Q4 2024 Steelcast Ltd Earnings Call Transcript
Key Points
- Steelcast Ltd (BOM:513517) maintained a strong EBITDA margin of 29.3% during Q4 FY24, despite challenging geopolitical conditions.
- The company achieved a PAT margin of 19% in Q4 FY24, consistent with the previous quarter and an improvement from 16.2% in the corresponding quarter of the previous year.
- Steelcast Ltd (BOM:513517) has been debt-free for the past three years, indicating prudent financial management.
- The commissioning of hybrid and solar power plants has led to significant savings in power and fuel expenses, contributing to strong EBITDA and PAT growth.
- The company is well-positioned to diversify into newer sectors such as railroad, ground engaging tools, and defense opportunities, anticipating substantial revenue growth in the coming years.
- Revenue for Q4 FY24 declined by 18.2% compared to the corresponding quarter of the previous year, primarily due to adverse geopolitical and business conditions.
- The overall revenue for FY24 decreased by 14.1% compared to the previous year, attributed to reduced economic activity in Western and North American countries.
- The working capital cycle increased to 90 days from 64 days, indicating potential inefficiencies or delays in the business process.
- The company anticipates a subdued Q1 and Q2 in the current financial year, with an uptrend expected only from Q3 onwards.
- There have been delays in the ramp-up of the North American railroad segment, which is expected to contribute significantly to future revenue.
Ladies and gentlemen, good day, and welcome to the Steelcast Limited Q4 and FY24 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Ronak Jain from Orient Capital, their Investor Relations. Thank you, and over to you, Mr. Ronak Jain.
Thank you. Good afternoon, everyone. Welcome to the Q4 and FY24 earnings conference call of Steelcast Limited. Today on this call, we have Mr. Chetan Tamboli, Chairman and Managing Director; Mr. Rushil Tamboli, Whole Time Director; Mr. Subhash Sharma, Executive Director and Chief Financial Officer; and Mr. Umesh Bhatt, Company Secretary.
Before we begin this call, I would like to give a short disclaimer. This call may contain forward-looking statements about the company, which are based on beliefs, opinion, and expectations as of today. Actual results may differ materially. These statements are not guarantees of future performance and involve unforeseen risks and uncertainties
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