Q1 2027 Kalyani Forge Ltd Earnings Call Transcript
Key Points
- Q1 FY27 PAT surged 218% YoY to INR4.48 crores, with EPS at INR12.31.
- EBITDA margin hit an all-time high of 16.2%, up 640 basis points YoY.
- ROCE crossed 20% for the first time, improving to 22% from 18% in Q4.
- Revenue grew 3.9% YoY and 13.2% QoQ, reaching INR67.07 crores, the highest in five quarters.
- Cash conversion cycle improved to 148 days from 168 days, reflecting tighter working capital management.
- New business revenue reached an all-time high of 22% of total revenue, with wheel hub samples in progress.
- Debt-to-EBITDA improved to 2.51, below the target level, indicating a healthy deleveraging trend.
- OEM revenue grew 31% YoY, marking the fourth consecutive quarter of growth.
- Vridhi Council cost savings of INR19.1 crores realized to date, targeting INR50 crores annually.
- Machining capacity utilization is high at 90-95%, with plans to expand to 3 lakh pieces per month by FY27 end.
- Agro business declined 31% YoY due to phasing out of legacy low-margin businesses.
- Revenue growth was modest at 3.9% YoY, indicating a slow top-line expansion.
- Cash conversion cycle remains high at 148 days, though improved, indicating ongoing working capital challenges.
- The company does not provide revenue guidance, creating uncertainty for investors.
- Debtors have been on the increase, requiring more structured collection efforts.
- The company plans to raise equity in the future, which could dilute existing shareholders.
- Forging capacity utilization is only 50-60%, indicating underutilization in that segment.
- The wheel hub line installation is expected to be operational only by end of Q2, delaying potential revenue contribution.
- The company is targeting a 20% EBITDA margin but has not provided a specific timeline, indicating uncertainty.
- The agro segment's decline and phasing out of non-fit businesses may lead to short-term revenue volatility.
Good morning everyone, ladies and gentlemen. I welcome you all to Kalyani Forge Ltd Q1 financial year 2026-2027 investor conference call. I am Yash Patil. Investor Relations Manager. (Operator Instructions) We hope you have received our Q&A, financials, and press release that we sent out, which are also available on our website.
Please note that our remarks today include forward-looking statements regarding our strategic initiatives and business performance. Actual results may vary materially from this projection due to various risks and uncertainties. Kalyani Forge Ltd undertakes no obligation to publicly update this statement to reflect future events or circumstances.
Thank you, Yash. Good morning, everyone, uh, and welcome once again to our quarterly investor call. Weâre happy to see many of the familiar faces as well as a lot of new investor interest in todayâs call. So without any further delay, letâs get started. Weâll
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