Bansal Roofing Products LtdQ1 FY24
Bansal Roofing Products Ltd
Q1 FY24 Earnings Call Analysis
Management growth scorecard
Revenue
Category 3
Margin
Category 2
Fundraise
No
Order
N/A
Capex
Yes
1 of 4 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 3- →The company expects an increase in profits starting from the current fiscal year as no major expenses are anticipated going forward.
- →After expanding from a 36,000 sq.ft. factory (Unit I) to a 300,000 sq.ft. factory (Unit II), the turnover can potentially grow from the previous Rs. 105 Crores to Rs. 200-250 Crores in the future.
- →Production capacity increased from 300 tonnes/month in Unit I to 800 tonnes/month in Unit II, with plans to reach 2000 tonnes/month within 3-4 years by installing more machinery and hiring staff.
- →Operating profit margins are targeted to rise from 1% this year, improving overall profitability.
- →Sales have grown YoY, though PAT faced decline due to raw material price volatility and labor issues.
- →The company plans to expand orders across multiple states, including supply agreements with large clients like L&T.
- →Steel prices directly impact revenue and volumes due to their direct proportionality.
Margin guidance
Category 2- →The management expects no major expenses going forward, anticipating higher profits starting this year.
- →Operating Profit Margin is targeted to increase by 1% in the current fiscal year.
- →Expansion from Unit I to larger Unit II is expected to boost capacity and turnover, potentially reaching Rs. 200-250 Crs. in future years.
- →Production capacity currently at 800 tonnes/month in Unit II, with a goal to increase to 2000 tonnes within 3-4 years through machine installation and staffing.
- →Despite volatility in steel prices affecting PAT, the company aims to leverage increased capacity for growth.
- →Earnings per share and PAT declined recently due to steel price volatility; future stability and growth are expected as operating leverage improves.
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Fundraise plans
No- No major expenses are expected currently, indicating no immediate need for new fundraising.
- Potential future capital expenditure may occur but will be funded from the company’s own accruals, not through shareholders.
- There is no mention of planned fundraising through debt or equity in the near future.
- The company has repaid total debt of around Rs. 2.12 crore in FY 23-24, reflecting focus on deleveraging.
In summary, Bansal Roofing Products Ltd. does not plan to raise new funds through debt or equity soon; future capital needs will be met from internal resources.
Order book
- →For Pre-Engineering Buildings (PEB), the company currently has an order book covering the next 2.5 to 3 months.
- →The plant is booked for execution of these orders until October 2024.
- →The company has completed around 250+ PEB projects across India and abroad.
- →The company continues to receive orders from various states and clients including L&T, with sales majorly in Gujarat (90%) and expanding to other states such as Uttar Pradesh, Bihar, and some parts of South India.
Capex plans
Yes- →There may be capital expenditure (capex) in the coming future.
- →Any future capex will be funded from the company's own accruals, not from shareholders.
- →No major expenses are expected currently.
- →The company aims to generate more profits starting this year due to expansion completion.
- →Expansion plans focus on increasing production capacity from current 800 tonnes to a future target of 2000 tonnes per month, which involves installing more machines and hiring additional staff over 3-4 years.
- →Construction of factory phases alone will not achieve capacity growth; machinery installation and staffing are crucial.
- →The plant is booked for execution until October 2024, indicating ongoing operational activity.
How does Bansal Roofing Products Ltd rank vs peers in Industrial Products?
Pro feature1Bansal Roofing Products Ltd
Rev 3Mar 2
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