This is a completely debt-free investment as the company set up in the 1990s has long been debt-free. The expansion is fully funded by the Rs 384 crore raised from the preferential warrants issue in March, Dhruv Singla, an executive director & chief financial officer, who is also the son of the managing director Madan Mohan Singla, told PTI.
The company has four mills-Malegaon, Raipur, and Mandi and Derahbasi in Punjab, with an installed capacity of 5.84 lakh tonne, of which 84,000 tonne were added in 2022-23, Pranav Singla, another executive director said.
They said half of the company’s revenue came from domestic retail sales, 15 per cent from exports, a similar quantum from government orders, 10 per cent each from OEMs and solar plants. The company had a revenue of Rs 1,550 crore last fiscal from which it earned over an industry-leading 8 per cent net margin.
They expect exports to jump to 20 per cent this fiscal as they are on the verge of entering the North American market following the introduction of DFT (direct forming technology) products.
They said the plants are running at around 60 per cent capacity utilisation, which is a tad more than the industry average and will continue to run at the same level or a little more, but will have higher volume as 2 lakh tonne more capacity will be on-stream soon, take the overall annual output at around 3 lakh tonne, from 2.4 lakh tonne last fiscal. On the revenue prospects, they said normally they have a three-month order book, but now it’s running it four months worth over Rs 350 crore which should help them grow the topline around 35 per cent more this year. They said as part of expansion, the company is enhancing the contribution of value-added products to over 50 per cent of total sales over the next two years.
The company serves industries across construction & building materials, core infrastructure, energy & engineering, heavy vehicles, agriculture, water & gas distribution, and solar projects.
