|
Birla Corporation
hosted a conference call on May 06,2024. In the conference call the company was
represented by Mr Sandip Ghose –MD and CEO, Mr Adity aSaraogi-Group Chief
Financial officer, MrRajat Kumar Prusty- Chief of Manufacturing & Projects
and Mr Kalidas Pramanik-Chief Marketing officer.
Key takeaways of the call
Q4FY2024:
Revenue for the
quarter stood at Rs 2682 crore as against Rs 2512 crore in Q4FY2023 up by 6.8%
YoY.
Sales volume stood at
4.85MT in Q4FY2024 as against 4.44 MT.
Volumes from Mukutban
plant was 2.5 lac tonnes in Q4FY2024 of which 65% of the volumes were sold in
Maharashtra.
Realization per ton
stood at Rs 5178 in Q4FY2024 as against Rs 5261 /ton in Q4FY2023.
EBITDA per ton stood
at Rs 964/ton in Q4FY2024 as against Rs 615/ton in Q4FY2023.
Fuel cost: Fuel cost stood at 1.66 per K cal in Q4FY2024.
FY2024
Revenue for the year
stood at Rs9748crore as against Rs8795crore in FY2023 up by 10.8% YoY.
Sales volume stood at
17.65MT in FY2024 as against 15.73 MT.
Realization per ton
stood at Rs 5204 in FY2024 as against Rs 5216 /ton in FY2023.
EBITDA per ton stood
at Rs808/ton in FY2024 as against Rs478/ton in FY2023.
Trade Sales: Trade
sales contribution stood at 71.5% of the total sales volume in Q4FY2024 and
72.4% for the full year. Decline in trade sales volume is on account of
increased demand from infrastructure and commercial sector.
Premium cement
contribution stood 55% and 54% of the
trade sales in Q4FY2024 and FY2024 respectively.
Anticipating a flat
pricing scenario, the Company had undertaken several initiatives for revenue
enhancement and cost optimization, resulting in significant achievements in the
following areas: premiumisation, geo-mix optimization, logistics, power and
fuel costs. These initiatives, Project Shikhar (for manufacturing operations)
and Project Unnati (for sales, logistics and marketing operations) have
resulted in gross savings of around Rs 66 crore and Rs 100 crore, respectively,
for the full year. Project Shikhar and Project Unnati remain a work-in-progress
and will lead to further improvement in efficiency and savings
Net Debt: Net debt reduced by Rs 600 crore when compared to last and stands at Rs
3003 cr as on March 31,2024 of which current maturities is around Rs 520 crore.
The company expects net debt to be below this
ending next financial year.
Lead distance:
In Q4FY2024 lead
distance stood at 349 kms including rail and road in total for the company .
For Mukutban plant the lead distance stood at 420 kms in Q4FY2024.
Incentives: The company expects incentives to the tune of Rs 110 crore in FY2025 as
against Rs 160 crore in FY2024. Kundanganj incentives has ended as on March
312024. FY2025 incentives will include Mukutban incentives for which
registration certificate is yet to be received.
Coal Mine:
Bikram Coal Mine is
expected to come on line in Q4FY2025 and Marki Barka Coal mine is expected to
come online in FY26-27.
Expansion:A Greenfield grinding unit of 1.4mtpa will be set up in Prayagraj, Uttar
Pradesh. This unit is expected to be commissioned by 1QFY26.
CAPEX: The company will spend Rs 800 crore towards capex in FY2025 of which Rs
400 crore is towards maintenance, Rs 200 crore is towards development of coal
mines and Rs 200 crores is towards grinding unit.
Freight cost:Freight cost declined 3% QOQ due to improved rail road mix and direct
dispatches.
Guidance: The company expects EBITDA per to increase by 8-10% per ton when compared
to Rs 808/ ton in FY2024.
The company expects
volume growth of 8-10% for FY2025.
Mukutban volumes to be
around 2.7 MT in FY2025.
The company expects
volumes to be subdued in Q1FY2025 due to election and extreme heat and in Q2FY2025
due to monsoons.
|