Conference Call - from Capital Markets
Expects building products to riseat 15-16%and glass business at 11-12% in FY16
The company has conducted a conference call on 20th May 2015 to discuss the financial performance for the fourth quarter ended March 2015 and FY15 and way forward. Mr. R. B. Kabra (President –Building Products Division), Mr Sandeep Sikka (Chief Financial Officer)and Mr. Anil Chandani (Senior Vice President -Corporate Finance) of the Company addressed the conference call.
Key highlights
• The Company Q4FY15 figures were not comparable with the corresponding previous quarter pursuant to the scheme of amalgamation between Garden Polymers and HSIL being approved on 13 March 2014. Therefore the standalone results for the Q4FY14 incudes figures of the amalgamated company for full FY2014 while standalone results of the company for Q4FY15 includes figure of the amalgamated company.
• The Company has successfully raised Rs 250 crore by QIP and used the proceeds for repayment of debts.
• The Company debt on book was Rs 680 crore as on fourth quarter ended March 2015. Average cost of borrowing stood at 8.5%.
• The Board of Directors of the Company has recommended payment of Dividend @ 175% i.e. Rs. 3.50 per equity share of Rs. 2/- each for the year ended March 2015.
• The Company generates nearly 38% of revenue from India's top ten cities. Subsidiaries sales improved by 10%.
• The Company sanitaryware plants utilization at 88-89%, faucet plants utilization at45%, and container Glass (CG) Plants utilization (based on all four furnaces) at 74% for FY15. The company expects faucet plants utilization to increase to 60-65% in FY16
• The Company has sanitaryware plants at Bahadurgarh (Haryana) with installed capacity of 1.8 million pieces/pa and Bibinagar (Telangana) with installed capacity of 2 million pieces/pa. The Company plans brownfield expansion of 1 lakh pieces/pa at Bahadurgarh (Haryana) facility and 3 lakh pieces/pa at Bibinagar (Telangana) facility, which likely to complete by end of FY16 or by Q1FY17.
• The Company expects building product business to grow 15-16% and glass business to grow 11-12% in FY16.
• HSIL has entered into a distribution agreement with Groupe Atlantic (France) for distribution in India of water heaters manufactured by Atlantic International, an affiliate of Groupe Atllantic. The water heaters will start distributed by end June FY16under the Hindware Atlantic brand.
Disc: Not Invested.