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%
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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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Q1FY25 Concall Summary
Business Updates
- Pending orderbook stands at Rs 810 crore as on June 2024
- Of total Q1 revenues Rs 8 crore was billed from Kheda plant and with the current plan in place this plant will bill Rs 175 crores in FY25
- The revenue from the acquired business “Mabel” will deliver revenues of Rs 50 crore for FY25
- The design operations at Vadodara is a 50 member team and the wish is to grow this to a bigger size
- With the current capacity in place the company can deliver revenues of approximately Rs 1000 crore
- The strategy to expand geographically to newer customers and countries will keep continuing
- For FY25 based on existing order book revenues should be Rs 700 crore with an EBITDA margin of 20% plus
Participants
Abakkus Asset Managers
Samasa Capital
Shubh Labh Research
QnA
- The pending orderbook should end FY25 at around Rs 900 crores
- The total capacity put together at all three plants should have a revenue potential of Rs 1000 crore with Mabel contributing Rs 50 crores
- Around end of CY25 will take a call on building phase 2 at Kheda and construction period is around 11 months for the same for constructing one additional bay
- Each new bay at Kheda shall cost Rs 40-50 crore and it should give an asset turnover of around 3-4 times
- On an annualized basis around 20-30% of the order execution is from hydrogen sector and of this majority will be exports to USA, Canada and NEOM project in Saudi Arabia
- The project for Saudi Arabia was the first time company executed a project in the green hydrogen space in Saudi Arabia
- The production will now be segregated as the Ahmedabad plant making heat exchangers only and the Kheda plant will make reactors, column and vessels
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Just wondering will this not be called insider trading? like relatives buying just before the results?
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Hi, Which platform can one see these transactions on ? Excuse me I am new to this and learning. Thank you.
Rupeevest, Morningstar, Trendlyne
Did anyone attend concall?
Q3FY25 Concall Summary:
Performance:
Sector-wise Q3 FY25:
- Hydrogen: 45%
- Petrochemicals: 20%
- Oil & Gas: 17%
- Fertilizers: 14%
Hydrogen Business Contribution
- 30% of YTD revenue from hydrogen-related projects.
- Q3 FY25 saw 45% revenue from hydrogen, expected to normalize to 30-32% for the full year.
- Majority from blue hydrogen, with a smaller share of green hydrogen
Product-wise Q3 FY25:
- Heat Exchangers: 57% (Ahmedabad plant)
- Vessels, Reactors & Columns: 42% (Kheda plant)
Geographical Revenue (9M FY25, revised):
- Domestic: ₹208.4 Cr (41.4%)
- Exports: ₹258.4 Cr (51.3%)
- SEZ & Deemed Exports: ₹36.6 Cr (7.3%)
Mabel Engineers Performance
- Q3 FY25 revenue subdued as major deliveries are planned in Q4.
- 9M FY25 revenue: ₹26 Cr, on track for ₹50 Cr full-year target.
Gross Margin Expansion Drivers
- Higher export mix improved forex gains.
- Hydrogen projects use exotic materials, leading to lower competition and higher margins.
Capacity Expansion at Kheda:
- Phase 2 expansion underway (1 new bay + open yard); Operational by Q3 FY26.
- Will have ₹400 Cr annual revenue capacity from Kheda after phase 2, 33% of the total master plan (₹1,200 Cr).
- Final capacity: 7 bays, supporting ₹1,200 Cr revenue.
- Self-Funded Expansion: The ongoing Phase 2A expansion at Kheda is being funded entirely through internal accruals.
Revenue Potential: Current Manufacturing Capabilities: Ahmedabad, Kheda, Tamil Nadu together can support ₹1,000 crore revenue
Post-expansion (including the ongoing construction), capacity will increase to ₹1,200 crore.
Kheda Plant Expansion & Revenue Potential
- Phase 1: Two bays are already commissioned and operational.
- Phase 2: Construction has started on two additional bays (one fully covered, one open yard).
- By September 2025, there will be a total of four bays: three covered and one open yard.
- The total revenue potential from the Kheda facility is projected at ₹400 crore.
FY25 Outlook:
- Targeting ~30% revenue growth with ~23% EBITDA margin.
- Exports to exceed 50% of revenue (51% in 9M FY25).
- Order book as on January 31, 2025 is ₹831 Cr , with ~₹600 Cr executable in FY26
- Mabel is expected to contribute around ₹50 crore revenue in FY25, with ~15% EBITDA margin.
- Expects to close FY25 with Standalone revenue of ₹725 crore, maintaining a 30% YoY growth.
- Mabel will contribute another ₹50 crore, though ₹20 crore won’t reflect in consolidated revenue due to timing of the share transaction.
- Consolidated FY25 revenue is projected at ₹750 crore .
- Q4FY25 revenue expectation: ₹240-250 crore (Anup + Mabel).
- Projects are lined up, with dispatch schedules in place to achieve Q4 targets.
FY26 Growth Guidance:
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Export Order Intake Run-Rate: Expected ₹110-115 crore export orders per quarter
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Revenue growth of 25-30%
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EBITDA margin over 20%
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EBITDA margin guidance at 20%+ vs. 23%+ in FY25, with a conservative approach prioritizing growth.
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Exports to remain 50-55% of total revenue.
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Strong export inquiries, domestic market sluggish but improving.
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Indian PLC (Petrochemical & Refining) projects yet to materialize; expected in 6–8 months
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Global projects delayed due to geopolitics, policy uncertainties.
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Hydrogen, gas, and energy transition projects remain key global opportunities.
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Inquiry pipeline of ₹900 crore, with 70% from exports.
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Strong demand from hydrogen (U.S., Canada, Europe) and gas projects (Middle East).
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Domestic growth led by petrochemical projects (Reliance, Adani) and upcoming PSU refinery/petrochemical projects.
Miscellaneous:
Fixed-Term Contracts & Raw Material Price Volatility
- Anup Engineering operates only on fixed-price contracts.
- Cost components are built into estimations at the initial stage.
- For critical orders where price volatility is a concern, back-to-back agreements with vendors are made to mitigate risk.
- This ensures protection against raw material price fluctuations.
Capacity Utilization: Current overall capacity utilization is approximately 70-75%.
Seasonality Impact on Quarterly Performance
- Q1 & Q3 tend to be weaker due to festivals and absenteeism.
- Q2 & Q4 are peak quarters with full operational efficiency.
- Q4FY25 is expected to be exceptionally strong due to project completions and high dispatch volume.
Management is exploring more long-term manufacturing partnerships like Graham. Such tie-ups ensure stable order inflows rather than competing for each order.
Reason for low tax rate: lower tax rate due to some tax reversals of last year and ESOPs being exercised by a few members.
Net Debt-Free: The company remains net debt-free.
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Hi there folks, just wanted to know if there is any impact or potential challenges of Trump tariff scenario on this company? Last 3-4 days the price action seem to be not that great which may indicate that there’s some fear. Thanks
ANUP’s export revenue was 46% in the last quarter and the company is targeting to achieve 50% by year-end. Of course, there is likely to be some impact due to the ongoing tariff issues, as they also supply to the United States. If an investor has a long-term perspective on this company, they should not worry about daily, weekly, or even monthly price movements. One should only buy if they believe the stock is at a cheaper valuation and closely track the business performance. Don’t worry about price movements as long as you feel that the growth story remains intact.
Disc - Invested at lower levels
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