Rhetan TMT के अगले 5 साल के ग्रोथ प्लान और कारोबार विस्तार पर MD Shalin Shah का Outlook

Summary

In this segment, Mr. Shaleen Shah, MD of Ton TMT Company, discusses the company's growth and business in manufacturing TMT bars and round bars. The company is based in Gujarat and has an annual turnover of around 125 crores with an IPO in August '22. They plan to set up a captive power plant near Ahmedabad to meet the energy needs of their factory. The discussion covers the company's revenue, profit margins, and future expansion plans, including increasing production capacity and the impact of government infrastructure focus on the TMT industry.

Takeaways

• 😀 The company, Ton TMT Company, specializes in manufacturing TMT bars and round bars for the construction industry.
• 📈 The company's annual turnover is expected to cross INR 125 crores, with a significant growth trajectory.
• 🏭 The company has an IPO in August 2022 and has recently set up a captive power plant to meet the energy requirements of their factory.
• 🌱 The power plant is expected to provide a substantial cost benefit, as the electricity expense will be reimbursed through the solar power plant.
• 🔍 The company's manufacturing capacity is currently 45,000 tons per annum and plans to scale up to 60,000 tons by the financial year 2025-2026.
• 💹 The company anticipates a minimum profit of INR 10 crores post-installation of the power plant, indicating a positive outlook for profitability.
• 🌐 Despite minor weaknesses in exports, the company's expectations for the steel industry and TMT sector remain optimistic, especially with government focus on infrastructure.
• 🛠️ The company sees no possibility of a downturn in the TMT industry due to continuous infrastructure development and government initiatives.
• 🌟 The company's expansion plans include increasing production capacity and is already underway with groundwork for implementation expected between March 2025 and March 2026.
• ♻️ The company's growth is intrinsically linked to the health of the steel industry, with a strong emphasis on infrastructure development driving demand for TMT bars.

Q & A

What is the primary business of the company mentioned in the script?

The company primarily manufactures TMT bars and round bars in the steel industry.

What is the current manufacturing capacity of the company in terms of tons per annum?

The company's current manufacturing capacity is 45,000 tons per annum.

What is the expected turnover for the company in the next financial year?

The company expects to cross a turnover of 125 crores in the next financial year.

What is the company's plan regarding the installation of a power plant?

The company is setting up a captive power plant with a capacity that will be used for the total power consumption at their factory.

Where is the company planning to set up the power plant?

The power plant is planned to be set up near Ahmadabad, approximately 60 kilometers away, which will be fully utilized for the power requirements at their factory.

What is the company's expected profit after the installation of the power plant?

The company expects a minimum of 10 crores in profit after the installation of the power plant.

How does the company view the current health of the steel industry, especially in exports?

The script suggests that there might be a slight weakness in exports, but the company does not foresee any significant difficulties for the TMT industry in the next 3-5 years.

What is the company's expansion plan for the manufacturing capacity?

The company plans to scale up its production from the current 45,000 tons per annum to 60,000 tons per annum by the financial year 2025-2026.

What are the company's expectations from the solar power plant mentioned in the script?

The company expects that the expenses related to electricity will be offset by the solar power plant, as it will provide a full reimbursement of their power bill.

What is the company's view on the impact of government focus on infrastructure on the TMT industry?

The company believes that as long as the government continues to focus on infrastructure development, the TMT industry, being a core industry, will not face any downturn.

What are the challenges the company faces in the TMT industry?

The script implies that the company does not see any significant challenges or downturns in the TMT industry due to the government's focus on infrastructure development.