AIA Engineering hosted a conference call on May 25, 2022. In the conference call the company was represented by Sanjay S. Majmudar, Director and Kunal Shah, Executive Director (Corporate Affairs).

Key takeaways of call

Production and sales volume for Q4FY22 was 70391 MT and 72976 MT respectively. For FY22 the production and sales volume was 278590 MT and 260469 MT.

Realisation in FY22 was about Rs 134/kg up from Rs 105/kg in FY21. Realisation in Q4FY22 was Rs 148/kg. 

Order book as at 1st April 2022: Rs. 502 Crores.

Has lost about 35000-40000 tonnes in Canada and South Africa. The sales volume in South Africa in FY22 is about 6000-7000 tonnes and it was very small (from cement sector) in Canada. The company has did a sales volume of about 10000 tonnes in Brazil against about 6000 tonnes in FY21. The loss of sales volume is compensated to the tune of 30000 tonnes from addition of new clients.

New customer addition and increase in wallet share.

Total capex spent during FY22 was Rs 131 crore.  Capex planned for FY2022-2023 is Rs 300 crore and that was to be spent across Mill Lining Project, Grinding Media Expansion Project and Hybrid Power Project (of 6.30 MW wind power and 5.67 MW of solar power) in addition to general capex.  Capex on balance work on mill liners is about Rs 130 crore. The capex on hybrid power project is about Rs 90 crore and Rs 60 crore is for others. 

By end of FY24, the company expect to commission the 80000 MT capacity brownfield capacity expansion of grinding media at Kerala GIDC set up at a capital outlay of Rs 200 crore. 

Manufacturing plant of Mill Liners with a capacity of 50,000 Mt is nearly completed. It is currently in trial phase and the commercial operation of it will happen in June 2022.   Post this expansion the total installed capacity of the company will be 4,40,000 TPA.

Expect additional sales volume of 30000-40000 MT for current fiscal at both lining and grinding media together.

Mining sector - Every body is operating at higher operating levels and don't want to have down time to cash on the higher realisation in the market.

Cash as end of Mar 2022 was about Rs 1850 crore

Significant improvement in realisation as the company continue to pass on higher input cost at 100%.

Lot of uncertainty in demand environment with the impact of covid in some countries of world like China as well as Ukrain war. The marketing efforts of the company is also hampered by travel restrictions.

Expect mining and cement industries to see activity pick-up as the economy settles and adjusts to the new normal. And this inturn to drive the demand for the products of the company.