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.