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Antony Waste Handling hosted a
conference call on May 27, 2022. In the conference call the company was
represented by Jose Jacob Kallarakal, CMD and Subramanyam, CFO.
Key takeaways of the call
Tonnage handled by C&T
business (excluding those projects with fixed shifts/trips/household units) increased
by around 20% to 1.53 million tonnes in FY22. The C&T volume handled in
Q4FY22 was up by 7.4%yoy. The tonnage processed (or volume of MSW Processing
business) was up 11.9%YoY to 2.3 million tons. Similarly the total compost
sales for FY22 stood at 14,241 tons (up 27.5%YoY compared to 11,169 tons in
FY21).
Three projects added in C&T
business during 2021-22. The Jhansi project
is fully operational and the company has just started operations in one zone in
case of NDMC projects. Expect the client to complete procurement of
assets/equipments by June/July 2022. So the company expects the NDMC project
will become fully operational only by end of Q2FY23 or start of Q3FY23. Expect annualised
run rate of about Rs 95-110 crore from NDMC project once fully operational. NMDC contributed only 15 days to topline in
Q4FY22. Jhansi capex is completely borne
by the client. It is the same case with Varanasi. So traction will be there in both the cities.
About 45% of total tonnage in case of
C&T will happen in Q4&Q1 and balance 65% in Q3&Q4.
Nashik project: AG Enviro Infra
Projects, the subsidiary of the company has been awarded two contracts i.e.
Daily Municipal Solid Waste Collection from Panchvati & Satpur Divisions
and Transportation to compost plant at Pathardi for 5 years for Nashik City
Municipal Corporation. It is a five year contract. Normally it will take 3-4 month for assets to
get in place and manpower in place. So the company see revenue of about Rs 22-25
crore odd from Oct 2022.
PCMC (Pune Chinchwad Municipal
Corporation) W2E (waste to energy)
project will commence operation from March 2023. Capex cost
is fixed and capped at Rs 264 crore.
Focus on winning newer contracts
from municipalities and the company will continue to adopt cluster approach
while bidding. Open to bidding for more processing contracts
capital requirement depends on subsidy/grant given by the client and
technology.
Expects revenue growth in the range
of 30-35% for FY23 including all C&T, MSW processing and contract revenue.
Decline of labour cost in Q4FY22
from Q3FY22 is largely due to minimum wage revision. The impact of minimum wage
revision (cumulative impact to the tune of Rs 6.8 crore on account of minimum
wage revision) was accounted in Q3FY22. In
Q4FY22 this additional cost was absent leading to decline on QoQ basis. The normal rise in wage was passed on to
customers through pass through clause in the contract.
About 48% of the contract has
some form of price escalation clause.
About 62% operating cost labour and diesel is covered by escalation
costs.
Contract revenue relates to DBOOT
projects and arising from IND-AS treatment for capital expenditure incurred at
DBOOT projects along with mechanical etc. So this will vary with capex
recognised on DBOOT projects.
Greater Noida bio-mining revenue
booking started in Q4FY22. Bio-mining at
Kanjurmarg is going on in first cell and 2nd cell will start soon.
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