Exclusive: Reviewing Inox India's Q3 Results | Earnings Edge | NDTV Profit - video Dailymotion

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- What's behind #InoxIndia's Q3 earnings? - What are the companies growth strategies moving forward?   Samina Nalwala speaks to Siddharth Jain on 'Earnings Edge'.  ______________________________________________________   For more videos subscribe to our channel: https://www.youtube.com/@NDTVProfitIndia Visit NDTV Profit for more news: https://www.ndtvprofit.com/ Don't enter the stock market unaware. Read all Research Reports here: https://www.ndtvprofit.com/research-reports Follow NDTV Profit here Twitter: https://twitter.com/NDTVProfitIndia , https://twitter.com/NDTVProfit LinkedIn: https://www.linkedin.com/company/ndtvprofit Instagram: https://www.instagram.com/ndtvprofit/ #ndtvprofit #stockmarket #news #ndtv #business #finance #mutualfunds #sharemarket Share Market News | NDTV Profit LIVE | NDTV Profit LIVE News | Business News LIVE | Finance News | Mutual Funds | Stocks To Buy | Stock Market LIVE News | Stock Market Latest Updates | Sensex Nifty LIVE | Nifty Sensex LIVE

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00:00 Hello and welcome. We have a very special guest joining us today is Siddharth Jain of

00:13 INOX India. Remember INOX India listed very recently and had a bumper listing in the month

00:18 of December. The stock since then has been on an exponential up move. This is the first

00:23 quarter that they have reported earnings to the public. So Siddharth joins in to tell

00:27 us about it. Hi Siddharth, thanks a ton for joining us. I guess you are getting used to

00:32 reporting your quarterly earnings. This is the first of many firsts for INOX India at

00:36 least. So thank you for joining us. Firstly a quick update on how the quarter has been.

00:41 You have been growing substantially 25 to 30% growth year on year. It's been another

00:46 good quarter I believe for INOX India.

00:49 Sreenath, good morning and thank you for having me on your show. And indeed this is the first

00:55 quarterly earning for us for INOX India since we turned public. So I'm getting ready to

01:02 start enjoying this quarterly talk with you. So yeah, I think we have done pretty well

01:10 this past quarter. On an average we did about 295 crores in sales. We grew almost 18% year

01:18 on year. EBITDA grew at about 20-22% and so did our PAD. So this is consistent with what

01:25 we have been saying during the IPO process. For the past 7 years we have grown at an average

01:31 of 20% a year and that is the indication we have given to the market as well. And the

01:37 way we see our business and our verticals growing in the future at pretty much a similar

01:43 average. Not on a quarterly basis of course, but because the products that we make have

01:49 a longer gestation cycle. But if you look at it on an annualised basis, we certainly

01:54 see this trend continuing at a similar growth rate that we have done in the past 7 years.

02:01 So it's fair for me to assume that a few quarters out you will continue to grow at this run

02:05 rate 27-30%? You know as I mentioned we have grown at 20% for the past 7 years. 27% would

02:15 be a dream. I wish we get there. We are working towards it. Obviously I can't predict the

02:23 future but I am pretty confident that we should be able to continue our past trend going forward

02:27 as well. You know the business segments that we are in and the positioning that we have

02:32 as a company, INOPCBA is one of the world's leading players in cryogenic equipment. We

02:39 have built an extremely strong brand based on 30 years of experience and a foundation

02:45 for the quality of the product that we make in India is better if not at par to the best

02:53 products being made in the world. And there are not too many companies globally making

02:57 this. So we are fortunate to have developed this in our skill set. We make in India and

03:02 we export to the entire world. Right. Siddhartha, couple of things. Your order book I believe

03:09 stands close to 1050 crores. I am looking at the split, 50% of it comes from industrial

03:15 gas. LNG is about 23% versus what we have seen in the same quarter last year was about

03:22 36% from what I understand and cryo-scientific has also gone up. Any sort of indication of

03:29 why the LNG order wins have reduced? I mean of course it has been supported by an increase

03:34 in cryo-scientific but just build on that and tell our viewers what is really going

03:39 on there. Yes, thank you Suveya. So you know we have three divisions as you rightly pointed

03:44 out. We have an industrial gas division, LNG division and cryo-scientific. And all three

03:49 of them cater to a very different set of customer base. You can imagine for example cryo-scientific,

03:56 these projects where we get them from customers like ITER, these are global fusion projects

04:04 happening in France, Germany, Switzerland. There is the CERN project, the FAIR project.

