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

Tega Industries has initiated a capex plan of about $30 million for the consumable business segment, primarily focused on the Chile project with construction already started. Commercial production from this new facility is expected by June 2025. Additional land of 51,000 square meters was procured adjacent to the Chile project site for INR 21 crores, intended for future expansion. In the equipment business, a capex of INR 15-20 crores is earmarked for reviving and expanding operations post the McNally acquisition. The company is open to acquisitions if they are strategically and financia

Future growth expectations in sales/revenue/volumes?

The company targets an average revenue growth of around 15% annually over the medium term. Consumable business expects about 15% revenue growth driven by high-quality solutions, product and service value additions, and continuous product upgrades. Equipment business aims for 15% revenue growth, with focus on integration and product upgrades post-acquisition of McNally. Market growth for mill liners is around 5%, but Tega is outperforming with over 15% growth, gaining market share. The overall mineral processing equipment market is bullish, with growth potential in domestic sectors like coal an

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

The company projects a conservative average revenue growth of about 15% over the coming years, driven by high-quality solutions and product value addition. EBITDA margins are expected to be around 20-21% on a blended basis. Consumable business segment EBITDA margin improved to 21% in Q1 FY 2025 from 16% in the same period last year, indicating margin expansion. Equipment business is expected to recover revenue and EBITDA margins post delays in payment and dispatch clearances. Integration of Tega McNally Minerals Limited is progressing well, contributing to growth and synergy gains. Capex plans

Current/ Expected Orderbook/ Pending Orders?

As of June 2024, the group-level order book stands at INR560 crores, compared to INR520 crores in June 2023, excluding long-term orders like NMDC in Tega McNally. NMDC order: Approximately INR120 crores to be executed over 24 to 26 months. The order book for both consumable and equipment business segments remains strong. The European order generates about INR10 crores of cash flow monthly, with steady execution over five-plus-one years. Growth in orders is supported by continuous product upgrades and strong market demand. Equipment business faced some delays in dispatch and payments, expected

IN US

Sale is live|00:00:00left today

Tega Industries LtdQ2 FY24Industrial Manufacturing

Tega Industries Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹1,705P/E: 59.0Market Cap: ₹11.9K CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company targets an average revenue growth of around 15% annually over the medium term.
→Consumable business expects about 15% revenue growth driven by high-quality solutions, product and service value additions, and continuous product upgrades.
→Equipment business aims for 15% revenue growth, with focus on integration and product upgrades post-acquisition of McNally.
→Market growth for mill liners is around 5%, but Tega is outperforming with over 15% growth, gaining market share.
→The overall mineral processing equipment market is bullish, with growth potential in domestic sectors like coal and iron ore.
→The total equipment business opportunity is estimated at $28-30 billion globally.
→The company is optimistic on copper and gold markets growing, supporting demand.
→Capital expenditure of INR 15-20 crores is planned for equipment business expansion.
→Long-term order book remains strong, supporting growth trajectory.

Margin guidance

Category 3

→The company projects a conservative average revenue growth of about 15% over the coming years, driven by high-quality solutions and product value addition.
→EBITDA margins are expected to be around 20-21% on a blended basis.
→Consumable business segment EBITDA margin improved to 21% in Q1 FY 2025 from 16% in the same period last year, indicating margin expansion.
→Equipment business is expected to recover revenue and EBITDA margins post delays in payment and dispatch clearances.
→Integration of Tega McNally Minerals Limited is progressing well, contributing to growth and synergy gains.
→Capex plans include $30 million for consumables (notably the Chile project) and INR15-20 crores for the equipment business, aimed at supporting future growth.
→Solar power initiatives will reduce power costs and support ESG goals, indirectly aiding profitability.
→Market share gains in mill liners (15%+ growth vs. 4-5% market growth) point to sustainable above-market earnings growth.

3 more insights locked — sign up free to unlock

Fundraise plans

- No specific mention of any current or planned fundraising through debt or equity in the transcript. - Sharad Kumar Khaitan indicated openness to acquisitions only if they are strategically right and at the right value, but no active acquisition or related fundraising was stated. - For capex, particularly in the equipment business, they plan INR15-20 crores investment, but no mention of how it will be funded. - The company appears focused on internal cash generation and conservative financial management; no explicit guidance on raising fresh equity or debt. - Solar projects and Chile expansion are underway with existing plans and approvals, but no new fundraising announcement related to these. Overall, no current or near-future fundraising through equity or debt has been declared in this call.

Order book

Yes

→As of June 2024, the group-level order book stands at INR560 crores, compared to INR520 crores in June 2023, excluding long-term orders like NMDC in Tega McNally.
→NMDC order: Approximately INR120 crores to be executed over 24 to 26 months.
→The order book for both consumable and equipment business segments remains strong.
→The European order generates about INR10 crores of cash flow monthly, with steady execution over five-plus-one years.
→Growth in orders is supported by continuous product upgrades and strong market demand.
→Equipment business faced some delays in dispatch and payments, expected to be regularized in Q2 FY 2025.
→New large orders, such as NMDC, indicate beginning of stronger bidding in domestic equipment market.

Capex plans

Yes

→Tega Industries has initiated a capex plan of about $30 million for the consumable business segment, primarily focused on the Chile project with construction already started. Commercial production from this new facility is expected by June 2025.
→Additional land of 51,000 square meters was procured adjacent to the Chile project site for INR 21 crores, intended for future expansion.
→In the equipment business, a capex of INR 15-20 crores is earmarked for reviving and expanding operations post the McNally acquisition.
→The company is open to acquisitions if they are strategically and financially viable, aiming at geographic expansion, capability enhancement, or technology advancement.
→Solar power installations are being set up at multiple plants (Samali, Kalyani, Dahej) totaling around 1600 to 1700 kW to reduce power costs and advance ESG goals.

How does Tega Industries Ltd rank vs peers in Industrial Manufacturing?

Pro feature

1Tega Industries Ltd

Rev 3Mar 3

See full Industrial Manufacturing sector rankings

Want more stocks like Tega Industries Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio