Ganesha Ecosphere conducted their earnings con-call today at 10:00 am
"Golden opportunites in the business to environmental fibre"
Here are the key highlights ππ
#concall
"Golden opportunites in the business to environmental fibre"
Here are the key highlights ππ
#concall
Business Updates:
β’ Closed with 300 customer.
β’ Plants started in phases. Recovery of textile sector in pandemic was slow.
β’ Price of certain products has reach to pre-covid level.
β’ With new capacity company is going to do filaments yarn and spurt yarn.
β’ Closed with 300 customer.
β’ Plants started in phases. Recovery of textile sector in pandemic was slow.
β’ Price of certain products has reach to pre-covid level.
β’ With new capacity company is going to do filaments yarn and spurt yarn.
β’ Bio-degradable fibre has capable of bio-degrade in land and ocean within an year.
β’ company will be also starting short cut fibre which have application in cement industry.
β’ Company is also working on re-cycle footprint which will have edge in the market over long term.
β’ company will be also starting short cut fibre which have application in cement industry.
β’ Company is also working on re-cycle footprint which will have edge in the market over long term.
β’ Company is also representing its product in international market and attaching the product in Europe and USA.
β’ Industry: There has been revival in the industry and company expects the growth to start soon.
β’ Industry: There has been revival in the industry and company expects the growth to start soon.
β’ Supply Chain: Back on track and the receivables are slowly recovered
β’ Co. is using mechanical process as its good and cheaper with respect to chemical process
β’ Co. is using mechanical process as its good and cheaper with respect to chemical process
EBIDTA Margin:
β’ Company expect the margins to go up with the production of value added product
β’ Recycle product is commanding higher margin in the market, and company expects EBIDTA margins to be around 25% in South side. (This doesn't includes the subsidies from South govt.)
β’ Company expect the margins to go up with the production of value added product
β’ Recycle product is commanding higher margin in the market, and company expects EBIDTA margins to be around 25% in South side. (This doesn't includes the subsidies from South govt.)
New pant: (Products:Fibre, Filament and Pet chips)
β’ FY 2022 it will be operational and Q2 FY23 company expects it to be fully operational
β’ Trunover of around 500 crore
β’ Product made here will be filament yarn which will be used by companies like Zara and big retailing brand
β’ FY 2022 it will be operational and Q2 FY23 company expects it to be fully operational
β’ Trunover of around 500 crore
β’ Product made here will be filament yarn which will be used by companies like Zara and big retailing brand
Order Book:
β’ Specialty Fibre and Bio-degradable fibre will have good growth but it will take some time. This product will be starting from Europe and then will expand in other region as well.
β’ Specialty Fibre and Bio-degradable fibre will have good growth but it will take some time. This product will be starting from Europe and then will expand in other region as well.
Recycle product is commanding higher margin in the market, and company expects EBIDTA margins to be around 25% in South side.
Raw Material:
β’ Company will have key advantage on raw material and there will be saving of 2-3per kG freight cost as the raw material comes from South.
Raw Material:
β’ Company will have key advantage on raw material and there will be saving of 2-3per kG freight cost as the raw material comes from South.
Export:
β’ 60 crores is the export sales (Around 6-7% of the total sales).
β’ Company only export when the margins are high, and its exported in near about 18 countries.
β’ Current capacity is around optimum.
β’ 60 crores is the export sales (Around 6-7% of the total sales).
β’ Company only export when the margins are high, and its exported in near about 18 countries.
β’ Current capacity is around optimum.
β’ Share of value added product products is around 30-35%.
β’ Spinning and Woven deliver good margins around 35-40%
β’ Spinning and Woven deliver good margins around 35-40%
Industry Size:
here is 30% Domestic consumption gap in Pet chips. South market is having 40% of the pet resign with respect to other region in India. Hence there is good growth available.
here is 30% Domestic consumption gap in Pet chips. South market is having 40% of the pet resign with respect to other region in India. Hence there is good growth available.
Debt:
β’ Gross debt is around 134 crores with investment of 104 crores.
β’ After the completion of plant debt would be at around 200-250 crores.
β’ New plants are with the guidelines of US FDA Approval, hence there is not environmental concerns.
β’ Gross debt is around 134 crores with investment of 104 crores.
β’ After the completion of plant debt would be at around 200-250 crores.
β’ New plants are with the guidelines of US FDA Approval, hence there is not environmental concerns.
β’ β’ β’
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