2022-05-02 07:56:58
Apcotex industries Ltd Q4fy22 Conference call (received as fwd, source unknown)
Business overview
- The company has delivered strong growth on QOQ and on YOY basis.
- They have reached their historic highs in their financials parameters.
- This growth was strongly driven by high volumes across all the geography products.
- And also increase in their realisation.
- Their exports also contributed a significant amount and has grown to 21% compared before.
- Company is not on a number target range but is more towards what they are on fundamental basis.
- Since 2018, lots of flexibility and management changes are been made for better performance.
- Their bold decision with new products and strong hold on volumes, and per ton levels they expect to grow their business 2.5 times in times to come.
- They are more focused towards their margins then revenues.
- On margins sustainable, There could be a fall due to any market, geographic situation outside, yes there have been tailwinds that company have faced but on average they are able to sustain their levels.
- On product mix, their rubber and latex is still in the same range of 40%:60% approximately.
- Company did had small business in Russia and Ukraine but it didn’t has big impact on them.
- Ban on Russian materials imports had a bit effect on company but things were normalised.
- China and Covid situation also had a negative impact on business but still the company is bullish on their business.
Innovations and expansion’s
- The work on new expansion project is running on key segments and is expected to be completed by Q3 of fy23.
- In apco-build it is currently present in 4 places
Maharashtra
Gujarat
Goa
Madhya Pradesh
- No new place is added for now.
- In terms of volumes, it has touched new high, the company will specify its growth post it reached their benchmark levels.
- On Capex , they are not delayed anything internally but on their supplier front.
- Their plants are expected to get completed and run in Q2 period itself.
- On NBR project, the final approval is yet to come. As per their strategic planning they will reevaluate things before executing things.
- Their project in Walia is for the glove functioning and in Paloja it’s a multi purpose latex plant.
- For volume growth in short term there is not plan for now but they are expecting this to be taken care of soon.
- Their major capacity will be jumped up in Q3.
- The company did incremental Capex for small debottlenecking which is fully utilised now.
- For both Capex, the company is expected to get both their phases approved by EC by end of quarter.
- Company has acquired a firm which helps company in technological advances, acquiring new target products and improved innovations.
- As far india market is concerned, company is able to grow its market share at a stable pace and is expected to do the same.
Financials
- In Q4 their revenue from operations grew by 48.5% on YOY basis.
- Their EBITDA grew by 51% on YoY basis.
- Similar upward trend was seen in the EBITDA margins and PAT levels as well.
- Their EBITDA per ton is up by approx 50% and 25% on YoY and QoQ basis last year. And compared to 18-19 they are at all time high.
- Their cash outflow for project is 190 crores total along with liquid discharge plant in Walia. Out of this 40% Is spend.
- This will hit balance sheet post completion of projects.
- On volume and value growth of sales 7 out of 11 is volume and rest is value.
- The 270-280 crores of run rate is expected for their raw material but there is lots of grey area for them.
- In trade receivables,lots of healthy credit days are been given due to heavy competition and it is expected that all issues will be solved in times to come
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