Gravita India Ltd conducted their Q3 FY23 earnings conference call on 24th January 2022
Here are the key highlights 👇🏻👇🏻👇🏻
Here are the key highlights 👇🏻👇🏻👇🏻
• Overview:
- The step-down subsidiary of co. located in West Africa began commercial production of aluminum cast alloys from a recycling plant. Co. anticipates the expanded capacity would provide additional revenue of Rs.60 cr per annum with gross margin of app 26%
- The step-down subsidiary of co. located in West Africa began commercial production of aluminum cast alloys from a recycling plant. Co. anticipates the expanded capacity would provide additional revenue of Rs.60 cr per annum with gross margin of app 26%
⁃ Some of the capacities have already been installed with Senegal aluminum & Togo aluminum has just come up in Dec, this will start giving full results from this quarter
- Some of the capacity that co. is planning to bring is Chittoor and Ghana - lead & also aluminum - Ghana
- Some of the capacity that co. is planning to bring is Chittoor and Ghana - lead & also aluminum - Ghana
⁃ Co. is planning to reach to around 425,000 metric ton capacity. This include capacities for paper recycling also
• Financials:
- Co. continued to maintain strong margins despite rising cost in major raw materials in the quarter
- Working capital cycle is approximately 80 days. Co. aims to bring it down to 65 days in next 2 years
- Co. continued to maintain strong margins despite rising cost in major raw materials in the quarter
- Working capital cycle is approximately 80 days. Co. aims to bring it down to 65 days in next 2 years
⁃ Major driver for low working capital cycle is more sourcing from domestic market. In this quarter co. has grown domestic sourcing by 12%
- Currently the debt is approximately INR315 crores. But going forward there will be no increase in debt because of the capex
- Currently the debt is approximately INR315 crores. But going forward there will be no increase in debt because of the capex
⁃ So there may be some increase of debt because of the increased requirement of the working capital
• Capex:
- Co. spent Rs88 cr on capex in 9 months for FY23.
- Capex is anticipated to be about Rs20 cr for remainder of year
- Capex is being done to expand the existing as well as established new capacities
- Majorly all the capex is being funded from the internal accruals
- Co. spent Rs88 cr on capex in 9 months for FY23.
- Capex is anticipated to be about Rs20 cr for remainder of year
- Capex is being done to expand the existing as well as established new capacities
- Majorly all the capex is being funded from the internal accruals
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