Any current/future new fundraising through debt or equity?

The company is planning to raise funds for upcoming expansions. Fundraising will be through both equity and debt. Currently, for the joint venture, no debt has been availed yet; CAPEX of around Rs. 11-12 crores has been incurred. For the Wada plant CAPEX, some has been done from the company's end, with bank finance proposals submitted and expected sanction within a month. The company is comfortable with a debt-equity ratio of up to 1.3 to 1.5 to fund upcoming CAPEX. Promoters have chosen to forgo dividend rights to support growth and expansion plans, indicating commitment toward funding requir

Any current/future capex/capital investment/strategic investment?

The company is undertaking a replacement of 5 out of 6 autoclaves at the Umargaon plant with an estimated cost of Rs. 4-5 crores planned for the ongoing quarter. Construction activities for Phase 2 at the Wada plant are set to commence shortly, with the plant expected to ramp up capacities. A joint venture facility, SIAM Cement-BigBloc Construction Technologies Pvt. Ltd., is under construction, targeting commercial production within 6-8 months. Planned capacity expansions include increasing installed capacity from 8 lakh cubic meters to around 13 lakh cubic meters in 6-8 months, followed by an

Future growth expectations in sales/revenue/volumes?

BigBloc expects robust demand for AAC blocks over the next 3-5 years, with AAC currently constituting about 10% of the overall volume market and growing. The company aims to expand capacities from 800,000 cubic meters to about 1.3 million cubic meters in the next 6-8 months. Further capacity addition of around 1 million cubic meters is planned in North and South India within 2-3 years, aiming for over 2 million cubic meters total capacity. Topline revenue target is set between Rs. 400 crores to Rs. 500 crores by the end of FY25 or FY26. Volume growth for FY24 is expected at 20%-25% with revenu

Future growth expectations in earnings/operating earnings/profits/EPS?

BigBloc aims for significant capacity expansion, targeting around 2 million+ cubic meters in 2-3 years (Page 8). Revenue target is Rs. 400-500 crores by FY25/FY26 (Page 8). The AAC blocks market is growing at a 20%+ CAGR, with company projections to reach Rs. 500-600 crores in turnover in 5 years (Page 12). Expected volume and revenue growth for FY24 is approximately 20-25% (Page 5). EBITDA margins are stable around 24-25%, considered healthy by management (Page 11). Management is focusing on EBITDA over net profit margin due to CAPEX and other financial factors (Page 11). Debt-equity ratio ca

Current/ Expected Orderbook/ Pending Orders?

The current order book size is approximately 8 to 10 days of orders. The order book value is estimated around Rs. 7 crores to Rs. 8 crores. The industry typically maintains a short order book due to the bulky nature of the product. Small and unorganized builders place orders as per immediate material requirements. Customers usually order to receive deliveries within 3 to 5 days. The company does not expect a long order book given the industry's working model.

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BIGBLOC Construction LtdQ3 FY23Cement & Cement Products

BIGBLOC Construction Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹49.7Market Cap: ₹811 CrSector: Cement & Cement Products

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→BigBloc expects robust demand for AAC blocks over the next 3-5 years, with AAC currently constituting about 10% of the overall volume market and growing.
→The company aims to expand capacities from 800,000 cubic meters to about 1.3 million cubic meters in the next 6-8 months.
→Further capacity addition of around 1 million cubic meters is planned in North and South India within 2-3 years, aiming for over 2 million cubic meters total capacity.
→Topline revenue target is set between Rs. 400 crores to Rs. 500 crores by the end of FY25 or FY26.
→Volume growth for FY24 is expected at 20%-25% with revenue growth around 25%.
→Wada plant capacity utilization is projected to reach ~80% by Q3 and Q4 FY24.
→The company is scaling up to become the largest AAC manufacturer in India by FY24, with plans for a Pan-India brand presence.

Margin guidance

Category 3

→BigBloc aims for significant capacity expansion, targeting around 2 million+ cubic meters in 2-3 years (Page 8).
→Revenue target is Rs. 400-500 crores by FY25/FY26 (Page 8).
→The AAC blocks market is growing at a 20%+ CAGR, with company projections to reach Rs. 500-600 crores in turnover in 5 years (Page 12).
→Expected volume and revenue growth for FY24 is approximately 20-25% (Page 5).
→EBITDA margins are stable around 24-25%, considered healthy by management (Page 11).
→Management is focusing on EBITDA over net profit margin due to CAPEX and other financial factors (Page 11).
→Debt-equity ratio can comfortably rise to 1.3-1.5 to fund expansions (Page 11).
→Carbon credits are expected to generate revenue of roughly $800,000 annually, incorporated within regular revenue streams (Page 17).
→Utilization rates of new plants expected to ramp up to 80-90% within 6 months, supporting operating leverage (Page 14).

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Fundraise plans

Yes

→The company is planning to raise funds for upcoming expansions.
→Fundraising will be through both equity and debt.
→Currently, for the joint venture, no debt has been availed yet; CAPEX of around Rs. 11-12 crores has been incurred.
→For the Wada plant CAPEX, some has been done from the company's end, with bank finance proposals submitted and expected sanction within a month.
→The company is comfortable with a debt-equity ratio of up to 1.3 to 1.5 to fund upcoming CAPEX.
→Promoters have chosen to forgo dividend rights to support growth and expansion plans, indicating commitment toward funding requirements.

Order book

→The current order book size is approximately 8 to 10 days of orders.
→The order book value is estimated around Rs. 7 crores to Rs. 8 crores.
→The industry typically maintains a short order book due to the bulky nature of the product.
→Small and unorganized builders place orders as per immediate material requirements.
→Customers usually order to receive deliveries within 3 to 5 days.
→The company does not expect a long order book given the industry's working model.

Capex plans

Yes

→The company is undertaking a replacement of 5 out of 6 autoclaves at the Umargaon plant with an estimated cost of Rs. 4-5 crores planned for the ongoing quarter.
→Construction activities for Phase 2 at the Wada plant are set to commence shortly, with the plant expected to ramp up capacities.
→A joint venture facility, SIAM Cement-BigBloc Construction Technologies Pvt. Ltd., is under construction, targeting commercial production within 6-8 months.
→Planned capacity expansions include increasing installed capacity from 8 lakh cubic meters to around 13 lakh cubic meters in 6-8 months, followed by an additional 10 lakh cubic meters in North and South India, aiming for over 2 million cubic meters in 2-3 years.
→Total capital expenditure for the JV so far is around Rs. 11-12 crores without availed debt yet.
→Fundraising for upcoming expansions will be through a mix of equity and debt, with debt-equity ratio planned up to 1.3-1.5 for CAPEX funding.

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