Key Highlights

FY 18 was the first year where both Visaka Ind and Asbestos industry in general saw a volume growth after 4 years. Industry grew by around 4% and Visaka had grown by around 5%. FY 18 becomes a base year on which management expects a single digit growth of around 5-6% to continue for the next couple of years for Asbestos industry as a whole.

Raw material prices are stable and the asbestos industry as a whole is capable of passing on any price increase in raw material if any going forward.

Boards and Panels overall volume growth was around 5%, largely due to 25% fall in exports while domestic business grew by around 15% YoY. Going forward, while exports have bottomed out, domestic market is expected to continue to grow in high double digit with a double digit margins as well. Visaka continues to stand apart from its peers in Boards and Panels business and has highest varieties and designs in this segment than any other peers.

Capex of around Rs 106 crore was incurred in FY 18. Largely on Haryana plant for Boards and Panels and Atom Solar plant. The capacities will be operational from June 18 onwards, although lot of expenses have been incurred in shifting of capacities and creating markets in FY 18. Some volume was affected as a result of shifting of the capacities but overall if one adds volumes of all the plants, they make up.

At peak capacity the solar roof can generate revenue of Rs 25 crore. Its first of a kind of product in India.

Net debt was up by Rs 48 crore, but was largely due to capex. In FY 19, no major capex is planned and cash flows are expected to improve which will bring down net debt in FY 19.

The company has maintained its market share in asbestos segment in FY 18. Asbestos sheet business accounts for around 65% of total sales, which management aims to bring to around 50% by 2020. Contribution of boards and Panels should increase to 30% from around 18% of total sales as on FY 18.

Textile business was affected in FY 18 due to GST issues. However things have stabilized in Mar 18 quarter. Both volume and realisation are better. For FY 19, expects double digit sales growth in textile with margins of around 12-12.5%.

Overall, expects strong growth going forward with better margins going ahead. FY 18 to be a strong base year on which strong growth is expected in coming years.

Increase in Rural spending will also auger well for the industry and for the company.

No. of working capital days stood at around 103. Expects working capital days to improve further going forward.