SG Mart Ltd Q4 FY25 Earnings Analysis

- FY '25 revenue guidance is around Rs. 7,000 crores based on 1.2 to 1.5 million tonnes sales volume. - FY '26 revenue expected to jump 40% from FY '25, approximately Rs. 9,000 crores to Rs. 10,000 crores with 1.8 to 2 million tonnes volume. - By FY '27, revenues targeted at Rs. 18,000 crores (subject to steel price fluctuations) with 2.5 to 3 million tonnes volume. - The company plans to operationalize 15 to 20 service centers by FY '27, boosting margins and volumes significantly. - Q4 FY '25 expected revenue between Rs. 1,500 to Rs. 1,700 crores; full year FY '26 revenue around Rs. 6,000 crores if Q4 meets minimum Rs. 1,500 crores. - Incremental steel supply and growing steel demand are key drivers for volume growth. - New product lines like solar structures and white label products are expected to enhance revenue streams.

- SG Mart aims to achieve Rs. 18,000 crores revenue by FY ’27 with a sales volume of 2.5 to 3 million tonnes. - EBITDA margin guidance is to rise from around 2.1% currently to 2.5% by FY ’27, driven by ramping up service centers, solar structures, and white-label products. - Business EBITDA per tonne targeted to increase from Rs. 1,000 to Rs. 1,200 - Rs. 1,300 by improving product mix. - Operating EBITDA margin expected to improve gradually to 2.5%, supported by service center expansions and higher margin products. - Net working capital cycle to stabilize between 15-20 days, maintaining ROCE above 30%. - Revenue expected to grow about 40-50% year-on-year, with FY ’26 revenue anticipated around Rs. 9,000 to 10,000 crores. - Q4 FY ’25 revenue guidance is Rs. 1,500 - 1,700 crores, expecting further uptick with anticipated construction sector recovery.

- Spent around Rs. 142 crores in first nine months of the current fiscal year towards CAPEX. - Two service centers operational: Ghaziabad and Bangalore; three others (Dubai, Raipur, Pune) finishing construction, operational by February 2025. - Identified five new locations for service centers; CAPEX expected to start next month with land identification underway. - Ordered machinery for solar mounted ground structures; trials ongoing with first sales expected in February 2025. - Solar structure business seen as a major future revenue and profitability booster, tapping into the hyper-growth renewable sector in India.

- No immediate plans for new debt or equity fundraising. - Current cash and cash flow generation are sufficient to support business growth. - Total capital employed expected around Rs. 2,500 crores to generate Rs. 30,000–35,000 crores business. - Rs. 1,300–1,400 crores cash at start plus Rs. 700–800 crores cumulative cash generation covers capital needs. - Interest expense expected to remain stable; no significant increase anticipated with opening of new service centers. - Working capital managed efficiently to avoid excessive debt reliance. - New service centers (15 operational, 10 under construction in next 15-20 months) will increase working capital days modestly, but interest income and cost should offset each other.

- The transcript does not explicitly mention the current or expected order book or pending orders by SG Mart Limited. - However, business volumes and sales were discussed: the company is targeting to surpass 1.2 million tonnes for the full year FY ’25. - Q3 sales volume was around 290,000 tonnes, with expectations of a heavy jump in Q4 due to ramp-up in service centers. - They expect approximately a 40% jump in revenues for FY ’26 compared to current figures. - New service centers are being commissioned (e.g., Pune, Raipur, Dubai) with additional five sites identified for future expansion. - The company has also started forays into solar structure business with sales expected to begin in February, indicating potential new order inflow there. - Working capital days expected to reach 15-20 days as more service centers open, which may correlate with increased order fulfillment capacity.