Tega Industries held a conference call on 14 November 2024 to discuss the results for the quarter ended September 2024 and way forward. Mr. Mehul Mohanka - MD & Group CEO, Mr. Sharad Kumar Khaitan – CFO and Mr. Pratik Basu Roy – President – Product Management, Global Sales & Marketing of the company addressed the call.

Highlights of the Concall

• Q2 revenues fell 6% to Rs 353.3 crore while OP fell 58% to Rs 34.35 crore.NP fell 85% to Rs 7.22 crore. The company mentioned that there have been certain delays in shipments and deployment of orders by customers, which it is confident of recouping in the next few quarters. It is holding on to its year-end estimates and guidance as given earlier of around 15% growth.

• Apart from delays in shipments and deferment of the orders by the customers, the group sales were also impacted in the current quarter due to receipt of payments, healthy inspection reports and dispatch clearance certificate from few of its customers.

• The EBITDA margin has been muted with the contract accounting leading to a one-time expense in Q2, which has been charged-off in the current quarter.

• The company has firm order book at a group level of Rs 605 crore as at September 2024 end.

• The company believes that the copper demand shall be increasing due to a combination of three key themes, i.e. traditional economic growth and the newer themes of energy transmission and digital, which are primarily the data centers. While the traditional demand provides a solid foundation, the rapid acceleration of growth expected for the decades to come shall be driven by the energy transition and digital trends.

• Energy transition refers to the additional copper required to achieve that level of electrification. As the most conductive industrial material, copper is a key enabler of low GHG emissions and energy resources such as wind, solar and hydro as well as electric vehicles and batteries.

• The company is also very bullish on gold prices driven by its human status amidst global economic challenges fueled by geopolitical tensions, inflation and economic slowdown concerns.

• The company mentioned that generally H2 is always better than H1 in terms of its performance both in revenue and profitability margins.

• The company has started the construction in the Chile project. The company expects commercial production from Chile project to be around Q2 of FY26.