04:10 When they give orders, these are multi-year orders and they are very lumpy in nature.

04:17 You get a large order in one year, then you may not get something the next year and another

04:21 large order the next year. So we cannot measure cryo-scientific on a quarter basis. Similarly,

04:28 LNG is slightly less lumpy but it is still because you get these big regasification station

04:35 orders on a global basis, whether it is a mini satellite receiving terminals like we

04:42 have done in Scotland and Antigua. We get orders on LNG, we have a lot of orders coming

04:48 in from South America, whether it is Chile, Brazil. So the cycle of order intake is unpredictable

04:57 in LNG as well. But when you look at it on an annualised basis, that is the way we focus

05:03 on it. So every business is different and our cryogenics business cannot necessarily

05:09 be measured on a quarter on quarter, year on year basis. Annual will be the right way

05:13 to do it. The industrial gas division is more stable, that is less lumpy and less order

05:20 intake and it shows in our numbers as well.

05:23 Sudhant, explain the order cycle to me, right? From winning an order that is showing up on

05:29 your order book to actually executing to cash flow and completion. What is the usual timeline?

05:37 What is the process of winning these orders, creating these partnerships and of course

05:40 in concluding it and booking it as profits or top line?

05:44 So Sameera, about 75% of our order book comes in non-standard products and 25% comes in

05:51 standard products. The cycle time to execute is about 4 months, 4 to 5 months for our standard

05:58 products and 8 to 12 months for our non-standard product. So you see this, the order backlog

06:04 that we have over 1000+ stores, it will certainly get consumed in this year and then on a monthly

06:11 basis we keep getting new orders as well and those get executed within the year.

06:18 Right. You know when you talk to us about listing and wanting sort of people to know

06:24 how the kind of work you are doing, talking about how putting India on the map and this

06:28 is such an interesting business and highly technical as well. How is the international

06:34 market looking for you from what I understand in the third quarter what 51% of your orders

06:39 did come from outside versus 70% that we have seen in the previous quarter. Give me a sense

06:45 of any orders that could be potentially coming through from the international market, anything

06:50 that you are in conversation with right now, quantify that for us.

06:54 So in fact last quarter our export revenue which was about 50% of our top line was the

07:02 highest quarterly revenue we had ever achieved and from an export perspective, well and from

07:08 the quarter perspective. But our export revenue was extremely healthy last quarter. Coming

07:13 to order intake, the purpose of doing an IPO was in fact to gain, one of the main purposes

07:22 was to gain visibility for our company so that we can reach a much wider global customer

07:28 base, people that we had not been to earlier. And in fact that has really paid off. The

07:37 kind of interest we have seen in our company in the past two months since we have gone

07:41 public is extremely heartening and our teams are fully geared and excited to cater to that

07:50 demand. In fact we just inaugurated a new plant in Sabli outside of Baroda a couple

07:56 of weeks back and it is, we are making a new segment, stainless steel beverage containers

08:02 and industrial tanks and a lot of that is going to be for the export business as well.

08:08 So we are very excited about it and we are seeing a lot of traction in all three segments,

08:14 starting with Cryoscientific. Cryoscientific we are really seeing the three large global

08:19 projects increase their interest in us. We are actively pursuing a very large quantity

08:26 of bids with all three, whether it is the ETA project, CERN and Fed and we certainly

08:32 hope over the next 12 months to secure some large orders there. Similarly LNG, we are

08:38 seeing the adoption of LNG increase and more widespread in far off countries, countries

08:47 which did not consume as much LNG. The reduction in gas prices globally is really helping the

08:53 adoption of LNG. We are seeing India, you asked earlier about our partnership with the

08:59 Adani Tokran Gas, we are super excited about it. Adani of course is one of the foremost

09:05 players in India in the infrastructure space. They are extremely committed to expanding

09:11 the LNG footprint in India, especially for heavy vehicle fueling and we have the most

09:20 diverse product line for the entire supply chain to move LNG. LNG is a product that is

09:27 at minus 160 degrees centigrade. So if you have to build out an infrastructure to fuel

09:36 heavy duty trucks on a pan India basis and you are moving a product which is at minus

09:42 160 degrees centigrade, there is a significant amount of technology involved in that and

09:48 we are very happy to partner with India's leading player on it.

09:52 [MUSIC]

Exclusive: Reviewing Inox India's Q3 Results | Earnings Edge | NDTV Profit

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