ₹150 crores over current and next financial year
Order Book and Execution • Current Order Book: ₹138 crores • Sector Focus: 70% from warehousing and transportation • Execution Period: 5-7 years for warehousing contracts; 6 months to 3 years for equipment rentals
Equipment Rental Insights • Industry Competition: Limited in larger crane sector • Depreciation Rates: Adjusted due to acquisition of larger machines • Transportation Margins: Initially stressed due to new long-term contracts
Logistics and Warehousing Model • Steel Distribution: Operates warehouses for manufacturers like RINL and SAIL • Contract Duration: Typically 5-6 years with price escalations
Customer Retention and Unique Selling Propositions (USPs) • Experience: Four decades in the industry • Innovative Techniques: Ownership of specialized equipment enhances loyalty
Future Outlook • Growth Guidance: 30% year-on-year across sectors • Sustainability of EBITDA Margin: Expected between 50% to 55% for equipment rental • Considerations for Asset Depreciation: Potential for improved reporting on asset aging
Conclusion • Commitment: Reaffirmed dedication to achieving growth targets and addressing participant inquiries.
Financial Highlights • Q3 FY24 Performance: • Total Revenue: INR 44.85 crores • EBITDA: INR 14.53 crores (32% margin) • Profit After Tax: INR 3.35 crores • Nine-Month Performance: • Total Revenue: INR 127.96 crores • Consistent EBITDA margins
Company Operations • Segments: • Equipment hiring • Warehousing • Steel processing • Capital Expenditure: • Significant increase noted • Improvements in receivable cycles • Order Book: • INR 36 crores as of February 1, 2024 • Expectations for new orders
Demand and Pricing • Market Dynamics: • Rising demand has improved pricing terms • Clients encouraged to secure contracts in advance
EPC Division Updates • Tender Delays: • Anticipated tenders delayed, but positive results expected in the upcoming quarter • Margin Targets: • Too early to set specific targets, but aim to exceed industry standards
Capital Allocation Strategy • Debt Reduction Goal: • Aim to reduce debt-to-equity ratio to 1 or below (currently at 1.08)
Growth Vision • Projected Growth Rate: • Continued growth of 20-25% • Focus on specialized EPC contracts with better profit margins
Regulatory Updates • Main Board Migration: • Delay attributed to regulatory requirements • Expected migration to NSE main board by end of March 2024
Recent Contracts • Sales Contract with Steel Authority of India Limited: • Valued at INR 20 crores for 4.5 years
Capital Expenditure Plans • Yearly Capex Anticipation: • Approximately INR 40-50 crores, dependent on client orders and board approvals • Revenue Generation: • Equipment rental segment currently generates 82% of revenue, with a target to increase to 90%
Sector Expansion • Focus Areas: • Cement, steel, petrochemicals, and hydropower • Wind Sector: • No current exposure, but ongoing studies to explore opportunities
Conclusion • Commitment to delivering results despite market fluctuations and appreciation for participant engagement.
Notice Submission • Date: November 13, 2023 • Submitted to: National Stock Exchange of India • Meeting Date: November 7, 2023 • Transcript availability: On company website • Signed by: Himanshu Aggarwal, Whole Time Director and CFO
Q2 FY24 Earnings Conference Call • Hosted by: HEM Securities • Participants: Himanshu Aggarwal and moderator Astha Jain • Included disclaimers on forward-looking statements
Company Operations Overview • Segments: • Warehousing and transportation • Tangible goods and infra works • Steel distribution processing • Key Clients: PSU companies and large MNCs • Focus: Infrastructure projects (e.g., metro construction, Mumbai-Ahmedabad bullet train)
Financial Performance • Q2 FY24: • Revenue: INR 42.95 crores (31% y-o-y increase) • PAT: INR 2.69 crores (68% y-o-y increase) • H1 FY24: • Revenue: INR 83.12 crores (26% increase) • PAT: INR 6.48 crores (75% increase) • Order Book: Approximately INR 80 crores, expected execution by March 2024
Growth Insights • Steel logistics growth driven by new contracts • Equipment rental segment faced seasonal slowdowns • Projected growth trajectory: 20-25%
Capacity Utilization and Future Demand • Current capacity utilization: 75-85% • Anticipated demand increase in Q3 and Q4 • Capital expenditures: INR 35 crores this financial year
Margin Improvements • Rising EBITDA margins attributed to: • Better rent realization • Shift from subcontracting to equipment rentals • Introduction of advanced equipment for productivity enhancement
Return on Equity (ROE) and Competitive Advantages • ROE impacted by equipment depreciation • Expected improvements in profitability and working capital cycle • Competitive intensity remains stable with no significant price undercutting
Employee Structure and Capital Expenditure • Workforce: 623 permanent employees, ~300 contractual workers • Capex: INR 36 crores spent in FY24, potential for more in cement sector • Clarification needed on capex figures for FY22 and FY23
Conclusion • Growth target reiterated: 20% to 25% for H2 FY24 • Positive impact of past capex on current revenue expected • Call concluded with thanks from moderator Astha Jain
Notice Submission • Date: August 23, 2023 • Submitted to: National Stock Exchange of India • Purpose: Shared transcript of investor meeting held on August 18, 2023 • Compliance: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 • Signed by: Himanshu Aggarwal, Executive Director and CFO
Company Overview • Specializes in: Infrastructure development and industrial capacity expansion • Equipment: Cranes, piling rigs, trailers • Clientele: Primarily Public Sector Undertakings (PSUs)
Financial Performance (Q1 FY24) • Total Revenue: INR 40.17 crores (up 19% YoY) • EBITDA: INR 13.27 crores (up 33%) • Profit Before Tax: INR 4.46 crores (up 58%) • Profit After Tax: INR 3.8 crores (up 81%) • Current Order Book: INR 110 crores (warehousing, transportation, equipment rental)
Q&A Highlights • Infra-work and Transportation Segments: • Infra-work: Leasing medium and heavy equipment • Transportation: Steel logistics and stockyard operations • Capacity Utilization: • Infra rentals: 84-85% • Steel handling: 75% • Capital Expenditure: Recent investments of INR 25.4 crores; future capex based on client needs • Operating Margins: Lower margins due to diverse service mix compared to competitors
Concerns Addressed • Declining ROE and Receivables: • ROE decline attributed to COVID-19; recovery noted as of March 2023 • Cash conversion cycle improved from 140 days to 75 days • Impact of Elections: Company insulated from electoral disruptions due to public sector client relationships
Future Growth Prospects • Profit margins consistent at around 14.5% • Growth expected in infrastructure and equipment rental sectors • Current order book execution planned for FY24 with additional orders anticipated
Crane Leasing Business • EBIT margin for crane rentals: 14-15% (net profit before taxes and interest) • EBITDA for crane rentals typically ranges from 50% to 60% • Current order book includes approximately INR 50 crores from crane business
Additional Inquiries • Revenue contributions from various sectors: No current involvement in wind sector • Arbitration case with RINL: No impact on professional relationship • Plans to migrate to main board: Process is underway • Order book contracts: Volume-based with escalation clauses for costs • Metro rail contracts: Equipment rental division involved, competitive pricing maintained
Conclusion • Meeting concluded with thanks to participants and team.