BIGBLOC Construction LtdQ1 FY23Cement & Cement Products

BIGBLOC Construction Ltd

Q1 FY23 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→FY24 revenue growth targeted at 15-30% with quarterly incremental growth of Rs. 20-25 crores starting next quarter.
→Capacity utilization at new Wada plant expected to ramp up to 75-80% within 4-5 months, driving volume growth.
→Volume target for FY24 around 6,00,000 to 6,50,000 cubic meters; increasing from approximately 4,60,000 cubic meters in FY23.
→New JV plant near Ahmedabad to start commercial production in Q4 FY24, contributing to growth.
→Additional capacity expansions planned (Wada from 2.5 lakh to 5 lakh CBM) and new plants in Delhi and Bangalore within 2-3 years aiming for Pan India presence.
→Total capacity expected to reach about 13.5-13.75 lakh CBM by end of FY25, making the company the largest AAC block manufacturer in India.
→Expect steady top-line growth each quarter as expansions scale up and capacity utilization improves.

Margin guidance

Category 3

→Revenue Growth: Expecting steady revenue growth with capacity expansions at Wada and new JV plant at Ahmedabad to drive quarterly revenue increases of ₹25-30 crores starting from next quarter (Q1 FY24).
→Volume Growth: Targeting volume growth with capacity utilization improving to 75-80% within 4-6 months at Wada and Ahmedabad plants, leading to total capacity of 1.35 million CBM by end FY25.
→EBITDA and PAT Margins: EBITDA margins expected to sustain around 25%, and PAT margins to remain stable near 15% going forward.
→EPS/Profits: Net profit expected to continue growing with improved volumes and operational efficiencies, supported by steady pricing and controlled costs despite depreciation from new plants starting Q4 FY24.
→Long-Term View: Company aims for Pan India presence, becoming the largest AAC block manufacturer in India with positive outlook for 10-15 years.

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Fundraise plans

→The company is planning CAPEX of approximately Rs 18 to 20 crores for capacity expansion at Wada (from 2.5 lakh to 5 lakh cubic meters).
→They have completed banking tie-ups for financing the upcoming expansion in their joint venture.
→No explicit mention of fresh equity fundraising; focus appears on debt financing for expansions.
→The company is negotiating trade credit insurance for receivables, indicating a conservative approach to managing financial risk.
→Exploring geographic expansion and capacity additions suggest possible future fundraising, but no definitive plans shared yet.

Order book

The transcript provided does not explicitly mention the current or expected order book or pending orders in specific numbers. However, from the relevant excerpts: - Builders and corporates have generally good order books as mentioned by Manish Saboo, indicating healthy demand in the real estate sector. - Growth in real estate markets like Ahmedabad, Gandhinagar, Mumbai, and Pune is strong, supporting ongoing and future demand. - Payment terms with builders and corporates average 60 days but can stretch to 75-90 days, indicating ongoing projects and pending payments. - Capacity expansions at Wada and a new JV plant to start in Q4 FY24 suggest expectations of increasing orders and volume growth. - A revenue growth of around ₹25-30 crore every three to six months is expected, reflecting steady order inflow. No precise order book numbers or pending orders details are disclosed in the transcript.

Capex plans

Yes

→Expansion at Wada plant, Maharashtra: Capacity to increase from 2,50,000 to 5,00,000 cubic meters with CAPEX of around Rs. 18-20 crores.
→New facility near Ahmedabad in joint venture with SIAM Cement Bigbloc Construction Technologies Private Limited; commercial production expected from Q4 FY24.
→Plans to become the largest AAC block manufacturer in India with total capacity reaching approximately 13.5 to 13.75 lakh cubic meters by end of FY25.
→Proposed future plants near Delhi and Bangalore targeted within the next 2-3 years to establish pan-India presence.
→Investment in rooftop solar plants for sustainable practices; 450 kW plant commissioned at Umargaon, another planned at Kapadvanj.
→Banking tie-ups finalized to finance upcoming expansions.
→Company exploring acquisitions/feeder plants in South and North India as part of geographic expansion strategy.

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