In This Article:
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Revenue: INR 1,050 crores for the quarter.
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Sales Tonnage: 65,780 tons, up from 60,000 tons in the previous quarter, down from 74,000 tons in the same quarter last year.
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EBITDA: INR 354.57 crores for the quarter.
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Profit After Tax: INR 259.22 crores, compared to INR 256 crores in the previous quarter and INR 280 crores in the same quarter last year.
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Other Operating Income: INR 16 crores, primarily from export benefits.
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Non-Operating Income: INR 67.32 crores, including treasury income of INR 58 crores and forex gain of INR 8 crores.
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Realization: INR 160 per kilo for the quarter.
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Full Year Volume Guidance: Expected between 250,000-260,000 tons.
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CapEx for New Plants: Estimated at $50 million for plants in China and Ghana.
Release Date: February 07, 2025
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 sequential increase in sales tonnage from 60,000 tons to approximately 66,000 tons.
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The company has announced plans to set up modular production plants in China and Ghana, aiming to reduce freight costs and improve market access.
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AIA Engineering Ltd (BOM:532683) has maintained strong operating margins, consistently achieving around 27-28%, which is higher than previous guidance.
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The company is utilizing the latest manufacturing technology to reduce capital investment and improve efficiency in new plants.
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Management expects a return to a predictable growth path with an annual volume increase of 25,000 to 30,000 tons in the coming quarters.
Negative Points
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Sales tonnage decreased compared to the same quarter last year, from 74,000 tons to approximately 66,000 tons.
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The company has experienced a de-growth this year, with a projected annual volume of 250,000 to 260,000 tons, down from previous years.
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There is uncertainty regarding the exact timelines for the operationalization of the new plants in China and Ghana.
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The liner business has been slower than expected, with full utilization taking longer than initially anticipated.
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AIA Engineering Ltd (BOM:532683) is not ready to provide specific guidance on volume growth due to ongoing market uncertainties.
Q & A Highlights
Q: With the shipping freight rates starting to come down, how does this impact your volume scaling, and what are the timelines for the China and Ghana plants to be operational? A: The environment is improving, and we expect to be back on a 25,000 to 30,000-ton annual growth basis over the next few quarters. The China plant should start contributing in the second half of next year, while the Ghana plant is expected to be operational in about 18 months. These timelines are broad indications, and more specific guidance will be provided as progress becomes clearer.