Q2 2025 Electrosteel Castings Ltd Earnings Call Transcript
Key Points
- Electrosteel Castings Ltd (BOM:500128) reported a 6.5% year-on-year increase in total income for H1 FY25, reaching INR 3,885 crores.
- The company's net debt to equity ratio improved to 0.27 times as of September 30, 2024, indicating a stronger balance sheet.
- Long-term credit rating was upgraded from AA- to AA by India Ratings, reflecting improved financial stability.
- The company is on track with its CapEx plans, aiming to enhance DI Pipe manufacturing capacity to 1 million tons by FY26.
- Electrosteel Castings Ltd remains a leader in the Ductile Iron pipes market in India, benefiting from strong demand driven by government initiatives like Jal Jeevan Mission and AMRUT 2.0.
- Total income for Q2 FY25 decreased by 4.6% compared to the same quarter last year, primarily due to a plant shutdown.
- EBITDA margin for Q2 FY25 declined by 82 basis points year-on-year to 15.6%, impacted by lower volumes.
- The company experienced a temporary slowdown in order inflows from the government, affecting the order book.
- Export sales contributed only 13% to total DI volumes in H1 FY25, partly due to high ocean freight costs.
- The company faced operational challenges with the blast furnace at the Srikalahasthi unit, leading to a seven-day shutdown and impacting production volumes.
Ladies and gentlemen, good day. And welcome to the Q2 and [H1 F5 25] earnings conference call of ELECTROSTEEL CASTINGS LTD.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star and then zero on your Touchstone phone.
I now hand the conference over to Mr. Vikash Verma from Ey LLP. Thank you and over to you.
Thank you, Mike.
Good evening, everyone on behalf of ELECTROSTEEL CASTINGS LTD. I welcome you all to the [quarter to 25] earnings call. To discuss the performance of the company. And to answer the questions we have with us from the management team, Mr. Madhav Kejriwal, whole time director, Sunil Katial whole time director and CEO, Ashutosh Agarwal whole time director and Chief Financial Officer and [Mr. Somani].
Before we proceed with this call, I would like to draw your attention to the fact, that
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