Key highlights from Anup Engineering Q4FY23 concall
CMP - ₹1460
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CMP - ₹1460
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• The management expects the company to continue growth of 25-30% with an annualised EBITDA to be consistent around 22%. The export is expected to grow to 30% of the revenue as compared to 19% in FY23 and they aim to take this export portion from 30% to 40% by FY25.
• The working capital has improved from 155 days to 148 days. The Company is almost debt free even after the new investment in the facility at Kheda.
• The new facility at Kheda is ready and the trial production is on. This facility is about 40 km from the existing facility
• The new facility at Kheda is ready and the trial production is on. This facility is about 40 km from the existing facility
in Odhav. This will help them boost revenues in Q3 and Q4 with the first dispatch from that plant expected in August 2023
• This new Kheda facility is on the highway which opens up a larger product basket. As the Odhav facility had a limitation in terms of the height of the
• This new Kheda facility is on the highway which opens up a larger product basket. As the Odhav facility had a limitation in terms of the height of the
equipment that it could move out mainly because it is landlocked,the flyovers and being in the city. Now this new facility could move equipment even up to a diameter of 7-7.5 meters
• In the first year of the plant, the revenue of about ₹60 crores is expected. Going forward from next year it can give a turnover of more than ₹160 crores. But it will also depend on the product portfolio that they are able to get from the market.
• Roughly about ₹120 crores of total capex for Kheda. ₹47 Crores is for FY24 and ₹70 was for FY23.
• The current loan cost is 8.5%, but after the subsidy from Gujarat Industrial Policy will bring down interest cost to 7% roughly that is 1% of the total capex.
• The current loan cost is 8.5%, but after the subsidy from Gujarat Industrial Policy will bring down interest cost to 7% roughly that is 1% of the total capex.
That will bring down the capex loan cost.
• The Anup Engineering has booked a new order worth ₹530 Crores in FY23. And ₹150 Crores till date in FY24. Most of them are executable in FY25.
• The Anup Engineering has booked a new order worth ₹530 Crores in FY23. And ₹150 Crores till date in FY24. Most of them are executable in FY25.
• Oil and gas, and petrochemicals have always been the dominant portion in Anup’s revenue. But the chemical industry is also growing and lends a lot of growth for them.
• The company intends to move up the value chain in terms of metallurgy. Today they have a carbon steel predominant portion, they would want to move to exotic material because that will give them a larger turnover for the same space
• There are 3 or 4 products which they are in discussions currently which will help them move up the value chain in terms of product portfolio
Management says, moving into proprietary items would come with a little better margin but more importantly with a lesser competition.
Management says, moving into proprietary items would come with a little better margin but more importantly with a lesser competition.
• In the Domestic market, Anup Engineering is amongst the Top 4 in terms of making such complex equipment, static equipment for oil & gas. The company has a higher win rate as compared to the competition.
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