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00:00Hello and welcome back to NDTV Profit. You're watching Earnings Edge. I'm your host Meeka Barve and with me is Anushi
00:12Vakharia. And on this edition we're going to address certain companies are on in focus on the back of their earnings. But
00:18before we move on to what we have in store for you today let's just take a quick market checks mark the benchmark and the
00:24broader markets are in the red. The Nifty 50 down over a percent now. And it was we did open on life highs but it was
00:32around 10 a.m. where the market started to dip and the negative momentum has persisted. When you look at the point
00:41contribution it's Reliance Industries HDFC Bank and L&T that are dragging the index down whereas Bajaj Finance and
00:50Coal India do have some amount of strength on their counters. Coal and India on the back of earnings and Bajaj Finance as the
00:57RBI lifted the bands on the EMI cards. And when you look at the advance decline ratio it's in the favor of the best 39 advances
01:07on the Nifty 50 with only 11 advances. When you look at the broader markets not as much as a steep fall as the benchmark but in
01:16the red. Nonetheless you have the Nifty mid cap 150 down over a point five percent on the Nifty small cap which is down over 0.78
01:27percent. But we now move on to the first company that we do have in focus today. And that is KDI Industries. And we're joined by the
01:36CMD of the company Mr. Anil Gupta. Good afternoon Mr. Gupta. Good afternoon. Good afternoon. So overall a good end to fiscal 2024. You
01:46close the year up 17 percent in revenue which is much higher than your guidance. So what could you maybe give us a call on how the
01:53quarter went by for the company as well as the industry. I think for a for our company it went very well. We grew by 18.9 percent in terms
02:07of revenue but in volume terms we did more. We grew by 24 percent compared to same quarter last year. I think overall for the industry
02:19also while it was good. But I am. I don't have the exact numbers of others but I can definitely talk about our sales. Overall we see a good
02:31demand trajectory from our domestic markets as well as export customers. And we feel that is even this current financial year we will
02:41continue to be the strong to be a strong year. Hi Mr. Gupta. And is she joining on the other side over here. So now we have maintained about
02:5316 to 17 percent of our revenue growth over the last year. Do we maintain a similar trajectory also going forward in FY 25. So can you shed more
03:02often revenue outlook over here for the next year. And also on the EBITDA same the margins remain in the 10 to 11 percent of a range. But you did
03:10show that there is going to be one to one and a half percent of an uptick. So how is it going looking forward in FY 25 over you.
03:20We are definitely looking for a growth of around 16 to 17 percent in this financial year as well. And overall for the full year
03:30we estimate that our EBITDA may be around 11 percent similar what we have achieved in this financial last financial year. So
03:42and this growth will come from the capacity additions we have done in all our existing plants in last year and which are now commissioned and
03:54some more capacity will be commissioned by end of June this year. And I wanted to ask Mr. Gupta now when you look at the revenue
04:02breakup it was the SS wire segment which was the only segment that saw a downtick in revenues. Could you maybe give some light on why
04:11that happened. See actually there is no down. There was no downside. We have maintained our volume in stainless steel via division
04:19also only because the price reduction of stainless steel wire or input prices the revenue has come down. Moreover stainless steel
04:30is a very small segment of our whole business and it is not our core business area overall.
04:39And when you look at the order book I want to know what where the current order book stands at and in terms of segment what is the
04:46breakup. And maybe if you could tell us about the execution timeline of the same.
04:52We have around three thousand five hundred course of order book and out of which around seven seven seventy code is the EPC
05:01around the rest is all wires and cables mainly cables and normally the execution time of the cables orders on three to four
05:12months. So they should be. And every month we are you know building up the order book month after month for our wire and cable
05:23business. So far as B2C business is concerned which is almost 47 percent of our total business that part we don't include in our
05:34order book because those orders comes in are executed within 15 days from our stocks. So with those orders are never included in
05:42the order book. So and monthly intake is strong and meeting our requirements.
