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Earnings Call Transcript

Gravita India Earnings Call Transcript: Key Takeaways

Gravita reported strong 42% revenue growth despite lead volume dips caused by Red Sea logistics disruptions. Management is aggressively pivoting to copper and US-based scrap yards to mitigate geographic supply risks.

Highlights
Revenue growth42% YoY growth driven by higher capacity and copper integration.
MarginsEBITDA margins healthy at 9.8%; copper margins expected to scale.
Demand visibilityStrong global circular economy tailwinds supporting long-term volume targets.
Management confidenceConfident but cautious regarding Middle East logistics and scrap availability.

Growth

Revenue grew 42% YoY; PAT rose 14%. Growth is increasingly driven by copper and value-added product mix (63%).

Outlook

Targeting 8 lakh+ MTPA capacity by FY29 with 1,680 Cr total capex outlay.

Risks

Red Sea conflict causing lead scrap shortages; high working capital (95 days) due to copper inventory builds.

Last quarter's promises, checked

Delivered

  • Guided 4.57L MTPA capacity → delivered 4.57L MTPA (= BEAT)
  • Guided Phagi lead expansion Q1 FY27 → delivered Phagi expansion (= BEAT)
  • Guided Mundra lead expansion 145k MTPA → delivered 145,100 MTPA (= BEAT)

Partly delivered

  • Guided 1,700 Cr total Capex → delivered 1,680 Cr outlay (= PARTIAL)
  • Guided 90 days working capital → delivered 95 days (= PARTIAL)

Missed

  • Guided 5-year revenue CAGR 25% → delivered 42% revenue growth but volume only 4% (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: GRAVITA. Summary written with AI assistance from the document.

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Gravita India Ltd: key numbers

Share price
₹1,495.40
Market cap
₹11,037 Cr
Revenue (annual)
₹4,265 Cr
Net profit (annual)
₹378.8 Cr
P/E (TTM)
28.2×Sector 19.0×
Promoter holding
55.88%+0.00% QoQ
FII holding
12.86%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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