BigBloc Construction Ltd reports Net Profit of Rs. 7.70 crore in Q3FY23, rise of 81.6 per cent Y-o-Y
Surat (Gujarat) [India], January 24 (ANI/PNN):
, one of the leading player in the manufacturing of Aerated Autoclaved Concrete (AAC) Blocks, Bricks and Panels has reported a consolidated net profit of Rs 7.70 crore (PAT margin 15.5 per cent) for Q3FY23, growth of 81.6 per cent Y-o-Y as compared to the net profit of Rs. 4.24 crore (PAT margin 8 per cent) in Q3FY22. Total income during Q3FY23 ended December 2022 was reported at Rs 49.55 crore. EBITDA for Q3FY23 stood at Rs. 13.31 crore (EBITDA Margin 26.9 per cent), rise of 79.3 per cent as against EBITDA of Rs. 7.42 crore (EBITDA Margin 14 per cent) in Q3FY22. EPS for Q3FY23 stood at Rs 1.09 per share, rise 81.2 per cent Y-o-Y.
Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed company in the AAC Block Space with a capacity of 5.75 lakh cubic meter (cbm) per annum. Green and non-toxic building construction material, AAC blocks are economical, lightweight, soundproof, fire resistance with superior build quality and saves energy, eco-friendly and economical too compared to the traditional bricks. It is the only company in this segment which generates carbon credits.
Company is also setting up two Greenfield projects with a combined capacity of 8 lakh cubic meter per annum - 5 lakh cubic meter per annum plant at Wada, Palghar (Maharashtra) and 3 lakh cubic meter per annum in joint venture with Thailand' SCG Group Kapadvanj Ahmedabad (Gujarat). Post completion of both expansion, the company's total capacities will increase to 13.75 lakh cbm per annum making the company one of the largest players in the country. The company also expects to generate around 2.5 to 3 lakh tons of carbon credit every year post the expansion.
Commenting on the Performance, Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd said, "Company is growing from strength to strength and has delivered a robust operational and financial performance during December quarter with healthy growth in revenue, profitability. The company is progressing well with its expansion plans at Wada, Maharashtra and joint venture with SCG Group and committed to complete all projects on time. JV with SCG Group aims to share techno-commercial knowledge, promote mutual growth & cooperation in the construction industry and bring new-age building materials to Indian markets. This expansion will help company to further penetrate its presence into untapped markets across the western regions and also make it the largest player in India. Strategic initiatives, operational efficiency with a vision for building a brand with innovative products are likely to contribute healthy growth and maximise value for all stakeholders in the near to medium term."
During the quarter, joint venture company - Siam Cement Big Bloc Construction Technologies Pvt. Ltd acquired 60,000 sq mtr land at Kapadvanj, Khdea district near Ahmedabad, Gujarat. Company is setting up a 3 lakhs cubic meter per annum plant for ALC Panels and AAC Blocks. SCG is one of the largest cement and building material companies in South East Asia and will hold 48 per cent in the joint venture with 52 per cent being held by Bigbloc Construction Limited. The plant is expected to start commercial production in Calendar Year 2023.
The company had achieved financial closure for Wada facility expansion in the month of July 2022. Total capex for the Wada project is estimated to be around Rs. 65 crore and the company is eligible for 60 per cent subsidy for the project. The company expects commercial operations from the Wada facility in the month of February 2023.
Highlights: - 9 Months FY23 Results
For the Nine months ended December 2022, the company reported a consolidated net profit of Rs. 24.67 crore (PAT margin 16.1 per cent), growth of 186.7 per cent Y-o-Y as compared to the net profit of Rs. 8.60 crore (PAT margin 7 per cent) during nine months of FY22. Total income during 9 Months of FY23 was reported at Rs. 153.70 crore, rise of 25.3 per cent Y-o-Y as compared to total income of Rs. 122.68 crore reported during nine months of FY22. EBITDA for 9MFY23 stood at Rs. 39.54 crore (EBITDA Margin 25.7 per cent), rise of 134.9 per cent as against EBITDA of Rs. 16.83 crore (EBITDA Margin 13.7 per cent) during nine months of FY22.
Use of AAC blocks in India is growing stupendously owing to increased awareness, growth in the infrastructure sector and preferences for low-cost houses amongst the builders and architects and several beneficial attributes over red clay and fly ash bricks. India is the second largest block manufacturer in the World after China. Indian AAC block Industry is almost entirely unorganised and has around 150-180 plant with a large number of plants in Western India. Indian AAC blocks market is expected to grow to Rs.11,000 crore by 2027 with a CAGR of 14.3 per cent during 2020-27.
BigBloc Construction Limited is India's leading AAC block and related products manufacturing company. AAC blocks are a superior quality building material which provides an unparalleled blend of strength, lightweight, thermal insulation, soundproof, unsurpassed fire resistance and highly proficient building capability. The company markets its products under brand name 'NXTBLOC'. Company's manufacturing plants are located in Gujarat at Umargam near Vapi and Kapadvanj near Ahmedabad and cater to Maharashtra, Gujarat, Madhya Pradesh and Rajasthan. Company client includes Lodha, Adani Realty, Piramal Realty, PSP Projects, L&T, Prestige Group among others.
Key Developments and Business Outlook:-
- Civil works at the Wada facility at Maharashtra is completed. Plant and machinery installation is going on. Plant is expected to start commercial production in the month of Feb 2023.
- Land acquisition for the joint venture plant with SIAM Group is completed under subsidiary "Siam Cement Big Bloc Construction Technologies Private Limited" at Kapadvanj, near Ahmedabad.
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