ELECTCAST 3rd Time Knocking its All Time High with Weekly Hammer

19 ก.ค.

ELECTCAST

The company was incorporated in November 1955, as Dalmia Iron & Steel Ltd and re-incorporated under the name of ECL in May 1965. ECL manufactures DI pipes with combined installed capacity of 7,45,000 MTPA. Combined production capacity for DI fittings and cast iron pipes is 21,000 MTPA and 90,000 MTPA, respectively. Through backward integration, the company also operates a blast furnace, coke oven and waste heat recovery-based power plant. Plants are in Khardah and Haldia in West Bengal, Elavur in Tamil Nadu, and Srikalahasthi in Andhra Pradesh.


Strengths:

Established position in the pipes industry with significant backward integration: The three-decade-long experience of the promoters in the ductile iron (DI) pipes industry has helped them establish significant market presence, expand production capacities, and undertake backward integration over the years. The facility is already utilised by over 90% and ECL plans to further add capacity of more than 2.5 lakh metric tonne per annum (MTPA) over the next two fiscals. This will enable the company to retain its leadership position in the DI pipe market. The company maintains strong trade relationships with reputed overseas customers and all major players in the domestic market. Limited competition, owing to large capital requirement and necessity to have critical accreditations and customer approvals, bolster the business risk profile. Performance is further supported by improving global and domestic demand, as reflected in a strong order book providing healthy revenue visibility.


Healthy financial risk profile: Networth and gearing have improved to Rs 5,111 crore and 0.44 time, respectively, as on March 31, 2024 (Rs 4,376 crore and 0.6 time, respectively, a year earlier), backed by better profitability and hence, steady accretion to reserves. Lower dependence on external debt and better working capital management should also aid the financial risk profile. Debt protection metrics remain comfortable with interest coverage and net cash accrual to adjusted debt ratios at 5.7 times and 0.34 time, respectively, in fiscal 2024.


Order Book
6 lakh tonnes let say, so about nine to 10 months of Healthy Order Book.

worth of
Around Rs. 4,500 crores approximately.



Financial Highlights

Revenues at INR 7,580 Crores, Highest ever
yearly EBITDA and PAT at INR 1,281 Crores
and INR 740 Crores, respectively in FY24

➢ EBITDA margin and PAT margin at 16.9%
and 9.8%, respectively in FY24

➢ Adjusted FY24 ROCE at 19.0% (FY23 -
13.0%) and ROE at 19.3% (FY23 - 11.2%)

➢ Strong Order Book visibility of 10 months



Other Financial Metrics

EBITDA grew by 50.9% YoY to INR
346 Crores in Q4FY24, the EBITDA
margin expanded by 495 bps YoY to
17.0%.

• Highest ever PAT of INR 227 Crores,
up by 153.8% YoY in Q4FY24, PAT
margin expanded by 645 bps YoY to
11.1%.

• Decline in interest cost by 33.3%
during the quarter.


Effective Positive Policies

Jal Jeevan Mission (JJM): Driving Water Infra Demand


➢ The Government’s flagship scheme - Outlay of INR 3.60 lakh crores

➢ Providing water supply by to every crore rural household at a
capacity of at least 55 litres per capita, per day (lpcd) by 2024

➢ Providing Functional Household Tap Connections (FHTCs) to 19.4
crore rural households and village institutions

➢ Prioritising quality-affected villages (drought prone & desert areas



Additional Government Schemes Driving Water Infra Spending

AMRUT 2.0: INR 2,99,000 Crores

(Launched by Hon’ble PM on 1st Oct 2021)

➢ Aims to provide 2.68 Crore water taps connections in 4,800 statutory
towns

➢ New 2.64 Crore Sewerage/Septage services in 500 AMRUT cities