Hi-Green Carbon LtdQ1 FY25Other Utilities

Hi-Green Carbon Ltd

Q1 FY25 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

→Hi-Green Carbon Limited expects to expand capacity by adding new 100 TPD (tons per day) plants approximately at a rate of one plant per year.
→Current focus includes ramping up production and revenue from the new Dhule plant and upcoming third plant expected operational by Nov-Dec 2025.
→New plant revenues are approximately ₹70 crore annually per 100 TPD, with a revenue mix of ~40% from pyrolysis, 30% from Recovered Carbon Black (rCB), and 30% from sodium silicate.
→Ramping up rCB sales is expected to take 9-12 months due to customer approval processes.
→The company plans to expand in multiple states to diversify customer base and raw material supply.
→Future growth also includes exploring syngas utilization avenues such as bottling for sale to industries.
→Over 50 customers for rCB are currently served, with ongoing efforts to develop new customers and product applications for enhanced utilization and sales growth.

Margin guidance

Category 3

→Hi-Green Carbon plans to expand capacity steadily, with an expected addition of about one new 100 TPD (tons per day) plant per year.
→The ramp-up to full revenue utilization per plant typically takes 9-12 months, especially for Recovered Carbon Black (rCB) segment.
→New plants are expected to generate around ₹70 crore in annual revenue each.
→Growth in operating margins may improve with better utilization of syngas and exploration of new revenue streams like bottling and selling syngas to industries.
→Margins were diluted recently due to capacity expansion and mix changes but are expected to sustain or improve over the next 4-5 years.
→Government incentives (subsidies and interest subsidies) across states are expected to support margin expansion and reduce capital costs.
→The company emphasizes maintaining technology secrecy and operational efficiency to sustain competitive edge and profitability.

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Fundraise plans

→No explicit mention of current or immediate new fundraising through debt or equity in the transcript.
→Amitkumar Bhalodi discussed loan interest rates (~9%) on existing borrowings from banks like Central Bank and PNB.
→He mentioned exploring policy, incentives, and new location options for expansions but no confirmed fundraising.
→Future growth plans indicate setting up new plants at a pace of about one per year and possible second plants at existing sites.
→Discussion on government subsidies (up to 80% in Maharashtra, 40% in MP) suggests leveraging incentives to reduce capital intensity.
→Emphasis on internal funding and expansions rather than new capital raises were conveyed.
→No direct reference to issuing new equity or raising additional debt was specified on Page 27 or surrounding pages provided.

Order book

The document does not explicitly mention current or expected orderbook or pending orders for Hi-Green Carbon Limited. However, relevant insights include: - The company has customers who can absorb twice their current production capacity, indicating demand visibility. - They currently supply rCB to over 50 customers in India and abroad and are exploring new customer segments. - The ramp-up of rCB sales is a lengthier process due to approvals and customer trials. - The third plant is expected to be operational around November-December 2025, with full capacity utilization anticipated within 6 months for pyrolysis and around a year for rCB. - The company is expanding capacity roughly by one plant per year, with multiple locations under consideration. - No specific numeric orderbook or pending orders are disclosed.

Capex plans

Yes

→Current 100 TPD pyrolysis plant investment is approx. ₹45-50 crore, with ramp-up to full capacity taking 3-4 months for pyrolysis and 9-12 months for RCB sales.
→New 3rd plant expected to be operational around Nov-Dec 2025.
→Expansion strategy: typically adding one plant per year, considering multiple locations in India and abroad; potential for multiple plants at a single location.
→Land parcels at existing sites can accommodate bigger factories but diversification into new states like MP, Maharashtra, Gujarat for market and supply chain benefits.
→Investments include backward integration, e.g., Samsara Crumb Rubber plant in Gujarat.
→Incentives: Up to 80% subsidy over 7-10 years from state governments (Maharashtra, MP, Gujarat) with interest and electricity duty exemptions to reduce effective investment cost.
→J&K plant delayed due to geopolitical and policy uncertainties; no major investment made yet.
→Strategic focus on technology secrecy and avoiding licensing to third parties to protect competitive edge.

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