Another good set of results, with sales and EPS growing by 15%. Company has scaled their composite CNG and LPG cylinders to 345 cr. and are now hoping to cross 500 cr. in FY24. Concall notes below
FY23Q4
- Sales: 4289 cr. (2831 cr. domestic + 1458 cr. overseas). Targeting 15% growth in FY24
- Capex: 223 cr. (87 cr. towards established products + 137 cr. towards value-added products)
- CNG cascade capacity of 480 cascades (28’800 cylinders; 300 cr. potential sales & 90% utilization) has come onstream and is fully sold out (current order book of 260 cr.). Phase II expansion will be fungible between hydrogen and CNG cylinders
- Divestment of overseas assets will finalize by September 2023, currently looking at alternate options as well (like selling assets in different geographical markets to different customers)
- ROCE will be 15-16% in FY24 and exceed 20% in 3-years (without taking divestments into account)
- Overseas split: Asia (50%), Middle East (34%), USA (16%)
- Rate of interest is 9.25% (blended with overseas). Has increased by 1.5%
Disclosure: Invested (position size here, no transactions in last-30 days)