Thread by @tushar9590

#GravitaIndia #Gravita
A possible E- Waste Recycling Play?

Just an overview on the outlook the co, based on last earnings call

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(1/N)

Co is into the business of manufacturing Non Ferrous Metals including Lead, Aluminum & Plastic using scraps.
Let's see the overall performance of the co in Q3.
(2/N)

Revenue in Q3 up 49 pct YoY wih Indian Biz contributing 63 pct, & rest by overseas Biz.
Increase in rev led by both Vol & Price. Vol growth of 14 pct shown by the co.
Value Added Products now 44 pct of total revenue
(3/N)

Increase of 110Bps in the Ebitda margins, at 9.6 pct, led by the volume growth, higher value added product & more consumption of Indian scrap.
Higher than expected Ebitda margin due to higher realization in Aluminum
(4/N)

Shift in the scrap availability from unorganized to organized helping Gravita to procure more from India.
Current consumption of scrap for India Biz now at 65 pct, 3 yrs back it used to be 25 pct.
(5/N)

Co to add another plant in America to produce additional 10000 Ton per year. Capacity increase in Ghana & Senegal by Q1 FY23, & to have a new plant in East india by next year.
(6/N)

On E-Waste Recycling, co to start a pilot project in next 2-3 years, to understand the operational know how of it.
(7/N)

Let's see the outlook ahead for the Co:
Next year volume growth to be 30-35 pct led by capacity expansion in all geographies.
On metal side, co is able to sell whatever it procures & recycles, so demand will not be an issue, while Plastic is more demand led
(8/N)

Co may go for a fund raise of not more than 300 crore, with a view of expanding as & when the right opportunity arrives.
Co is confident of maintaining the Ebitda margin of 8-9 pct going forward.
(9/N)

Co plans to reduce the working capital days by 10 days in next 2-3 quarters, led by reduction in inventory base, as capacity increases.

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