Key Highlights

Net sales for the quarter ended Dec 17 of the company stood at Rs 241.84 crore up by 21% on YoY basis. OPM stood at 14.2%, up by 310 bps thus overall growth in OP stood at Rs 34.41 crore, up by 55% YoY. PAT for the quarter ended Dec 17 stood at Rs 14.26 crore, up by 142% YoY.

Continues to be optimistic for Mar 18 quarter

A third plant of 50,000 TPA in Haryana operations to commence from April 18. Plant in Telangana for Solar Boards and Panels will also commercialize fully from April 18 onwards.

Solar roofing business is progressing well and initial response is satisfactory.

Cement asbestos grew in double digits in volume terms in Dec 17 quarter for the company as compared to around 6% for the industry growth. For 9 months ended Dec 17, the cement asbestos sales stood at 6 lakh tons as compared to 5.68 lakh tons.

Most market share gain from South and Eastern geography. Expects double digit volume growth to continue in cement asbestos sheet market.

Fall in exports of Boards has bottomed out and grew by around 11% in Dec 17 quarter on YoY basis. Overall, boards and Panels grew by 36% in Dec 17 quarter on YoY basis and grew by 12% for 9 months ended Dec 17 on YoY basis.

Margins in boards and panels are is early double digits. Expects margins to reach to around 16% levels in next 2 years.

4.5% volume growth for yarn segment. Margins are back. There was a one off of around Rs 1.7 crore due to some power issues, otherwise margins are in around 12-13% at Ebidta levels.

Textile sector which suffered the most due to the confusion of GST, is now back to normalcy.

24 days reduction in working capital cycle. Interest costs to go down further

Despite Rs 100 crore capex debt as of Mar 18 to be same as that of last year. FY 19, will see mostly maintenance capex and no major capex other than some spill over of FY 18 capex.

Growth in boards will improve further. Both volumes and margins to pick up.

Overall margins will further improve going forward.

The company is on track for its target of 50% of sales coming from V Board by 2020 as compared to currently around 32%.