Release Date: May 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Net sales for the quarter increased by 6% to INR2,856 crores compared to INR2,690 crores in the previous quarter.
- Annual net sales grew by 16% to INR10,563 crores from INR9,094 crores.
- EBITDA for the year increased by 52% to INR2,005 crores from INR1,320 crores.
- Profit after tax for the year rose by 65% to INR831 crores from INR503 crores.
- The company achieved a capacity utilization of 83% in the first year of full operation for its expansion projects.
Negative Points
- EBITDA for the quarter decreased by 10% to INR548 crores from INR608 crores in the previous quarter.
- EBITDA margins for the quarter dropped to 19.2% from 22.6%.
- Profit after tax for the quarter fell to INR236 crores from INR289 crores in the previous quarter.
- The demand is currently subdued due to elections, impacting short-term growth.
- The company anticipates a marginal dip in pricing and does not expect significant price hikes until the third quarter.
Q & A Highlights
Q: Did you mention a cost reduction potential of INR150 to INR200 per tonne in your initial comments?
A: Yes, INR150 to INR200 cost reduction potential going forward, not immediately in FY25, but over the next two fiscal years. Major areas include logistics, green power, AFR usage, and supply chain optimization.
Q: What are the timelines for the Panna-2 CapEx and related grinding units?
A: The integrated plant should be commissioned within 18 months, around September-October next year. The grinding unit should be completed within 12 months of starting work at the site, likely by end of Q2 or beginning of Q3 FY26.
Q: What kind of contribution is expected from the Toshali Cement acquisition?
A: We plan to invest about INR40 crores this year to modernize the plant. We expect to get about 3 to 4 lakh tonnes annually from this plant starting from the third quarter onwards.
Q: What are your views on current market pricing and demand trends?
A: Demand is subdued due to elections, but we expect normal demand to return post-Q3. Pricing may see some improvement from the third quarter onwards. There has been a marginal dip in pricing compared to Q4.
Q: Can you provide guidance on CapEx for FY25 and FY26?
A: CapEx for FY25 will be around INR1,900 crores and for FY26 around INR1,800 crores.
Q: What was the revenue and EBITDA for the paints business in Q4?
A: Paint revenue in Q4 was INR30 crores, with an overall revenue for the year at INR153 crores. EBITDA loss for the year was INR20 crores, and for Q4 it was INR6 crores.
Q: What is the expected EBITDA loss for the paints business in FY25 and FY26?
A: The EBITDA loss for FY25 is expected to be around INR35 to INR40 crores. For FY26, we expect some loss but aim to be EBITDA positive by FY27.
Q: Can you provide details on the market share and size for white cement and putty?
A: We maintain a market share of 45% to 48% in white cement and around 22% in putty. The market size for putty is closer to 4 million tonnes.
Q: What are the timelines for the Prayagraj and Ujjain grinding units?
A: Both units are expected to be commissioned by Q3 FY26. There is not much work required, mainly marginal upgradation.
Q: What is the status of the UAE business and its contribution?
A: The UAE business has shown substantial improvement with a 34% increase in volume and an EBITDA of over INR70 crores. We expect to maintain these volume numbers and continue to explore new markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
