“As we continue to manage the business dynamically to address the uncertainties, we continue to enhance our focus on understanding the changing needs and aspirations of our customers across our businesses. It is our endeavour to address these through innovative products and solutions – with a strong value proposition for our customers.”
– Rajesh Joshi, Managing Director & CEO
Stock Data
| Ticker | EVERESTIND |
| Exchange | NSE & BSE |
| Industry | Construction Materials |
Share Price
| Last 1 Month | 10% |
| Last 6 Months | -3.5% |
| Last 12 Months | 31.3% |
Business Basics
Everest Industries Limited, a pioneer in new-age building products, offers a comprehensive range of roofing, ceiling, wall, flooring and cladding products. Along with steel building products like pre-engineered steel structures, the product line also offers a variety of roofing, flooring, and ceiling options. 9,50,000 metric tonnes of building products and 72,000 metric tonnes of steel building products can each be produced annually by the company. A vast network, consisting of 33 Sales Depots, 7000 Dealer Outlets, and 100,000 Villages, is used to distribute these products. Moreover, the manufacturing facilities located in various parts of India, including Kymore in Madhya Pradesh, Nashik in Maharashtra, and Roorkee in Uttarakhand.
In recent years, Everest Industries has been at the forefront of innovation in the building materials industry. The company has introduced several new products and solutions that cater to the evolving needs of its customers. Due to its extensive manufacturing and distribution capabilities, Everest Industries is one of India’s leading suppliers of building solutions. The company also provide comprehensive technical support for each project in the form of designs, drawings, and implementation.
Everest Industries’ Business Segments
The company operates in two business segments: Building Products and Steel Buildings. The Building Products segment is engaged in the manufacture and sale of a wide range of building products such as roofing solutions, ceiling solutions, walls and flooring solutions, pre-engineered steel buildings, and various accessories. The roofing solutions offered by Everest Industries include asbestos and non-asbestos cement roofing sheets, metal roofing sheets, and shingles. The ceiling solutions offered by the company include false ceilings, metal false ceilings, gypsum boards, and modular ceilings. Everest Industries also offers wall and flooring solutions such as AAC (Autoclaved Aerated Concrete) blocks, Aerocon panels, and Hume pipes.
The Steel Buildings segment of Everest Industries provides pre-engineered steel buildings for industrial, commercial, and residential purposes. These buildings are designed and customized as per the requirements of the clients and are manufactured using the latest technology and quality materials.
Q3 FY23 Financial Performance
Everest Industries Limited improved its Consolidated Revenue from Operations by 16.3% year on year, to ₹392.35 crore from 337.26 crore. The primary factor in this growth was the segment for steel buildings. This segment increased to ₹150 crore from ₹94.63 crore, a growth of 58.5%, year over year. Whereas the Building Product segment remained unchanged to ₹242 Crore. Consolidated PAT is ₹4.97 Crore with Earnings per Share of ₹3.15 for this quarter.
Everest Industries’ Capex Investments
Everest Industries is establishing a new facility in Gudipalli, Andhra Pradesh, with a 125 crore capital investment for the Steel Building Segment through its wholly owned subsidiary. The CAPEX would increase the segment’s capacity from 72,000 MTPA to 114,000 MTPA. According to the management, it should be operational by March 2024. Additionally, the business has authorized capital expenditures of ₹187 Crores to build a new Boards and Panels plant through a fully owned subsidiary at KIADB Industrial Area in the Chamarajanagar District of Karnataka. Internal accruals and debt would be used in combination to pay for the CAPEX. This should increase the capacity of Boards and Panels from 210,000 MTPA to 301,000 MTPA. By June 2024, it is anticipated that the plant will be up and running. The expansion of company’s production capacity should help in improving the topline in near future.
Construction & Building Materials Industry Analysis
The construction and building materials industry is an important sector that contributes to the global development and growth of economies. It includes businesses that manufacture and supply building supplies used in construction projects, such as cement, concrete, steel, wood and glass. The pandemic’s impact on the building and building materials sectors peaked in 2020. The sector experienced a significant recovery in 2021–2022. India’s building materials market is currently estimated to be worth $225 billion.
India’s construction industry has grown significantly as newer economic sectors like hospitality, retail, entertainment, and education have emerged. Along with the growth of the construction sector, many new building materials have been introduced to the market. At the beginning of this fiscal year, inflation, which was primarily attributed to rising raw material prices, put pressure on the industry. The short-term growth outlook is dismal globally, and higher inflation is anticipated. However, India’s economy continues to grow at the fastest rates among all the major economies.