Most of my questions are already answered, sir. Only thing I wanted to understand is the tax rate for this quarter. So it is somewhere close to 37%. Is there any adjustment to it?
Questions across 7 calls
Aditya Rathi
Aequitas Investments
Sarda Energy & Minerals Limited
Thank you for the opportunity. Sir, like you mentioned in your opening remark that by the end of the year we will be able to reach our production requirement of steel billets and wire rods so do you still hold it true?
Like you mentioned in your opening remarks that by the end of the year we will be able to reach our production requirement of billets and wire rods but like we can see in the first half of the year, the production has not been really up to the mark so do we still stand to produce it by the end of the year?
Elecon Engineering Company Limited
Thank you for the opportunity, sir. Sir, my first question relates to the Red Sea crisis that is going on and the impact that it carries on the delayed shipment and cost?
Sir, does it carry any cost impact relating to it?
I wanted to s ir, just check on the overseas exports that we have and I see that there has been a sharp decline in that, in the current year, quarter 2, I see that only 20% of the total revenue comes from export and if we see historically it was close to 30% , so sir, when do we see the recovery of it and what is the main reason behind it?
Sir, next question comes from the cash generation point of view, I think we already have close to Rs. 350 crores odd cash and with the future prospect of company’s guidance, I see that there is going to be a pile of cash this year also, sir any mindset of utilization of this cash?
CEAT Limited
Firstly, my question is around the capex. So if you can give us a brief idea about the various commission timeline of the INR800 crores capex. And secondly, also, if you can explain the INR1,000 crores capex that has been announced for FY 25, various areas where we would be spending this money, that would be helpful.
Got it. So basically, the commissioning of all this project happens during the year only. We do not have any specific date when a majority of the capex will come on stream. Is that the right understanding?
Exide Industries Limited
Sir, my first question was related to industrial division, so recently, we have seen a lot of announcement as far as data center is concerned. So I wanted to understand what is the market opportunity for us and how do we see the growth panning out in this segment or how much of our revenue is contributed by this segment specifically? Subir Chakraborty: See, data centers are a growing segment in the country. It is something like, for example, if I were to take a parallel, like the drone segment, now, these are just started. This data center business was not there, let us say, 10 years ago, now gradually, this is picking up. So, once this starts picking up, this is nowhere near the kind of scale that we have in Singapore. US, California and so on and so forth. But it is going to grow because data center is a business which a lot of companies are embarking on this because of the sheer digital scale of our country and the growing prospects. So, this business is going to grow by leaps and bounds and we are well positioned. Aditya Rathi: Sir, I wanted to understand for us, let us say per megawatt of data center, what kind of opportunity is there, how the growth can come for us? Subir Chakraborty: So, as far as we are concerned, this presents a huge opportunity and we are catering to this. Now, as I have said this particular segment is at a very incipient stage. It is minuscule compared to what is there in some of the more developed countries. So, let this segment develop, then it will become clear to everybody. Aditya Rathi: And secondly, my question was again on the margin side, so we have definitely seen some improvement over the last 3 quarters in terms of EBITDA margin, but when we compare this with our historical averages, we are still almost 1.5%-2% away, so what could be the reason now and how do we see this going forward? Asish Kumar Mukherjee: We cannot give any future guidance on the margin, but we stated earlier also, we are having a lot of cost optimization initiatives, and this is showing results. That is what I said a while back that in spite of some commodity price increase, we could get a better Q2 margin compared to the previous quarter and so going forward, definitely we are likely to see some benefits on the cost and that should result better margin. There are lots of other volatility like commodity price and etc., those are also there. So, very difficult to predict any margin, but our cost initiatives are on. Aditya Rathi: Sir, for us, what is the target, let us say, of EBITDA margin going forward? I don't want any guidance, but what is the target that we are trying to achieve? Asish Kumar Mukherjee: Target is again, to go back to our earlier position, so 14.5% to 15%. Moderator: Thank you. Our next question is from the line of Kapil Singh from Nomura. Please go ahead.
JK Tyre & Industries Limited
Thank you for the opportunity and first of all congratulation on a very good set of number . Sir my first question was again related to margin so in the opening remark you mentioned that margin increase was because of product mix and raw material price going down so I wanted to understand how much of the contribution in margin has happened because of improvement in product
Got it and secondly again if I see at the gross margin level and if I compare it year-on-year so our RMC las t year for September quarter was close to 70% and it has dropped to now 60% so there has been an improvement of 10% in gross margin , but the similar level of improvement has not happened in EBITDA margin and if I can see the most glaring increase is in employee cost which has kind of sustained over the last six quarters so at what level do we see this employee cost stabilizing because in this current quarter also it has increased by 26% whereas our revenue has grown only by 3%?