AIA Engineering Limited — Q4 FY24
AIA Engineering reported a flat Q4 FY24 with revenue of INR 1,130 crore and EBITDA margin of 32.57%, while full-year EBITDA hit a record INR 1,616 crore at 33.31% margin.
neutral
medium
✓ 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.
68%Questions answered3Evaded / deflected11Questions audited
Answered
Medium priority
Clarification on total stake in MPS acquisition after additional 13% purchase.
Asked by Amit Agicha, HG Hawa
Management clearly corrected the misunderstanding and stated the exact stake.
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Question
In the last con call, it was mentioned 30% stake is also acquired. Is it meaning that we are having 73% holding now?
Sanjay Shaileshbhai Majmudar, Non-Executive, Non-Independent Director
No, no, no, no. It is +13, total of 43% now.
Answered
High priority
Reason for putting brownfield expansion on hold and capacity impact.
Asked by CA Garvit Goyal, Nvest Analytics
Management provided specific capacity numbers and timeline for the modular approach.
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Question
Sir, you mentioned about putting off brownfield expansion on hold. So, can you let us know what is the capacity that we are currently putting on hold?
Sanjay Shaileshbhai Majmudar, Non-Executive, Non-Independent Director
So as against the first and foremost, 80,000 was the composite. Now we are implementing the first module through a modular approach of 36,000. So it is 440+ 20 brownfield already implemented at Odhav and a few other locations, as explained by Kunal, plus 36. So this will be 496,000, which should become operational by Q3 this year.
Evasive
High priority
Impact of rising gold and copper prices on mining activity and grinding media demand.
Asked by Ravi Swaminathan, Avendus Spark
Management avoided answering directly about demand pickup, instead reiterating their conversion strategy.
reframed to conversion focusno specific demand pickup confirmation
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Question
So with gold prices going up and copper also resurging back in terms of prices, how do you see the mining activity across your various geographies? Has there been any pickup that can lead to increase in grinding media demand?
Kunal Dilipbhai Shah, Executive Director
As we have always, always maintained, we want to remain very agnostic to mining demand cycle. ... The whole approach is conversion. ... the demand opportunity of 1.5 million-2 million ton conversion on which we are focused is absolutely intact.
Answered
High priority
Expected EBITDA margin range given cost savings initiatives.
Asked by Ravi Swaminathan, Avendus Spark
Management reaffirmed the 20%-22% guidance range, directly answering the question.
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Question
And with respect to the EBITDA margin, so, you-- earlier, you used to guide it to be in the range of 22%-23%, and then couple of quarters ago, you had mentioned 23%-24%. What kind of range that, it is likely to settle in, keeping in mind the cost savings, that initiatives that we are taking?
Kunal Dilipbhai Shah, Executive Director
Our macro guidance continues at 20%-22%. We've done better, you know, beyond that, as you know, for many quarters. But as a business model, we will defend that margin going forward.
Partial answer
High priority
Why conversion pace has been slow and whether 30,000 ton incremental volume is doable.
Asked by Bhoomika Nair, DAM Capital
Management explained past headwinds but gave a non-committal answer on the 30,000 ton target.
qualifiers like 'should be a fair goal'no firm commitment
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Question
So just trying to understand what has, what is driving this lower conversion. And as we move ahead, you know, at some point, I think we were looking at some 30,000 incremental volumes on an annual basis. You think that is something that is really doable?
Kunal Dilipbhai Shah, Executive Director
I think we lost almost three to four years, during which time that it was layered with this whole trade action, where we've lost volumes in Canada, Brazil, and South Africa, right? Collectively, closer to between 50,000 and 60,000 tons. ... adding 30,000 tons a year, I think should be a fair goal for what we try and offer, right?
Evasive
High priority
Risk of U.S. litigation impacting volumes in that geography.
Asked by Bhoomika Nair, DAM Capital
Management declined to provide any assessment of risk, citing legal advice.
refused to speculateno quantitative risk assessment
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Question
So the other thing is on this whole U.S. litigation, while obviously as such, volumes have not yet gotten impacted, and we continue to sell into that geography, what is the risk that this can get impacted?
Kunal Dilipbhai Shah, Executive Director
This is like doing a crystal ball, you know, gaze into the future, and, I think we've been advised not to, speculate on what, what it means. ... we are well-placed to defend it vigorously, basically.
Answered
Medium priority
Clarification on mill liner capacity and volume decline in 'others' segment.
Asked by Pritesh Chheda, Lucky Investment Managers
Management clarified the classification and acknowledged mill liner growth was below target.
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Question
Now, you have added 60,000 tons of mill liners, I think last year, and there was this whole idea of incremental addition of 10,000 tons per annum. But when I look at this year, your others, the volume has declined. So, you know, what is playing out there in terms of the declining volume, where mill liner itself incrementally was supposed to add 10,000 tons of volume?
Kunal Dilipbhai Shah, Executive Director
Others does not reflect, mill liners. Others reflects non-mining segment. So mill liners are part of the mining volume, that has been reported, you know, because it's going towards the mining segment. ... It has grown, but not at the 10,000 pace that we had hoped to.
Evasive
High priority
Whether U.S. anti-dumping experience will mirror past trade actions in Canada/Brazil.
Asked by Pritesh Chheda, Lucky Investment Managers
Management avoided a direct comparison, citing legal constraints and geographic differences.
cited legal restrictionsrefused to draw parallels
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Question
So, is it that in the incremental 27,000 tons of anti-dumping duty imposed by U.S., or let's say, not be imposed, reviewed by U.S., the experience has to be similar?
Sanjay Shaileshbhai Majmudar, Non-Executive, Non-Independent Director
Exactly. I'll tell you why. See, as Kunal explained, the matter is sub judice. We are completely restricted, but geographically, each geography's situation would not be the same, therefore, experience cannot be the same.
Answered
Medium priority
Any plans to set up manufacturing outside India given trade restrictions.
Asked by Charanjit Singh, DSP Mutual Fund
Management clearly stated no plans for overseas manufacturing at this time.
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Question
So my first question is regarding, you know, our stance on whether we'll be, you know, keen to now put up any capacities in the other locations apart from India, looking at the kind of, you know, duty structure restrictions.
Kunal Dilipbhai Shah, Executive Director
I don't think our view has changed. We continue to believe India is a great location. ... For now, there is no plans. I mean, we continue to stay put with our current structure and our current growth plan.
Answered
High priority
CapEx guidance for FY2025 and FY2026.
Asked by Anupam Gupta, IIFL
Management provided specific CapEx breakdown for FY2025 and indicated FY2026 is not yet decided.
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Question
Now that you have trimmed down the cap, the capacity addition part of it, what should be the CapEx one should build for FY 2025 and 2026, including what you are doing for power?
Kunal Dilipbhai Shah, Executive Director
So FY 2025, total CapEx is INR 200 crores, which is INR 90 crores for grinding media balance, you know, which we're commissioning now. INR 35 crores for power and INR 75 crores for that ongoing debottlenecking other things that we are doing.
Answered
Medium priority
Whether management has considered moving manufacturing to protect against protectionism.
Asked by Lokesh Manik, Vallum Capital
Management directly stated they do not see a need to move manufacturing and consider current structure robust.
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Question
In this slide, do you think you need to rethink your strategy of, you know, manufacturing out of India ... you may be shifting a portion of manufacturing, in countries that are, you know, more on the exhibiting this protectionism trend, you know, to safeguard your volumes?
Kunal Dilipbhai Shah, Executive Director
See, moving manufacturing there is first of all for us to say that India is not our current situation as an issue. We don't think our current situation as an issue. ... For now, our current structure is robust.