International Conveyors Ltd Q4 FY22 Earnings Conference Call Insights

Key highlights from International Conveyors Ltd (INTLCONV) Q4 FY22 Earnings Concall

 

Q&A Highlights:

Muzammil Usmani – Paramount – Analyst

• Replacement and the new demand from the revenue generated and outlook?

Prasad Deshpande – ED

• Each mines have their own blocks and they also explore new blocks.
  • As on date, it’s 50:50.
• Expects no change for the next 10-15 years.

 

Muzammil Usmani – Paramount – Analyst

• Timeframe for replacement?

Prasad Deshpande – ED

• It depends since it’s a marriage between the belt and the structure in the mines.
• The timeframe can be anything between 3-7 years.

 

Nitin Gandhi – KIFS Trade Capital – Analyst

• Reason for volatility in EBITDA margin.

Udit Sethia – Director

• Demand supply imbalance due to COVID for the last couple of quarters.
• The volatility is expected to continue for a while, though a bit of moderation is seen.
• In logistics, things are normalizing but still far from normal.

  

Nitin Gandhi – KIFS Trade Capital – Analyst

• Nature of huge loans extended in 2022.

Udit Sethia – Director

• These are loans given by INTLCONV under the respective approvals and are given under market ICD rate.
• It will give market rate return to the company.
• These are 100% ICDs.

  

Deepak Poddar – Sapphire Capital – Analyst

• Revenue growth outlook for FY23?

Prasad Deshpande – ED

• Can’t give a specific number guidance, but it should be quite good.

 

Saket Kapoor – Kapoor Company – Analyst

• Plant utilization levels for FY21 and FY22 and the outlook for FY23.

Prasad Deshpande – ED

• Plants are operating at close to 70% efficiency.
• Targeting to make it come to around 85% efficiency.

 

Saket Kapoor – Kapoor Company – Analyst

• Reason for raw material consumption to total sales going up; on a topline of INR205 crore, raw material consumption was INR127 crore?

Prasad Deshpande – ED

• Last year there was abnormal increase in raw material price, which is petroleum based for INTLCONV.
• Took some time for INTLCONV to pass on the increase to the customer.
• On a normal basis, it can be between 50-60%.

 

Saket Kapoor – Kapoor Company – Analyst

• Competitors for the company?

Prasad Deshpande – ED

• Major competition is with Fenner that is part of Michelin group.

 

Amit Shah – AT Capital – Analyst

• Freight cost for the company’s business?

Prasad Deshpande – ED

• Majority of the company’s business is done on a FOB basis where freight is borne by the customer.
• To certain extent, where business is doing on non-FOB basis, the cost was passed on to the customers.

 

Ricky Hinduja – Individual Investor – Analyst

• Capex plans for FY23?

Udit Sethia – Director

• Not foreseeing any capex plan.
• Want to consistently achieve capacity.

 

Anurag Patil – Roha Asset Managers – Analyst

• Percentage of revenue coming from long term contracts?

Prasad Deshpande – ED

• Can’t give figure on a percentage basis, but majority of the contracts are long term in the 5-7 year range.