Q4 2024 Pennar Industries Ltd Earnings Call Transcript
Key Points
- Pennar Industries Ltd (BOM:513228) reported a 23% increase in net sales for Q4 FY24, reaching INR822.8 crores.
- The company achieved its highest-ever annual net sales of INR3,130 crores and PBT of INR131.41 crores, reflecting a 33.5% growth in PBT.
- The PBT margin for Q4 FY24 stood at 4.76%, with expectations of continued margin expansion due to a shift towards higher-margin revenue streams.
- The company's working capital days improved to 76 days, with a target to further reduce it to 72 days in the coming quarters.
- Pennar Industries Ltd (BOM:513228) has a strong order backlog in key growth areas such as pre-engineered buildings, hydraulics, and process equipment, indicating potential for substantial revenue growth.
- The company faces challenges in collecting current assets from sectors it is transitioning away from, impacting working capital.
- Finance costs have increased due to higher interest rates, increased working capital, and term loans for growth capital.
- The profitability of subsidiaries remains flat due to increased raw material prices and lower revenue per metric ton.
- The company is experiencing revenue leakage from deprioritized business units, which may continue to impact overall revenue growth.
- There are concerns about the cyclicality of raw material prices, particularly in the US market, which could affect revenue and profitability in the short term.
Ladies and gentlemen, good day, and welcome to the Pennar Industries Limited Q4 FY24 earnings conference call hosted by PhillipCapital India Limited.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vikram Suryavanshi from PhillipCapital.
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Good morning, and very warm welcome to everyone. Thank you for being on the call of Pennar Industries Limited. We are happy to have with us the management of Pennar Industries for a question-and-answer session with the investment community.
The management is represented by Mr. Aditya Rao, Vice Chairman and Managing
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