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Earnings Call Transcript

Midwest Earnings Call Transcript: Key Takeaways

Midwest Ltd reported strong growth in Granite but faced margin pressure from extreme diesel price volatility. Management is pivoting toward higher-margin Rare Earths and Quartz expansion to diversify revenue.

Guidance and delivery
Management target Revenue 30.2% FY27
Highlights
Revenue growth35% YoY growth reported for Q1 FY27.
MarginsEBITDA margins down 190 bps due to diesel cost spikes.
Demand visibilityStrong export demand from China; diversifying into Rare Earths.
Management confidenceConfident, focusing on operational electrification to counter fuel volatility.

Growth

Revenue grew 35% YoY driven by Granite; Quartz started with ₹5cr revenue targeting 15,000 tons/month throughput.

Outlook

FY27 revenue guidance is ₹840cr vs ₹645cr in FY26; Quartz phase 2 commissioning in 10-12 months.

Risks

Heavy dependence on diesel prices (13% of costs) and potential execution delays in international projects like Sri Lanka.

Last quarter's promises, checked

Delivered

  • Guided Quartz Phase 1 stabilization → delivered 15,000 tons/month ramp-up (= BEAT)
  • Guided 3-4% price hikes in Granite → delivered 3-5% hike (= BEAT)
  • Guided debt reduction → delivered ₹50cr reduction (= BEAT)

Partly delivered

  • Guided Quartz Phase 2 commissioning in 10-12 months → delivered project underway (= PARTIAL)
  • Guided Sri Lanka policy finalization by June → delivered policy finalized (= PARTIAL)

Missed

  • Guided stable margins → delivered 190 bps EBITDA margin contraction (= MISS)
Source

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

Read the document ↗

Midwest Ltd: key numbers

Share price
₹929.50
Market cap
₹3,361 Cr
Revenue (annual)
₹645.6 Cr
Net profit (annual)
₹104.8 Cr
P/E (TTM)
30.3×Sector 33.0×
Promoter holding
77.12%-0.01% QoQ
FII holding
3.88%Current quarter

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

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