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

Revised LPG project capex increased from INR700-750 crores to about INR850-900 crores due to design change to concrete steel tanks for safety and better operational efficiency. Construction of LPG tanks has started; fire tanks, pump house completed, piling test starting soon; expected 2-year timeline for completion. Additional tank approvals at JNPT secured; expansion on existing land parcel in progress. Exploring new terminal locations within India, details to be disclosed upon final agreements. No current plans for increasing chemical division capacity; focus on boosting capacity utilization

Future growth expectations in sales/revenue/volumes?

The company expects steady growth of around 5% to 7% in rental business revenue over the next couple of quarters. Major growth drivers will be the LPG segment expansion and increased chemical plant capacity utilization rather than rental business alone. Chemical division aims to increase capacity utilization from current 70-75% to 85-90% within 6 to 8 months; no immediate capex expansion planned there. New tanks are being added at JNPT and approvals for expansion are in process; further geographical expansion within India is being explored but no definitive agreements yet. LPG project

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

Ganesh Benzoplast expects steady growth in earnings and EBITDA with a target EBITDA of around INR110-105 crores for the current year, slightly lower than previously anticipated INR120 crores (Page 4). Growth rate is projected at 5-7% annually for the rental business, with major earnings jump expected from new LPG capacity additions and increased chemical plant utilization (Page 4). The chemical division aims to improve margins by increasing capacity utilization from current 70-75% to 85-90% without immediate capex (Page 4). LPG project capex revised higher (~INR850-900 crores) with completion

Current/ Expected Orderbook/ Pending Orders?

The revised LPG project approvals are mostly in place, with the main Peso approval obtained, allowing construction to start. Other approvals are still in process and expected shortly. Construction for the LPG tanks is planned to start soon, with test piling expected to begin within 7 to 10 days from early November 2024. The project timeline for completion is approximately 2 years from the start of construction, targeting October-November 2026. Additionally, Ganesh Benzoplast has received approval to add a few more tanks at JNPT on existing land, with details to be shared later. The company is

Ganesh Benzoplast LtdQ2 FY25

Ganesh Benzoplast Ltd Q2 FY25 Earnings Call Analysis

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

Price: ₹99.1P/E: 13.7Market Cap: ₹896 Cr

Management growth scorecard

Revenue

Category 4

Margin

Category 2

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 4

The company expects steady growth of around 5% to 7% in rental business revenue over the next couple of quarters.
Major growth drivers will be the LPG segment expansion and increased chemical plant capacity utilization rather than rental business alone.
Chemical division aims to increase capacity utilization from current 70-75% to 85-90% within 6 to 8 months; no immediate capex expansion planned there.
New tanks are being added at JNPT and approvals for expansion are in process; further geographical expansion within India is being explored but no definitive agreements yet.
LPG project capex has increased, but timelines remain unchanged with full operationalization expected around October 2026.
Rail logistics segment growth is currently limited, with plans mainly focused on optimizing existing assets and adding customers gradually.

Margin guidance

Category 2

Ganesh Benzoplast expects steady growth in earnings and EBITDA with a target EBITDA of around INR110-105 crores for the current year, slightly lower than previously anticipated INR120 crores (Page 4).
Growth rate is projected at 5-7% annually for the rental business, with major earnings jump expected from new LPG capacity additions and increased chemical plant utilization (Page 4).
The chemical division aims to improve margins by increasing capacity utilization from current 70-75% to 85-90% without immediate capex (Page 4).
LPG project capex revised higher (~INR850-900 crores) with completion expected in about 2 years; no debt assumed on parent books, JV will hold it (Page 6).
Rail logistics business currently stable with EBITDA of INR8-9 crores; growth expected with additional customers but currently limited (Page 5).
Overall, sustained EBITDA margins are expected in rental segment (~48-50%), with chemical margins improving based on operational efficiency and raw material costs (Pages 12-13, 7).

See what Ganesh Benzoplast Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

- The LPG segment capex has increased to INR 850-900 crores from the initial INR 700-750 crores range. - The project funding is secured through a mix of equity and debt; exact debt-equity breakup will be finalized within a month. - No debt will be assumed on Ganesh Benzoplast Limited's (GBL) books; debt will be raised by the JV company involving GBL's subsidiary, BW, and CPIL. - The management is currently finalizing term sheets from several banks for the debt portion. - No specific internal limit on external debt has been disclosed yet. Overall, the company is raising external debt through the JV for the LPG project while ensuring GBL itself remains debt-free. Equity funding is ongoing and mostly infused already for the project.

Order book

The revised LPG project approvals are mostly in place, with the main Peso approval obtained, allowing construction to start.
Other approvals are still in process and expected shortly.
Construction for the LPG tanks is planned to start soon, with test piling expected to begin within 7 to 10 days from early November 2024.
The project timeline for completion is approximately 2 years from the start of construction, targeting October-November 2026.
Additionally, Ganesh Benzoplast has received approval to add a few more tanks at JNPT on existing land, with details to be shared later.
The company is also exploring growth opportunities in other geographies within India but will disclose only after signing definitive agreements.
Capacity enhancement via increasing tank heights is considered but limited due to operational challenges like tank downtime during modification.

See what Ganesh Benzoplast Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

Revised LPG project capex increased from INR700-750 crores to about INR850-900 crores due to design change to concrete steel tanks for safety and better operational efficiency.
Construction of LPG tanks has started; fire tanks, pump house completed, piling test starting soon; expected 2-year timeline for completion.
Additional tank approvals at JNPT secured; expansion on existing land parcel in progress.
Exploring new terminal locations within India, details to be disclosed upon final agreements.
No current plans for increasing chemical division capacity; focus on boosting capacity utilization from 70-75% to 85-90%.
No company-level debt for LPG project; debt to be taken on JV books involving GBL subsidiaries.
EPC capabilities are primarily used internally; no broad external EPC business expansion planned.
Tank height increases for capacity expansion considered but limited due to operational constraints (4-5 months downtime).

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