Conference Call with Shankara Building Products Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
We have reported a strong quarter with volume growth of 14% on a YoY basis. If you consider the months of January and February, volume growth stood at 23%.
Our revenues for Q4FY20 stands at Rs 667 crores, a growth of 12% as compared to same quarter, last year
Our PAT for the quarter grew by 4.25 times to Rs 11 crores
Revenues for FY20 grew by 4%, PAT growth for FY20 was 48% with absolute PAT of Rs 42 crores as compared to Rs 28 crores last year
Our PAT margin for the year stood at 1.6%, half a percentage higher as compared to last year
This performance has come in the challenging situation of Covid-19 in the later half of March 2020. Our performance has largely been on target, however, the lockdown impacted our cash flows which has led to a higher overall debt position
The lockdown instated by Covid-19 has impacted business activity all across the economy. In keeping with government announcements, part of prudent safety measures for our staff, all our business activities across warehouses, factories and offices were shut down since the later part of March 2020.
While some locations have recommenced activities from early May 2020, some parts of our network are still impacted because of the local lockdown measures
We have taken some measures as a part of this new business environment. Employee safety continues to be paramount, relevant social distancing and workplace guidelines have been communicated in all our workplace locations
The key aspect during this period becomes liquidity and we are conserving that as far as possible. We have ensured that we have adequate fund availability to maintain our business operations at the current level
We have continuous discussions with customers to ensure that business continues while reducing overall outstanding. We are also looking at serving customers from our existing stocks
We are engaging with our creditors and working with them to ease cash flows. Fresh Capex projects are currently on hold with only ongoing Capex being completed
The other key element that we are focusing on is cost control and we are relooking at our cost structures and rationalizing the same according to the current needs of the business
On the store count front, we currently have 115 stores and we have shut down 5 stores across locations
Digital channels and technology have also become imperative to deal with such situations. We have provided sufficient technology infrastructure to enable work from home for our staff
We have also provided online channels to reach out to customers for contactless sales
On the operational current status, we started our operations in the first week of 2020 in a staggered manner across our geographies based on states and local restrictions
Currently about 70% of our locations are operational. Activities are picking up based on local conditions
Karnataka is the largest state in terms of revenue and has been impacted lesser as of now by Covid-19 situation
A large part of our business comes from Tier 2 and key locations which has also helped us normalize operations faster
For locations which are not operational, we are engaging with our customers helping them with supplies wherever it is feasible
We see some demand for pending projects. There is no decline in demand for irrigation segment
Despite the loss of revenue for the last 10-15 days of March 2020, our consolidated revenue stood at Rs 667 crores as compared to Rs 598 crore in Q4FY19, an increase of 12%
EBITDA for Q4FY20 stood at Rs 27 crores as compared to Rs 15.5 crores in Q4FY19, a growth of 74% YoY basis
Revenues for full year FY20 stood at Rs 2,640 crores compared to Rs 2,546 crores last year, a growth of 4%
EBITDA for FY20 stood at Rs 117 crores as compared to Rs 99.5 crores in FY19, representing a growth of 18%
Retail segment now contributes to 55% of our overall revenues. Our retail EBITDA margin for FY20 stood at 8% with a retail EBITDA of Rs 115.6 crores
PAT for Q4FY20 stood at Rs 10.9 crores as compared to Rs 2.6 crores in Q4FY19, a growth of 4.25 times. PAT FY20 stood at Rs 42 crores compared to Rs 28 crores, a growth of 48%
Our net debt and acceptances for FY20 stood at Rs 340 crores. The last quarter is generally good for us from a revenue and PAT growth perspective. We continue to focus on our overall debt position and liquidity and with further aim to reduce it during the course of this year
Top 10 customers continue to contribute around 12% of enterprise segment’s revenue
Sales from our own products contributed to 25% of sales. We believe that the current environment continues to be uncertain while in May we have seen some traction in revenue, we need to assess the sustainability of this going forward
We will continue to be watchful and keep a strong focus on liquidity and cost control measures to align ourselves to the new business environment
Given the trend in May 2020, we are confident that we will manage this situation in the coming months
