Transcript for H2 & FY25 Post Earning Conference Call held on 16th May, 2025
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Kaka Industries, a PVC/uPVC building products manufacturer, reported FY25 revenue growth of 16% to ₹198 crore (from ₹170 crore), driven by 17% volume growth, though net profit dipped 1% due to higher interest and depreciation from a ₹57 crore capex over FY24-FY25. EBITDA margin expanded by 71 basis points, with EBITDA per ton at around ₹14,500 and gross margin at ~35%. The new Lasundra plant was constrained for 9 months due to delayed HT power connection; with the line now operational, capacity utilization reached 60-65% from April 2025, and management targets 40% volume growth in FY26 followed by 30% YoY for the next 2-3 years. A 7.5 MW captive solar plant (₹25 crore investment, live by August 2025) is expected to save ₹40-50 lakh monthly in power costs, adding ₹4-5 crore annually to the bottom line. The company is launching SPC flooring for export markets (US and Europe) and plans to shift from a pull-based to push-based distribution model across Gujarat (62-63% of revenue), Rajasthan, Maharashtra, Telangana, and Karnataka.
The 40% volume growth target and capacity-led margin improvement story look credible given the supply-side bottleneck is resolved, though near-term PAT will remain pressured by elevated interest and depreciation. Solar savings and operating leverage from higher utilization are likely to be the key PAT drivers in FY26, while the SPC export foray opens a new margin lever.