July 2023 Conf Call Notes
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Record Sales: Kriti Industries achieved the highest sales volume to date in the first quarter of 2024, with the total standing at 25,473 metric tons.
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Net Profit: The company reported a net profit of INR 7.8 crores, with a margin of around 2.79%.
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EBITDA Margins: The company’s EBITDA margins have not grown significantly due to a continuous decline in prices during the quarter. However, management is optimistic about improvement as prices have begun to rise in recent weeks.
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Building Products: The company achieved substantial volume growth in the building products sector. They plan to continue investing in marketing as volumes increase.
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Agriculture Segment: The company has seen significant growth in Maharashtra, Rajasthan, and Madhya Pradesh and achieved some penetration in southern states.
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Inventory Loss: The company incurred an inventory loss of about six to seven crores in Q3, primarily due to falling PVC resin prices.
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Future PVC Prices: Management is optimistic about the stabilization and growth of PVC resin prices, contributing to their overall growth.
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Growth Projections: The company is anticipating a straight 10% growth for the year-end.
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Capital Expenditure: Questions were raised about the company’s plans to expand its distribution in building products and the related capital expenditure for the year.
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Marketing & Branding: The company is focusing on Below The Line (BTL) marketing and strengthening its distribution network in new areas.
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Industrial Volumes Growth: Management has set a target of at least 10% growth for the remaining three quarters of the year.
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New Plant: Management hinted at the possibility of setting up a new plant in the south, depending on volume growth.
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Agri Volume Growth Outlook: For the agriculture segment, the management is optimistic about the volume growth for the rest of the year.
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Anti-Dumping Duty on PVC Resins: The company is monitoring the industry’s efforts to reinstate the anti-dumping duty on PVC resins, especially from China, which expired last year. The reinstatement could positively affect their margins.
