Sukhjit Starch & Chemicals Ltd (BOM:524542)
₹ 250.25 -2.4 (-0.95%) Market Cap: 7.82 Bil Enterprise Value: 10.25 Bil PE Ratio: 14.86 PB Ratio: 1.57 GF Score: 91/100

Q1 2025 Sukhjit Starch and Chemicals Ltd Earnings Call Transcript

Aug 08, 2024 / 05:30AM GMT
Release Date Price: ₹250.4 (-2.84%)

Key Points

Positve
  • Revenue from operations increased by 21% year-on-year to INR389.83 crores, driven by higher sales volumes.
  • EBITDA improved by 9% year-on-year to INR31.5 crores, reflecting enhanced operational efficiency.
  • Net profit for the quarter rose by 4.4% year-on-year to INR13.61 crores, indicating robust financial health.
  • The company is progressing well with its current expansion project, with partial commissioning expected to start from Q3.
  • Plans to expand production capacity by 1,000 tonnes over the next three years, elevating total capacity to 3,000 tonnes per day.
Negative
  • EBITDA margin stood at 8.07%, which is lower compared to industry leaders.
  • Historical inconsistency in growth rates, with periods of single-digit growth following strong years.
  • Challenges in maintaining consistent margins due to fluctuations in maize prices, which is a key raw material.
  • Environmental regulations in China and other regions could impact export dynamics and profitability.
  • The company faces competition from larger players with more efficient plants, affecting its market share and margins.
Operator

Ladies and gentlemen, good day, and welcome to The Sukhjit Starch & Chemicals Limited Q1 FY25 earnings conference call. (Operator Instructions)

Please note that this conference is being recorded. I now hand the conference over to Mr. Aman Setia. Thank you, and over to you, sir.

Aman Setia
Sukhjit Starch and Chemicals Ltd - Compliance Officer, Vice President - Finance, Company Secretary

Good morning, ladies and gentlemen. I am Aman Setia, Vice President, Finance and Company Secretary at The Sukhjit Starch. On behalf of The Sukhjit Group, I would like to extend a warm welcome to all of you for joining us for today's call to discuss our Q1 FY25 results. We truly value our ongoing support and commitment. We want to assure all of our current and prospective investors that we are dedicated not only to achieve strong operational and financial performance, but also to uphold the high standards of transparency and best practices.

I trust, you have reviewed our Q1 FY25 financial results which are available on the stock exchange as well as on our

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