Company came up with decent nos, sales and profitability reached FY19 levels. Management is confident of growing sales @15% past 4000 cr. in FY23. Concall notes below
FY23Q1
- Expect 15% revenue growth in FY23 and should cross 4000 cr.
- Capex was 48.5 cr. (34 cr. for value added + 14.5 cr. for existing products which is mostly maintenance in nature)
- 60-70% of LPG cylinder capacity is booked by IOCL. Q1 revenues were muted for LPG due to floods in certain regions. The division is running at 90% capacity utilization
- Composite cylinders (LPG + CNG) should exceed 350 cr. in FY23 (planning for sales of 950’000 LPG cylinders + 225 cascades)
- Current cascade capacity is 20/month which should increase to 25/month in next-6 months. This capacity addition will cost ~130 cr.
- Based on current LPG capacity (~1mn cylinders out of theoretical capacity of 1.4mn), can do sales of 230-240 cr. (realizations of 2300-2400). Expansion of 1mn cylinders (~90 cr. cost) is only planned and will execute it as they get better order visibility
- Have slowed down CNG cascade order booking as they are running as full capacity
- Complete benefit of additional LPG + CNG cascade capacity will reflect in FY24
- Expansion for CNG on-board will happen in next phase after the current capex of CNG cascade. Focus will be more towards passenger cars as that is a high value segment
Disclosure: Invested (position size here, bought shares in last-30 days)