AIA Engineering Limited — Q1 FY25
AIA Engineering reported Q1 FY25 revenue of INR 1,004 crore and EBITDA of INR 372 crore, with EBITDA margin of 37.1%.
bearish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
73%Questions answered2Evaded / deflected11Questions audited
Evasive
High priority
Are logistics delays risking the 30,000 ton incremental volume target?
Asked by Bhoomika Nair, DAM Capital
Management acknowledged the problem but refused to confirm or deny the volume target, deferring to next quarter.
deferred guidanceno commitmentvague timeline
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Question
Is that what is driving a little lower conversion... and thereby, what we were looking at, 30,000 incremental volumes on an annual basis could be at risk?
Sanjay Majmudar, Independent Director
Well, Bhoomika, you are in a way right, that yes, it is a serious concern... we want to wait and watch at least for one more quarter before we give you a clear volume guidance.
Evasive
Medium priority
Will you invest in warehousing to absorb logistics costs?
Asked by Bhoomika Nair, DAM Capital
Management declined to provide any specifics on potential investments, asking for more time.
no commitmentdeferred answer
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Question
Is there a possibility of us to kind of invest much more in terms of warehousing capacities or to absorb some bit of the logistics cost?
Sanjay Majmudar, Independent Director
Bhoomika, I'll be very honest, we are not going to hazard any guess. We are seriously evaluating various options, so please give us some more time.
Answered
Medium priority
How competitive is your rubber/composite mill lining on cost?
Asked by Bhoomika Nair, DAM Capital
Management directly stated that cost is not a factor due to unique benefits, avoiding price comparison.
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Question
How competitive will it be in terms of cost aspect, if you can elaborate a little more on that aspect?
Kunal Shah, Executive Director
So for all these solutions that we're introducing, actually, the whole cost and pricing becomes moot because the benefits we are offering... are in a very, very different realm.
Partial answer
Medium priority
Any update on US litigation and other ongoing litigations?
Asked by Bhoomika Nair, DAM Capital
Management gave no new details on US litigation but provided status on Brazil.
no specific update on USvague timeline
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Question
Any update on the various litigations which is ongoing, and particularly the latest one on the U.S.? Any update on that aspect?
Kunal Shah, Executive Director
Not really. It's a nine-month quarter... we are fully cooperating... Brazil is already terminated. Countervailing duty part... under sunset review, we hope to hear in next two months.
Answered
High priority
How are things 1.5 months into Q2? Has container situation improved?
Asked by Tarang Agrawal, Oldbridge Capital
Management gave a clear, honest assessment that conditions have not improved.
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Question
Now that, you know, almost 1.5 months into the second quarter, how are things currently?
Sanjay Majmudar, Independent Director
No perceived real improvement, I'll be very honest.
Answered
Medium priority
Is the delay impacting customer production?
Asked by Ashutosh Tiwari, Equirus
Management directly stated no serious impact on customer production.
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Question
This delay is, I hope it's not impacting the production at the customer level as of now.
Sanjay Majmudar, Independent Director
Not much, not really, because we do have... finished goods stock, it has moved up... orders, production, everything is there... I don't think any customer, we have any serious issue.
Answered
Low priority
Is the rubber/composite liner in-house developed or a tie-up?
Asked by Ashutosh Tiwari, Equirus
Management gave a clear, concise answer.
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Question
For this rubber and composite liners, this is in-house developed or we have some tie-ups?
Sanjay Majmudar, Independent Director
No, it's all in-house developed.
Answered
Medium priority
Did higher cement mix boost selling price realization?
Asked by Ashutosh Tiwari, Equirus
Management confirmed the mix benefit led to higher realization.
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Question
This quarter, the selling price realization that we got would have benefited from higher cement mix because that has castings as well as a higher priced. Is this correct?
Sanjay Majmudar, Independent Director
Overall on non, as we've seen the numbers, there's a, the product mix is better where there is higher... higher casting, with higher, higher priced product. You are right, that is reflected in the higher selling price.
Answered
Medium priority
Will the 20,000 ton mill liner capacity use existing castings?
Asked by Anupam Gupta, IIFL Securities
Management explained the brownfield nature and use of existing melt capacity.
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Question
When you say 20,000 tons of incremental capacity, will this use castings from your existing plant, or how will it work? Because INR 65 crore, it seems to be a bit small for this sort of a capacity.
Kunal Shah, Executive Director
No, it is an additional capacity. It is where we are adjusting melt... where melting capacity is available, some from an existing, where we are able to do balancing equipment for melting and the rubber part is being added additional.
Answered
Medium priority
Is Magotteaux taking advantage of the disruption?
Asked by Anupam Gupta, IIFL Securities
Management directly stated Magotteaux is capacity constrained and not gaining share.
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Question
Have you seen your Magotteaux taking advantage of this at all?
Kunal Shah, Executive Director
No, they are, as far as the chrome capacity is concerned, as we understand, they are capacity constrained. They are fully utilized for last few years.
Partial answer
High priority
What volume trajectory from Canada and Brazil after duties?
Asked by Priyankar Biswas, BNP Paribas
Management gave a volume expectation for Brazil but not for Canada, and no trajectory.
no specific volume trajectory for Canadavague on Brazil
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Question
What should be the volume trajectory from these geographies, let's say, keeping aside this Red Sea issue? So what sort of volume trajectory can we expect, and what is exactly the status of Canada right now?
Kunal Shah, Executive Director
Canada is finished... we are comfortable with that... Brazil... the dumping is already terminated... we see a bigger volume coming from the market. Going forward in next 12 months, it will be surely upwards of 20,000 tons.
Answered
Medium priority
What is the addressable market for rubber/composite mill liners?
Asked by Chirag Muchhala, Centrum Broking
Management provided a specific addressable market estimate of 100,000 tons for rubber/composite.
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Question
How large would the addressable end user market is? Suppose if they don't want to convert from rubber to metallic, et cetera, and only focus on rubber, then what is the addressable opportunity we are looking at?
Kunal Shah, Executive Director
It is a few times larger than our capacity... rubber itself or rubber composite could be upwards of 100,000 tons.