Analyst Meet / AGM - Analyst Meet

28-Mar-2017, 11:28
The company held its investor meet on 27^th March 2017 which was addressed by Mr. Manish Singhi MD

Key Highlights

On QoQ basis, there has been a significant improvement in volumes of asbestos roofing post Dec'16. The demand has almost fully recovered and whatever is left out will be recovered in FY'18. Still one can see some postponement of demand from rural side of the market, which is still not completely recovered.

Most of the dealers now are ready for GST. The company does not expect any major impact on its financials in terms of tax prospective, as it is losing tax advantage in one plant while gaining somewhere else.

Internationally, Middle East still continues to struggle, while rising oil prices is helping the recovery. But the pace is slow and only from June'17 onwards, recovery will be strong.

Domestically, the demand of panels and boards are on a rise and so are the realisations. The company is aggressively marketing this segment and is trying to gain higher market share. There was higher advertisement expenditure in FY'17, the benefits of the same will be visible in FY'18 and way forward.

Management expects to incur a capex of around Rs 25 crore for improving the quality and quantity for boards and panels. Post capex the boards and panels capacity will increase from around 11000 tons a month to around 14000 tons a month.

On steel building side, the rising steel prices continue to remain a worry. But the company has passed on the rise in new contracts which will be executed in FY'18.

Company continues to have strong order book of around 36000 tons in steel building.

As of now as per the management, there are no plans to hive off the steel building segment, but management is open for taking any strategic calls, depending upon the offer.

Overall, things have improved in India as far as demand is concerned on QoQ basis and an overall recovery will start flowing only from April'17 onwards.

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