Tega Industries held a conference call on 09 November 2023 to discuss the results for the quarter ended September 2023 and way forward. Mr. Mehul Mohanka - MD & Group CEO, Mr. Syed Yaver Imam - Director – Global Product Group and Mr. Sharad Kumar Khaitan – CFO of the company addressed the call.

Highlights of the Concall

• Revenue increased 24% to Rs 646 crore in H1FY24 compared to H1FY23 led by 7% growth in consumable segment to Rs 555 crore and equipment revenue of Rs 91 crore. 7% growth in consumable includes volume growth of 3-4%, price impact in 1.5-2% and impact of exchange rate is 2%.

• The integration of McNally Sayaji with Tega Industries is progressing well. The company is working towards achieving full potential of the McNally Sayaji led by integration of two entiites and creating value from the synergies which will have positive impact in the future.

• The company has changed the name of McNally Sayaji Engineering to Tega McNally Minerals. The new brand name is more vibrant and shall lend more credibility, quality assurance and improved customer experience.

• The company had earlier announced that a wholly owned subsidiary has entered into an agreement with largest copper mines in Europe to completely manage products and assets of the mine covering its mill and non mill product lines. The duration of this engagement spans a total of 5 years, extendable by another year with effect from January 1st, 2024. 4. The agreement is linked to production and the minimum amount the customer is expected to spend during the 6 year term of the agreement is approximately Rs. 685 crore.

• The company has completed all ground work including finalization of the structural design and environment clearance for the Chile project and the company expect all regulatory to be completed in current quarter. As soon as approvals are ready the company will start construction of its new facility in Chile.

• The company expects Chile plant to start by March 2025

• The company do not see any significant impact on the in supply chain regarding logistics and operation front of the business due to the challenges emerged with respect to Russian-Ukraine war as Russia account for around 2-3% of business and the order flow remains good.

• With respect to Israel conflict despite the intensity major port are maintaining operational integrity and shipping companies have ensured that essential services continue unabated.

• The company has a strong order book of Rs 600 crore at group level at the end of September quarter compared to order book of Rs 480 crore as on 1st April 2023.

• Current average capacity utilization is around 60-65%

• The company mentioned that H2 of any financial year is better than its H1 which is mainly due to consumption pattern of mining companies.