Earnings Call Transcript Analysis Report #
Financial Performance #
Key Metrics #
- Revenue: Q4 CY24 at INR 6bn (up 2.7% YoY, down 5.3% QoQ); FY24 at INR 24.5bn (down 1.2% YoY).
- Volume: Q4 CY24 slightly improved YoY, lower QoQ; FY24 flat YoY.
- EBITDA: Q4 CY24 at INR 320mn (down significantly from INR 618mn YoY, flat QoQ from INR 313mn); FY24 at INR 1.5bn (down 28% YoY).
- EBIT: Q4 CY24 at INR 182mn (down significantly from INR 506mn YoY, flat QoQ from INR 191mn); FY24 at INR 1.04bn (down 36% YoY).
- PBT (pre-exceptional): Q4 CY24 at INR 152mn (down from INR 444mn YoY, up slightly from INR 143mn QoQ); FY24 at INR 860mn (down from INR 1.3bn YoY).
- EPS (post-exceptional): Q4 CY24 at INR 1.55; FY24 at INR 11.65.
- Dividend: Recommended INR 2 per share for FY24.
- Debt: Debt-equity ratio at 0.1. Only ECB debt of approx. INR 1bn remains after retiring other debt and repaying half the ECB in Q3 2024. Next ECB repayment scheduled for 2027.
- Cash: Surplus cash invested in bank deposits and mutual funds. Balance sheet shows approx. INR 300 crores cash.
- Working Capital: Improved YoY and QoQ.
Comparisons #
Significant deterioration in profitability (EBITDA, EBIT, PBT) YoY for both Q4 and the full year, despite relatively stable volumes and top-line. QoQ profitability remained largely flat.
Areas of Growth/Decline #
Top-line remained relatively flat for the year but showed slight YoY growth in Q4. The primary area of decline is profitability/margins, impacted severely throughout FY24. Finance costs decreased due to debt repayment.
Strategic Initiatives & Business Updates #
Major Strategic Announcements #
Continued focus on safety, sustainability (via blueloop), customer-centricity, and project execution efficiency. Mentioned a restructuring in CY23 to become “future ready”.
New Products/Services/Markets #
- Blueloop (Sustainable Packaging): Contribution increased from ~25% in CY23 to 27.5% in CY24. However, adoption, particularly of high-margin, complex structures, is slower than anticipated in India. Quote: “…blueloop contribution from – sales contribution from 25% to 27% to 27.5% in last year. However, if you see still the traction of adaptability of sustainable structures in the industry is still at the nascent stage.”
- Tube Laminates: Identified as a key focus area for growth, primarily domestic currently, with plans for export expansion. Quote: “…tube laminate is also one of the critical product portfolio we have… key focus area for us to also grow in market.”
Operational Changes #
Mentioned reviewing low-profitability products in CY23, but market shifts (demand moving to lower-tier products) forced servicing this segment in CY24, impacting mix. Working capital management improved.