Q3 2025 Steelcast Ltd Earnings Call Transcript
Key Points
- Steelcast Ltd (BOM:513517) reported a significant revenue growth of 34% in Q3 FY25 compared to Q2 FY25, reaching INR101.8 crores.
- The company achieved a 45% growth in EBITDA, excluding other income, from INR19.6 crores in Q2 FY25 to INR28.3 crores in Q3 FY25.
- Steelcast Ltd maintained a strong EBITDA margin of 27.8%, surpassing their usual guidance of 21-22%.
- The company remains debt-free for the past three years, contributing to high return ratios with an annualized ROCE of 27% and ROE of 20%.
- Steelcast Ltd is expanding its renewable energy capacity with two new power plants, aiming for carbon neutrality by 2030, which will also reduce costs by INR4.5 crores annually.
- The railroad components segment is facing challenges, with one part not meeting desired life expectations, delaying serial supply by two quarters.
- The company is reconsidering its focus on the competitive railroad industry due to better opportunities in other sectors.
- There was a litigation-related expense of INR2.31 crores, which the company had to provision for, impacting financials.
- Despite growth in Q3, the company experienced degrowth in sales and profits for the first two quarters of FY25 compared to FY24.
- Capacity utilization is currently at 50%, indicating underutilization of resources, with plans to reach full capacity only by FY27-28.
Ladies and gentlemen, good day, and welcome to Steelcast Limited Q3 FY25 earnings conference call hosted by Ernst & Young. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Kanav Khanna from Ernst & Young. Thank you, and over to you, sir.
Thank you. Thank you, Steve. Good evening, everyone. We welcome you all to Steelcast Limited's earnings call to discuss the Q3 and nine month FY25 financial results. Today from the management side, we have with us Mr. Chetan Tamboli, Chairman and Managing Director; Mr. Rushil Tamboli, Whole-Time Director; Mr. Subhash Sharma, Executive Director and Chief Financial Officer; and Mr. Umesh Bhatt, Company Secretary.
Please note that a copy of the disclosures is available in the Investors section of the website as well as on the stock exchange. Further, a detailed Safe Harbor statement is given on page number 26 of the Investor presentation of the company. Please note that anything said on this call,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
