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

Ddev Plastiks plans to invest ₹300 crore over the next 3 years. For FY25, ₹125 crore is allocated toward this investment. Capex will focus on establishing new greenfield sites in both East and West India. Additional investment will go toward debottlenecking existing capacities. Work on acquiring land and other processes for new capacities is underway, expected to be operational next financial year. Greenfield sites will have capacity for an additional 60,000 tons. HFFR (Halogen-Free Flame Retardant) capacity will ramp up from 5,000 tons (currently operational) to 20,000 tons by FY26-end. These

Future growth expectations in sales/revenue/volumes?

Volume growth expected at around 15% CAGR driven primarily by the wires and cables segment. FY25 volume forecast is approximately 180,000 to 185,000 tons, up from 160,000 tons in FY24. New capacity expansion underway, expected operational in next financial year, increasing total capacity beyond current 230,000 tons. Addition of high-margin products like halogen-free flame-retardant (HFFR) compounds with capacity ramp-up to 20,000 tons by FY26 end. Growth in higher voltage cable compounds (72 kV, moving towards 132 kV and 220 kV) targeting a 10%-12% EBITDA margin, potentially increasing turnove

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

Ddev Plastiks expects volume growth at a CAGR of around 15% over the next 5 years, driven mainly by the wire and cable segment. Revenue growth is anticipated at a CAGR of 12% to 15% over the next 5 years, continuing the historical trend. EBITDA margins are expected to stabilize in the range of 10% to 12%, with some headwinds like elevated freight costs impacting near-term profitability. Introduction of high-margin products like Halogen-Free Flame Retardant (HFFR) compounds (capacity expanding to 20,000 tons by FY26) and high voltage cables (132 kV and 220 kV) are expected to slightly imp

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DDev Plastiks Industries LtdQ2 FY24Chemicals & Petrochemicals

DDev Plastiks Industries Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹272P/E: 12.6Market Cap: ₹2.5K CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 3

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 3

→Volume growth expected at around 15% CAGR driven primarily by the wires and cables segment.
→FY25 volume forecast is approximately 180,000 to 185,000 tons, up from 160,000 tons in FY24.
→New capacity expansion underway, expected operational in next financial year, increasing total capacity beyond current 230,000 tons.
→Addition of high-margin products like halogen-free flame-retardant (HFFR) compounds with capacity ramp-up to 20,000 tons by FY26 end.
→Growth in higher voltage cable compounds (72 kV, moving towards 132 kV and 220 kV) targeting a 10%-12% EBITDA margin, potentially increasing turnover contribution to 10%-15%.
→Export markets remain important with strategic focus on recovery of shipping cost increases and new approvals (e.g., Underwriters Laboratory).
→Overall revenue growth influenced by polymer price fluctuations but volume-driven growth remains strong.

Margin guidance

Category 3

→Ddev Plastiks expects volume growth at a CAGR of around 15% over the next 5 years, driven mainly by the wire and cable segment.
→Revenue growth is anticipated at a CAGR of 12% to 15% over the next 5 years, continuing the historical trend.
→EBITDA margins are expected to stabilize in the range of 10% to 12%, with some headwinds like elevated freight costs impacting near-term profitability.
→Introduction of high-margin products like Halogen-Free Flame Retardant (HFFR) compounds (capacity expanding to 20,000 tons by FY26) and high voltage cables (132 kV and 220 kV) are expected to slightly improve margins by 0.5% to 1%.
→Absolute EBITDA growth is expected despite margin pressure, aided by volume growth and product mix improvements.
→New capacities and debottlenecking planned in next financial years will support growth.
→Overall EPS and operating profits growth will be moderate, aligned with volume increases and pricing stability.

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Fundraise plans

- As of the latest call transcripts, Ddev Plastiks has become a net debt-free company in Q4 FY 2024. - The company plans to maintain a net debt-free status in FY 2025 and beyond. - There is no mention of any ongoing or planned new fundraising through debt or equity. - CAPEX plans include investing around ₹300 crores over the next three years, with ₹125 crores allocated for FY 2025. - These investments will be funded through operational cash flows, with no indication of raising external funds via debt or equity. - The company is currently focused on capacity expansion, debottlenecking, and greenfield site development, financed internally. Overall, no new fundraising through debt or equity is indicated in the provided discussions.

Order book

The transcript provided from pages 1 to 20 of the Ddev Plastiks Industries Limited document dated August 12, 2024, does not contain specific information regarding the current or expected order book or pending orders for the company. The Q&A and discussions primarily focus on export terms (FOB/CIF), volume and margin trends, raw material prices, capacity expansions, product segments, shipping cost impacts, and market outlooks. If you need detailed data on the order book or pending orders, that might be available in other sections of the full report or in their official disclosures not included here.

Capex plans

Yes

→Ddev Plastiks plans to invest ₹300 crore over the next 3 years.
→For FY25, ₹125 crore is allocated toward this investment.
→Capex will focus on establishing new greenfield sites in both East and West India.
→Additional investment will go toward debottlenecking existing capacities.
→Work on acquiring land and other processes for new capacities is underway, expected to be operational next financial year.
→Greenfield sites will have capacity for an additional 60,000 tons.
→HFFR (Halogen-Free Flame Retardant) capacity will ramp up from 5,000 tons (currently operational) to 20,000 tons by FY26-end.
→These investments aim to support volume growth (targeting ~15% CAGR) and move into higher-margin, high-voltage cable segments.

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