05:54Mr. Gupta staying on the order book over here. So in which segment are we looking at more orders flowing through. If we had to go
06:01forward from here. And when do we typically see these orders are translating into revenues going forward.
06:07Madam I just said that these orders will be except EPC. All major orders are executed within three to four months. So the order
06:18book is out only says seven seventy seven core EPC orders which are long term which will be executed over a period of 18 to 24
06:29months. But rest of the orders are all executed within three to four months from now. And every month we are building up a new order
06:38book and executing them in our maximum delivery period is three to four months from the peak from taking the order. So that is the
06:48position. God it's around two thousand seven hundred crores of order books that could potentially get executed in the next three to
06:55four months. But Mr. Gupta I want to talk about the capex. Now if I 24 you did a capex around 400 crores. What is the guidance or
07:04target for FY 25. And how will this capex be broken up plant wise.
07:12We expect to do a capex of around 1000 core in this financial year out of which 100 core will be spent in 100 220 core rupees will be
07:22spent in our existing plants to where the plant new capacity has come up in the brownfield expansion and the rest of the capex will come up
07:32around 8 9 8 80 to 8 8 90 core at our son and the new greenfield project which is coming up. So so thousand core this year and another 600
07:44core next year will be the capex plan for our overall expansion.
07:50Also Mr. Gupta now majority of the brownfield capex that we made out of Sylvester planned that took place in Q4. But now again this just started
07:59Q4 on onward. So now going forward in FY 25 what is the kind of capacity utilization that we are looking at. And can you also share the update
08:07on how the greenfield field capex is panning out to be.
08:11We expect to achieve almost 90 to 95 percent capacity utilization in our cable business around 75 percent to 80 percent in wires and in this
08:28financial year. So far as capex at the new facilities coming up I think all the major civil activity civil construction has started all the
08:40major orders for plant and machinery has been ordered. So the machinery should start pouring in by the end of this year. And our expectation
08:54is that in the first week of next financial year first phase of that expansion should be commissioned for commercial production.
09:02Got it Mr. Gupta. My next question is regarding exports. How strong is the export opportunity that the company is foreseeing. And do you all have a
09:12certain kind of target in terms of revenue contribution.
09:18Last year in exports we have grown by 58 percent. We achieved close to 1100 crores in exports and expect to grow by around 50 percent in the
09:29current financial year also considering the attraction in the demand. And we are also developing more newer markets and more and more
09:41customers with our sales strong and by building up a strong sales network.
09:49Mr. Gupta sticking to the exports over here in which particular countries or segments we are looking more of these export orders coming in
09:56from. And in terms of margins now that we have a strong growth over here how are the margins different different in the export business
10:03compared to the domestic one. Our major export markets are Australia and Middle East and Africa so far. Now from last year we started our
10:15exports to United States and as well as Europe. So far as margins are concerned I think margins are similar in nature because we have to take
10:25care of you know freight etc. in our export shipments.
10:32Gauran Mr. Gupta now in the last three fiscals we've seen the retail sales becoming a significant contributor. So is this do we have an aim to
10:43have a 50 percent mix here. What is the growth trajectory for the same.
10:47We achieved 47 percent sales from B2C segment this last year. And our aim is to reach out to 50 percent level in this financial year. And we are
10:57quite confident that that that should happen.
11:01OK thank you Mr. Gupta for that. One last question. What is your order book guidance for F5 25. What's the kind of growth you're
11:11expecting. And maybe in terms of domestic and export mix how do you see the order book panning out going forward.
11:19First of all we are not an EPC company where order book really matters.
11:28This I've already explained.
11:30And growth I mentioned that we are targeting a growth of 16 to 7 17 percent in our sales revenue both from domestic as well as exports put
11:44together. That is that means turnover and EBITDA margin. I have already given that what we are aiming for. And I think I have answered your
11:57questions.