In This Article:
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Revenue: 1,030 crores for the second quarter, slightly above 1,004 crores in the first quarter, but down from 1,273 crores in the second quarter of last year.
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Sales Volume: 60,330 tons for the second quarter, compared to 77,000 tons in the same quarter last year.
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Operating Income: Export benefit portion at 13.70 crores.
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Forex and Treasury Income: 90 crores.
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EBITDA: 366 crores, down from 444 crores in the second quarter of last year.
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Profit After Tax: 256.72 crores, down from 323 crores in the second quarter of last year.
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Working Capital: 415 days total, including raw material at 55 days, work in progress and finished goods at 76 days, and credit days at 74 days.
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Net Cash: 3,212 crores after buyback payout, with a small debt of about 120 crores.
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CapEx Plan: 250 crores, including investment in renewable power, rubber liner plant, and 36,000-ton expansion for grinding media.
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Mining Sales Outside India: 39,800 tons, down from 52,000 tons in the second quarter of last year.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AIA Engineering Ltd (BOM:532683) reported a slight increase in sales from the first quarter, reaching 60,330 tons and generating 1,030 crores in revenue.
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The company's net cash position remains strong at 3,212 crores, even after a buyback payout.
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AIA Engineering Ltd (BOM:532683) is planning a CapEx of about 250 crores, which includes investments in renewable power and expansion for grinding media.
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The company is actively working on new customer acquisitions and remains optimistic about medium to long-term prospects.
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Despite current challenges, AIA Engineering Ltd (BOM:532683) maintains robust margins and continues to focus on growth opportunities in the mining sector.
Negative Points
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The company experienced a decline in sales volume compared to the same quarter last year, with a decrease from 77,000 tons to 60,330 tons.
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Profit after tax decreased from 323 crores in the second quarter of last year to 256 crores this quarter.
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AIA Engineering Ltd (BOM:532683) is facing slower sales due to a combination of supply chain issues and reduced offtake from mining customers.
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The company anticipates a 10% lower revenue volume for the full year compared to last year, primarily due to decreased demand from mining customers.
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There is uncertainty in the conversion cycle for new customers, causing delays in expected growth and impacting overall sales volumes.
Q & A Highlights
Q: Can you provide more details on the volume challenges and the impact on the US market due to ongoing litigation? A: The US market remains steady despite the ongoing litigation, and our business there continues as usual. The volume challenges are primarily due to logistics and supply chain issues, along with some softness in customer demand, which appears to be cyclical rather than structural.