Q2 2025 Shankara Building Products Ltd Earnings Call Transcript
Key Points
- Shankara Building Products Ltd (NSE:SHANKARA) reported a healthy steel volume growth of 25% year-on-year and a robust non-steel revenue growth of 35% year-on-year.
- The company achieved an overall revenue growth of 15% year-on-year, reaching INR2,620 crores for the half year.
- Shankara Building Products Ltd (NSE:SHANKARA) has a strong distribution network with leading brands like APL Apollo, AM/NS, and JSW, aiding in achieving growth targets.
- The company successfully operationalized four new fulfillment centers in H1, enhancing its distribution capabilities.
- Shankara Building Products Ltd (NSE:SHANKARA) maintained operational profitability despite a challenging macro environment, with an EBITDA growth of 11% year-on-year.
- The company faced a slowdown in the construction and infrastructure segments due to heavy rains and election-led slowdown, impacting demand.
- Steel prices softened substantially, leading to an approximate 10% downward correction, which impacted profits.
- The company's profitability was affected by inventory loss due to falling steel prices and increased costs in branding and marketing.
- Interest costs increased, partly due to higher interest-bearing trade payables, impacting financial performance.
- The company faces strong competition from new players, which could pressure margins and market share.
Ladies and gentlemen, good day, and welcome to Shankara Building Products Limited Q2 FY25 earnings conference call hosted by Dolat Capital.
(Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Varun Jain from Dolat Capital. Thank you, and over to you, sir.
Thank you. Good morning, everyone. So today, we have been joined by the management team of Shankara Building Products. So we have Mr. Sukumar Srinivas, Managing Director; Mr. C. Ravikumar, Director; Mr. Dhananjay Srinivas, Vice President; and Mr. Alex Varghese, CFO. I would now hand over to Mr. Dhananjay for opening remarks, followed by them. We'll have the Q&A. Thank you. Over to you, sir.
Thank you. A very good morning and a very warm welcome to Shankara Building Products Limited earnings conference call for the quarter ended September 30, 2024. Joining me today are Mr.
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