|
Nelcast hosted a
conference call on Aug 3, 2023. In the conference call, company was represented
by, Mr. P. Deepak -Chief Executive Officer & Managing Director and Mr. S.K.
Sivakumar- Chief Financial Officer.
Key
takeaways of the call
In
Q1 FY24, sales volume was 19,145 Tonnes compared to 20,158 Tonnes in Q1FY23.
Going
forward, management expects Sales volumes expected to grow in line with the
sales revenue.
In
Q1FY24, the largest share was contributed by M&HCV making up 38.9% of the
total revenues, followed by Tractors 24.6%, Exports 30.6%, Railways 3.0%,
Off-highway equipment 2.5%, and Others 0.4%.
In
FY24, company expect double-digit top line growth driven by strong demand in
M&HCV and exports.
Management
indicated that Exports sales would likely record reasonable level of growth due
to good order book position and new product launches.
In
Q1 FY24, EBITDA/Kg was Rs 11.7, representing Material improvement as compared
to Q4FY23, due to increased exports and better realisation.
Company
foresee better performance in H2 FY24 compared to H1, driven by strong demand
in commercial vehicle and exports.
In
Q1 FY24, revenue from tractors decreased by 25% due to subdued demand.
Management Expect the industry to remain largely flat due to slow growth in the
rural economy.
In
Q1 FY24, M&HCV segment's performance was slower than expectations.
M&HCV industry is expected to grow strongly in H2 FY24 driven by increased
infrastructure spends by the government and based on the demand forecasts of
its clients.
Exports
Reported strong growth of 23% YoY in Q1 FY24, contribution to revenue increased
from 26% to 30% on the back of strong demand. Company continue to see healthy
order backlog, especially in the truck segment and is working towards increasing
its shipments to take advantage of this strong demand.
Margins
have been improving due to increase in exports and better realization.
Going
forward, management expects margins to improve supported by stable domestic raw
material prices, better utilization and increase in exports revenue.
Capacity
utilization was around 50% in Q1 FY24.
Current
net debt stands at Rs 195 crore.
|