Q1 2025 Shankara Building Products Ltd Earnings Call Transcript
Key Points
- Shankara Building Products Ltd (NSE:SHANKARA) achieved a steel volume growth of 20% year on year.
- Non-steel revenue grew by 35% year on year, driven by all subsegments including plumbing, fittings, sanitaryware, tiles, electricals, paint, hardware, and accessories.
- Overall revenues grew by 14% year on year, reaching INR1,291 crores for the quarter.
- The company's EBITDA margin for the non-steel segment improved to 6.5%, with gross margins standing at around 10% to 12%.
- Shankara Building Products Ltd (NSE:SHANKARA) continues to grow aggressively in the Western and Central regions, with Maharashtra and Madhya Pradesh witnessing a 52% year-on-year growth in revenues.
- Retail footfall was down this quarter due to slow construction activity amid elections and monsoons.
- Finance costs increased significantly due to higher acceptances, resulting in a profit after tax of INR16 crores.
- The company faced weak cash flow in the sector and rapid expansion into West and Central regions, leading to increased receivables.
- The steel segment's revenue growth was limited to 12% year on year due to softening steel prices.
- The manufacturing segment incurred a loss this quarter, primarily due to the softening of steel prices and bad cash flows in the market.
Ladies and gentlemen, good day, and welcome to Shankara Building Products Q1 FY25 earnings conference call, hosted by Arihant Capital. (Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Miraj Shah from Arihant Capital. Thank you, and over to you, sir.
Hello. Good day, and good afternoon to everyone, and thank you for joining on the Shankara Building Products Q1 FY25 earnings conference call. Today from the management, we have Mr. Alex Varghese, the CFO; Mr. Dhananjay Mirlay Srinivas, Vice President; and Mr. C. Ravikumar, Executive Director.
Without further ado, I'll hand over the call to Mr. Dhananjay for his opening remarks. Over to you, sir.
Thank you. A very good afternoon, and a very warm welcome to Shankara Building Products Limited earnings conference call for the quarter
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