DOLLAR IND Q2 CONCALL OUTLOOK
Aiming for Rs. 2000 crore revenue in the next fiscal year.
Targeting an operating EBITDA margin of 13-14% next year, with a long-term goal of 14-15%.
Goal to achieve a cash conversion cycle of approximately 135 days by FY26.
Plans to be debt-free by FY27-FY28
EARNINGS
STRONG-BSE, GSFC, KNR CONSTRUCTION, ASHOKA BUILDCON, KIRLOSKAR OIL, POLYPLEX, GIPL, GOKALDAS EXPORTS
INLINE-GIC, SUVEN PHARMA
MIXED-NYKAA, BOMBAY DYEING
WEAK-NMDC STEEL, GREAVES COTTON
Expanding industry towards aerospace robotics and setellite
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CAPACITY PROFILE
In Phase 2, the company has increased capacity to 15.0 Mn Mtrs in Aug-24, Balance 1.5 Mn Mtrs will be completed as per given timeline
Industry-wise Split
Steel - 24%
Oil and Gas - 16%
Fire Sprinklers - 30%
Metals & Mining - 6%
Chemicals & Petrochem - 16%
Refinery - 8%
Geographical Revenue Bifurcation FY24
Exports - 84%
Domestic - 16%
Manufacturing Facilities
Their manufacturing facility is located at Taloja, Navi Mumbai.
Capacities
1) SS Flexible Hoses with & without Braiding- 24.5 mn mtrs. as of FY24. Out of this 13.5 mn mtrs were added in FY24. Additional 16.5 mn mtrs will be added by Q3FY25.
2) Composite Hoses - As of FY24, 3 Operational lines for manufacturing product sizes of 14 inches. Plan to add 3 more lines for sizes up to 20 inches by Q2 FY25.
3) Assembly & Fittings - As of FY24, running 29 welding stations (8 added in FY24).
4) Metal Bellows - 3,00,000 pieces.
Product Portfolio
Braided hoses, unbraided hoses, solar hoses, gas hoses, vacuum hoses, braiding, interlock hoses, hose assemblies, lancing hose assemblies, jacketed hose assemblies, exhaust connectors, exhaust gas recirculation (EGR) tubes, expansion bellows, compensators, and related end fittings. The company has 2388+ SKUs
Incorporated in 1993, Aeroflex Industries Limited, manufactures and supplies environment-friendly metallic flexible flow solution products
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Today discuss one strong business
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PG electroplast:
1. Raises Revenue guidance at Rs 4250 cr from Rs 3650.
2. Raises Profit Guidance at Rs 250 cr from Rs 216
MAPMYINDIA says On Track for Revenue run-rate of 1000 Cr by FY28
Will see improvement in H2
Have made our first foray in international markets
GANESHA ECOSPHERE ; Board has decided to set up a Green field Project with a capacity of 45,000 tons per annum (TPA) to manufacture rPET Chips/Granules in the State of Odisha
Present Capacity; 42,000 TPA
Co. To invest Rs 450-500 Cr For This
Proposed capacity to be added within a period of2 years
Aeroflex Industries Ltd Concall Notes - Nov 2024
Q2 & H1 FY25 Financial Performance:
Total income for Q2 FY25 reached ₹95.8 crores, a 13.5% increase year-on-year.
Revenue growth primarily driven by a 38% increase in the assemblies and fittings business, rising from ₹27.46 crores in Q2 of last year to ₹37.89 crores.
For H1 FY25, total income was ₹186.58 crores, an 11% increase from ₹168.35 crores in H1 FY24.
Assemblies and fittings business grew by 52%, from ₹45.5 crores to almost ₹70 crores in H1 FY25.
Gross margins improved to approximately 40%, up from 36% in H1 FY24, reflecting a 400 basis point increase.
Year-on-year EBITDA growth of 29.5% in absolute terms; EBITDA margins at 22.10%.
Product Segmentation:
Flexible hose segment contributed about 52% to H1 revenue.
