Pyramid Technoplast Limited (PYRAMID.NS) Earnings Call Transcript & Summary

[indiscernible] Pyramid Technoplast Limited Q1 FY '26 conference call. [Operator Instructions] We have on the call today Mr. Bijaykumar Agarwal, the Managing Director; and Mr Jaiprakash Agarwal, the Chief Financial Officer and Wholetime Director. So now I will try to hand over the call to Jai sir to proceed with the opening remarks post which we will open the floor of our Q&A. Thank you, and over to you, sir.

Yes. Hi, everyone. Am I audible to everyone? Okay. So a very good evening, everyone. It's a pleasure to be here today. Again, I'll walk you through our how Q1 FY '26 shaped up for us. This has been an important quarter for us and not just in numbers, but in the steady progress we have made towards building a scalable and future-ready business from establishing a strong base in Gujarat. We are now scaling up in Maharashtra bit capacity expansion across all run categories, marking the next chapter of our growth churn. One of our key milestones achieved including getting Guada plant into action. Yes. Now it is under production. While the production has just commenced starting June 30, we see strong operational momentum coming comer Q2 FY '25 onwards. We will share plan by updates in just [indiscernible] One of our biggest strength is backward integration. We manufacture most of our backward integrated products like cash closures, et cetera, in use. This helps us keep cost in check insurance quality control and speed up delivery. And to that, our growing plate number now at [ 88% ], we are able to maintain strong customer relationships with reliable all-time deliveries. We have come a long way in the past 2 years. Backing FY '24, our production capacity was about 51,000 metric tons per annum. Today, it is 34% higher at 6,800 metric ton per annum, reflecting our steady client towards growth. Our capacity utilization for this quarter came in at 73.4%, and we are determined to keep that momentum going. We are also picking up the goals we promised our solar and recycling plant is set to go live in September. Now let's touch on segment-wise performance. MS drum 19% year-on-year volume growth and 11% revenue growth with 90% of manual process already automated. This segment should see improved margins going forward. SDP drum terms grew 13% in volume and 7% in revenue. Year-on-year, drive up by ramp-up across lines. Our utilization improves further, we expect stronger results here. IBC was the star performer with 55% volume growth and 42% revenue growth year-on-year. Contribution from IBC overall revenue increased to 37% from 32% last year, even with higher competition. All strategic expansions, what we are going to do, let's touch on that. Units [indiscernible] capacity was expanded from 50,000 to 90,000 with production already underway. We are currently at 40,000 a month. and aiming for full capacity within 12 months. [indiscernible] Phase 1 has started with 1 IDC line, 2 SGP large blow molding and 30,000 MSR capacity. Trial runs are completed and commercial production has begun on 20th June for IBC and polymer plants. This will be in full swing in Q2 FY '25 onwards. Overall, the capacity for FY '26 will be averaging to 30% in Phase 1 and likely to be 60% to 70% in Phase 3. Lastly, for unit line, a new chapter. For the Baruch recycling plant. So we are coming up with our own recycling unit, which will help us not only produce SDP for us, that it will also help us sell the SDP in the market. So construction is already being completed. Machines are going to be installed by this month end, production will start by septin. The plant will recycle around 5,000 metric tons for plastic analyst, and this is just a beginning, reducing raw material costs and dependency on imports. This plant is a part of our sustainability brand and cost optimization plan. Our sustainability push also continues with 15-megawatt captive solar power project said to reduce our annual power cost by approx INR 10 crores a year. Commissioning will happen in phases with operations starting September onwards. Let's see some financial highlights. The revenue come in at INR 164 crores, around 4% down on quarter-on-quarter basis and 23% by year-round reflecting market dynamics but also setting up for a stronger at quarters ahead. EBITDA was around INR 14 crores, up 18% quarter-on-quarter and 13% year-on-year 8.6% margin. Net profit stood at INR 8. Margin this quarter was impacted by initial operating cost at [indiscernible] which is caliper, which will normalize as utilization runs up. our solar power plant expects to benefit us from September on, which will further lead to massive reduction in costs. On the positive side, gross margins improved, thanks to a better product mix and lower input costs. in short, with capacity expansions, sustainability projects and operational efficiencies coming together, we believe we are well positioned to deliver consistent growth improve profitability and create value for our stakeholders. Now we are excited about the role ahead. And now we are happy to take up your questions. Thank you so much. No, we are open with the question and answer.

[Operator Instructions] Okay. Our first question is from Saket Kapur.

[Foreign Language] And a good set of improved numbers this time. [Foreign Language]

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Next question, we have from Dipesh Sancheti.

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35%.

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INR 2.3 crores, okay. [Foreign Language].

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Our next question is from Sri Raman.

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Next up, we have a question from Mohit Jain.

[Foreign Language] Congratulations on your results. Sir, I want to ask, sir, can you elaborate on any government incentives or subsidies or tailwind that is supporting your investment in solar power and recycling.

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Okay. And sir, what about backward integration that you're doing backward integration?

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Okay. And sir, my next question is [Foreign Language]

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Next question, we have from Pratik Dedia.

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Got it. Or sir, demand scenario from end industry [Foreign Language]

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Next question, we have from Divakar Rana.