Q1 2025 Alicon Castalloy Ltd Earnings Call Transcript
Key Points
- Alicon Castalloy Ltd (BOM:531147) achieved its highest-ever quarterly revenue of INR440 crore in Q1 FY25, marking the third consecutive quarter surpassing the INR400 crore milestone.
- The company reported a 24% increase in revenue from INR354 crore in Q1 FY24, driven by scaling up production for new parts, particularly for passenger and commercial vehicles.
- EBITDA for Q1 FY25 was INR58 crore, a 46% increase from INR40 crore in Q1 FY24, with an improved EBITDA margin of 13.2% compared to 11.3% in the previous year.
- Alicon Castalloy Ltd (BOM:531147) has successfully diversified its customer base, adding prestigious global names including leading OEMs and Tier-1 companies.
- The company is making significant strides in new technology platforms, expanding into new geographies, and focusing on value engineering and capability enhancement, which are positively impacting its business.
- Employee costs have risen by 19% year-on-year, driven by increments, a rise in minimum wages, and costs of new hires aligned with operational growth.
- Finance costs increased by 9% year-on-year to INR10 crore due to increased borrowing, although they are lower by 5% on a quarter-on-quarter basis.
- Depreciation rose by 22% year-on-year to INR22.44 crore, driven by new asset additions comprising machines and tools added or replenished in production lines.
- The EBITDA margin moderated from 14% in Q4 FY24 to 13.2% in Q1 FY25, despite the rise in employee costs and other expenses.
- There were temporary additions in European operations that drove up employee costs, impacting overall profitability.
Ladies and gentlemen, good day, and welcome to the Alicon Castalloy Limited's earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mayank Vaswani. Thank you, and over to you.
Thank you, Yashashri. Good morning everyone, and thank you for joining us on Alicon Castalloy Limited's Q1 FY25 earnings conference call. We have with us on the call today Mr. Vimal Gupta, Group CFO; Mr. Shyam Agarwal, Chief Marketing Officer; and Mr. Rajiv Gupta: Head of Domestic Business of Alicon Castalloy Limited. Mr. Vimal Gupta: will cover the operating highlights and financial performance for the quarter, following which Mr. Agarwal will walk us through the operating highlights. Mr. Rajiv Gupta will provide insights on domestic business. Thereafter, we shall open the call for the Q&A session.
Before we begin, I would like to point out that some of the statements made in today's call may be forward-looking in nature, and a
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