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Sahyadri Industries
hosted conference call on February 07, 2025. In the conference call the company
was represented by Mr Tuljaram R Maheshwari – CEO, CFO and Whole time Director.
Key takeaways of the call
Q3FY2025
Total income in
Q3FY2025 stood at Rs 131.7 crore when compared to Rs 106.8 crore in Q2FY2025
and Rs 136.3 crore in Q3FY2024.
EBITDA stood at Rs 9
crore in Q3FY2025 as against Rs 13.8 crore in Q3Fy2024.
EBITDA margin stood at
6.8% in Q3FY2025 as against 10.1% in Q3FY2024.
PAT stood at Rs 0.8
crore as against Rs 3.2 crore in Q3FY2024.
9MFY2025
Total income in
9MFY2025 stood at Rs 456.2 crore when compared to Rs 483.7 crore in 9MFY2024.
EBITDA stood at Rs
44.2 crore in 9MFY2025 as against Rs 55.8 crore in 9MFY2024.
EBITDA margin stood at
9.7% in 9MFY2025 as against 11.5% in 9MFY2024.
PAT stood at Rs 15.2
crore as against 22.1 crore in 9MFY2024.
Market share: There is no change in the market share of the company.
Profitability: Lower utilization coupled with the company not
able to increase prices due to subdued demand has resulted in lower volumes and
profitability.
Ocean Freight prices;
Ocean freight cost has declined from January 2025 and the company expect it to
remain at similar levels in Q4FY2025.
Value added products: Value added products contribution to revenue stood
at 12% in Q3FY2025 and 14% in 9MFY2025
Capacity Expansion:
Company is in process
of setting up a new unit in Orrisa state for manufacturing Asbestos Corrugated
Sheet of 1,20,000 MT. The company is in the process of acquiring the land and
expects the commissioning of the plant in Q4FY2025.
Activities related to
setting up a new unit in Maharashtra state for manufacturing of Non Asbestos
Cement Boards plant having capacity of 72,000 MT have been initiated. Land has
been identified and land acquisition is in process and the company expects the
land acquisition to be completed in next 3-6 months. The company expects it to
be completed by FY2026.
Outlook: Q4 and Q1 of the financial year is good for the company with respect to
demand. The compny is witnessing positive vibes from February beginning with
respect to demand. Monsoon is also good as such the company expects pick up in
demand.
The company imports
fiber from Khasakistan and expects the same to be impacted in Q4FY2025 due to
rupee depreciation.
Management
Commentary:
Commenting on the results and performance
Mr Satyen Patel, Managing Director of Sahyadri Industries Limited, said:
“The company reported a total income of
₹456.2 crore in 9MFY25, on account of sluggish demand and continued weakness in
the rural economy. The extended monsoons in western India especially Gujarat
and southern India, along with the cyclone in Tamil Nadu, impacted the
company''''s overall performance.
Stabilization in raw material costs has led
to a 180 bps YoY improvement in gross margin to 43.7% in 9MFY25. However,
EBITDA margin was impacted primarily by
rising ocean freight costs.
Capacity utilization stood at 67% in
9MFY25, compared to 73% in the same period last year, as we continue to
optimize operations in line with demand trends.
Moving ahead, on recovery of rural economy,
we are well-equipped to drive growth and capitalize on emerging opportunities”
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