Ganesh Ecosphere Ltd conducted their conference call today at 2:30 pm.
" On mission to surpass CAGR Growth in topline (12%) and bottom line (13%) achieved during last one decade. "
Here are the key takeaways 😁😁...
" On mission to surpass CAGR Growth in topline (12%) and bottom line (13%) achieved during last one decade. "
Here are the key takeaways 😁😁...
Business Overview
- There has been a 10% increase in the production volume on QoQ basis and it's up by 17% on yearly basis.
- This strong result in business has been due to increase in their sales price and improved gross margins.
- There has been a 10% increase in the production volume on QoQ basis and it's up by 17% on yearly basis.
- This strong result in business has been due to increase in their sales price and improved gross margins.
- This time Company didn't gained much of investment income due to fall in yields of debt funds.
- There has been a very strong focus on getting the most PET waste which can be converted into rPET for usage in other industries.
- There has been a very strong focus on getting the most PET waste which can be converted into rPET for usage in other industries.
- During this quarter with growth seen in production volume as mentioned above, there has been a reduction in sales volume.
- The hard hit textile sector is on its recovery path.
- The hard hit textile sector is on its recovery path.
- Filatex co. Is recycling polyester base and not pet bottle as a part of Chemcial business so it's not related to us.
- EPR certificate issuance was done due to plastics guidelines by government. It is good opportunity for their industry.-
- EPR certificate issuance was done due to plastics guidelines by government. It is good opportunity for their industry.-
- Related to Exports, In Fy21 about 7% of turnover was from it. And with new plants in South will help to generate more from it.
- Company dosent have any fixed clients if any peer give cheaper they can move out to other 38 other peers present in same Business.
- Company dosent have any fixed clients if any peer give cheaper they can move out to other 38 other peers present in same Business.
Market base.
- They have a strong customer base of more then 300+ clients who are large players in consumption of yarn and fibers.
- They have a strong hold on supplier as well, to avail raw material from the scrap dealers.
- They have a strong customer base of more then 300+ clients who are large players in consumption of yarn and fibers.
- They have a strong hold on supplier as well, to avail raw material from the scrap dealers.
- Along with above advantage they got huge variety of products in recycled polyester staple fiber and spun yarn.
- In this virgin fiber is prices at 87 88 and we are priced around 77 around. This differences will remain same. Demand and supply will impact this.
- In this virgin fiber is prices at 87 88 and we are priced around 77 around. This differences will remain same. Demand and supply will impact this.
- Import duty on PPA and other has impacted a bit.
- On collection of pet bottles is bought from dealer and trade at price which previals. They have started their own centers as well for collection of it.
- On collection of pet bottles is bought from dealer and trade at price which previals. They have started their own centers as well for collection of it.
- About 350 Ton per day , at 39 rs per kg is collected.
- There are new areas in which company is looking forward like
1. Anti- microbial Fiber with licensed tech.
2. Bio-degradable Fiber.
3. High tenacity Fiber.
4. Micro Fiber.
5. Dope dyed Fiber.
- There are new areas in which company is looking forward like
1. Anti- microbial Fiber with licensed tech.
2. Bio-degradable Fiber.
3. High tenacity Fiber.
4. Micro Fiber.
5. Dope dyed Fiber.
- This segments will be done after gaining certificate for them. As still they are at early stage management can't state future.
- Along with that company will increase its share in non woven and technical textiles sector as their prices are more stable and has better margins.
- Along with that company will increase its share in non woven and technical textiles sector as their prices are more stable and has better margins.
Financials
- Strong's performance of the company has boosted quarterly revenues by 23%,
Ebitda margins by 400+ bps and pat by 13% approx.
- Company is well cash managed and has generated about 72 Crs this financial year up by 21%.
- Strong's performance of the company has boosted quarterly revenues by 23%,
Ebitda margins by 400+ bps and pat by 13% approx.
- Company is well cash managed and has generated about 72 Crs this financial year up by 21%.
- There has been a reduction in Employees benefits expenses to 48 crs on yearly basis but on Quarterly basis they are higher.
- Various alternatives are used to conduct recycling work better then before.
- The company focuses on improving their working capital cycle further.
- Various alternatives are used to conduct recycling work better then before.
- The company focuses on improving their working capital cycle further.
- The Company is looking forward to generate about 30% margins in their new fiber which was moved in South region.
- Tax rate is 25% for business but for their south region it is about 17%.
- Company does received various subsidies for long time.
- Tax rate is 25% for business but for their south region it is about 17%.
- Company does received various subsidies for long time.
Capacity and Capex
- Company has increased its quarterly untilisation by 9% to 104%
- At present Company has a total capacity of about 118800 TPA.
- Company has increased its quarterly untilisation by 9% to 104%
- At present Company has a total capacity of about 118800 TPA.
- Company has innitiated an additional rooftop solar power plant of 2.2 MW during this quarter.
- At present there are 3 manufacturing sites in Kanpur, Bilaspur and Rudrapur.
- And a new capacity addition will be done in Telangana by Q4Fy22. It is slightly delayed.
- At present there are 3 manufacturing sites in Kanpur, Bilaspur and Rudrapur.
- And a new capacity addition will be done in Telangana by Q4Fy22. It is slightly delayed.
- Due to lockdown and supply side issues. It's capacity is 53k and 250 cr cost is already handled.
- Nepal takeover situation has also delayed due to similar reasons.
- The new plants launches will be done with next 6 months and they will try to do it without any delay.
- Nepal takeover situation has also delayed due to similar reasons.
- The new plants launches will be done with next 6 months and they will try to do it without any delay.
- South plant will help the company to generate revenue of about 70 cr from fy 23.
- The estimate cost of South total will be about 400 crs.
- Company has huge growth ahead as per the management so, they will do their best for it.
- The estimate cost of South total will be about 400 crs.
- Company has huge growth ahead as per the management so, they will do their best for it.
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