Anup has acquired 100% equity shares of Mabel Engineering Private Limited
Mabel is engaged in the business of Engineering,
fabrication, supply and erection and delivering
solutions for pressure vessels, reactors, storage
tanks, silos, heat exchangers, heavy structural
components, chimneys, and piping systems.
Turnover: INR 27.11 Crores (For the Financial
Year ended 31.03.2023).
SYNERGIES
• Expansion of Product Portfolio – Venturing into
additional products of silos, storage tanks and
other site fabricated process equipment.
• Geographical Spread – Provides a strong
geographical spread to cater to Southern part of
India and easy access to ports conducive for
exports to SEFE region.
• Engineering Bandwidth – Enhances our
engineering capabilities in to designing silos,
tankages and site fabricated solutions for
complex projects.
•Capacity Expansion – A strong catalyst to our
growth journey contributing ~10 to 12% of our
annual revenue. The dedicated manufacturing
bays for exotic materials provide ample
opportunities to manufacture and supply exotic
and high grade materials, allowing us cater to
larger opportunity basket.
This is a very important milestone
complimenting our recent capacity expansion at
Kheda (Gujarat), helping us accelerate our
growth journey.
Disc…invested
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Blockbuster set of results from Anup
Order book - Rs 854 Crores
EBIDTA of Rs 37 Crores, growth of 24%
Margin at 23.7% vs 20.9%
Net Profit of Rs 43 Crore, growth of 121%
Order book is 875 cr against annual turnover of 550 odd Cr
New acquisition and Kheda completion should add to capacity
I think orders are not a problem, capacity constraints may be.
Had attended Q4FY24 con call, would like to share higlights along with my comments:
Revenue & OB:
- Achieved all guidance i.e. 25-30% Revenue Growth and 20%+ EBITDA for FY24. In fact, looking at OB along with recent Mable acquisition - company is headed for 35% growth for FY25 while building OB for FY26 as well.
- OB stands at 854cr and 57.2% are exports. However, this is double-edged sword in terms of OB being fixed-priced contracts. So, Raw Material Booking on continous basis will be key to secure them at right costs.
- Management hinted that we could book at lot more OB but want to be within our executable limits (On-time delivery) and within our desired margins.
- Mentioned about reaching 1000cr. mark revenue in FY27.
CAPEX and Growth Initiatives:
- Company acquired Mable Engineering for 33cr. The annual revenue may touch 50-60Cr in FY25, this is based on single-shift basis meaning potential of revenue is lot more. Post FY25, company plans to really accelerate Mable Engineering.
- Mable is giving advantage of expanding product line into Silos, Geography Diversification, and making some of Anup’s equipment in Mable facility.
- Earlier, company planned to increase Kheda Facility with additional 0.5 bay. This will be done in Q1 and operational in Q2. On full-year basis the 2-bays currently at kheda will generate 200cr (For FY26).
- Company will go plan for Phase II expansion at Kheda by FY25-end. Facility will come in quickly and CAPEX willl be lower v/s Phase I because all utility around was build during Phase I.
- Company discussed plans to start Skids and Moulds in Phase-III. So, quite a crystal clear objective in terms of how to take this company forward step-by-step.
Other Important KTA:
- Exports are majorly into US and Middle East. Diversified the revenue and not dependend on one location…
- Exports have 30-40% advances, hence a lot of savings in terms of Working Capital. So, return ratios will improve a lot. Exports do have better margins but want to take FOREX fluctuation into account. Had FOREX been constant, the margins would be >20%.
Note: Have highlighted only the points which I think are important. Might have missed some of the remarks made by management.
My Take:
I am pretty happy with way company guided on exports. There will be better WC efficiency as 30-40% will be advances. There is possibility to achive >20% EBITDA on exports. Hence, with Mable, it looks 35% revenue growth is within reach for FY25. And, on top the quality of earning is a big plus as the cash conversion is prestine.
Discl: Invested.
Regards,
Mukul Jain
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This has been a good special situation aka demerger to be invested in.
I think Arvind group is preparing for another suc opportunity.
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Another such opportunity?
Which one? Envisol?
Advanced Materials Division which is being separated into WOS…
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