X

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.
Related Post