Assemblies and fittings business accounted for nearly 40% of revenue for H1 FY25.
Interlock and composite hoses contributed approximately 8% to overall revenue.
Capacity Expansion and Capex Plans:
Capacity expansion progressing as planned; added 1.5 million meters of capacity in August 2024, totaling 15 million meters per annum.
Remaining 1.5 million meters expected to be completed by December 2024.
Planned capex of ₹18 crores for Hyd-Air over the next six quarters for new machines and refurbishments.
Installation of new machines and setup of a quality lab at Hyd-Air is underway.
Acquisition and New Orders:
Completed acquisition of Hyd-Air in April 2024, enabling a shift from hose provision to complete assemblies.
Received the first trial order from the Railway Coach factory, marking a significant milestone for Hyd-Air.
Bellows project machinery installation underway; trial production expected to begin this quarter.
Strategic Focus and Market Outlook:
Aiming for 60% to 70% of revenue from the assembly business in the next 3-4 years.
Management confident in driving growth through innovation and expanding product portfolio.
Focus on diversifying offerings, growing global presence, and entering new sectors with value-added products.
Anticipating significant revenue contribution from the introduction of new robotic assembly.
Challenges and Operational Insights:
Current operational constraints in assembly line due to manual processes; automation expected with new welding machines arriving by December.
Facing increased working capital cycle due to delays in container shipments, impacting inventory levels.
Management is optimistic about overcoming these challenges through strategic customer collaborations and operational enhancements.
Export Contribution:
Exports now account for approximately 83% of overall revenue, showcasing strong international demand.
Management highlighted a shift in focus towards markets in the Americas, Middle East, and Africa, reducing reliance on the European market.
Future Guidance:
Management projects potential revenue from the 16.5 million meters capacity at approximately ₹500 crores, with expectations of at least 50% from the assembly business.
EBITDA margins expected to improve by 50 to 100 basis points upon reaching this revenue target.
Continued focus on R&D and operational efficiencies expected to yield cost savings impacting overall financial health positively.
leading manufacturer of metallic flexible flow solution
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Clientelle
The Company’s diversified customer base comprises distributors, fabricators, MROs i.e. Maintenance Repair and Operations Companies, Original Equipment Manufacturers (OEMs) and companies operating in a wide range of industries.
Country-wise split
Europe - 26%
USA - 61%
Asia - 10%
Africa - 2%
Others - 1%
International Presence
The Company exports its products to 88+ countries including Europe, the USA, etc.
Product Mix FY24
SS Flexible Hoses with & without Braiding - 60%
Assemblies & Fittings - 34%
Composite Hose & Others - 6%
Co. is one of the leading Indian manufacturers of metallic flexible flow solutions made with stainless steel used for controlled flow of all forms of substances including Solid, Liquid, and Gas. Incorporated in 1993, co. is part of Sat Industries Limited.
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AEROFLEX INDUSTRIES LTD
CMP: 188
PMS fund manager Saurabh Mukherjea led Marcellus picked up 7 new small and midcap stocks viz.
1. Grauer & Weil (India)
2. LT Foods
3. Ultramarine & Pigments
4. MAS Financial Services
5. Carysil
6. Narayana Hrudayalaya
7. Escorts Kubota
EXIDE Q2 CONCALL
Automotive replacement demand was strong, while demand from OEMs was modest in Q2
Share of higher auto contribution & cool-off in RM prices helped margins
Outlook for led acid battery biz remains positive in near to medium term
Epigral to Expand Production Capacity with ₹780 Cr Investment
Epigral announces capacity expansion for CPVC Resin and Epichlorohydrin at Dahej, Gujarat.
Capacity Increase:
👉🏻CPVC Resin: +75,000 TPA
👉🏻Epichlorohydrin: +50,000 TPA
Projected Completion: By H1FY27
Investment: ₹780 Cr, funded through internal accruals and debt
Goal: Enhance market penetration and growth potential.
