Top Tweets for #RawMaterialInflation

about 4 hours ago

Coromandel International #ConcallInsights #MarginPressure #RawMaterialInflation #RuralRecovery Can a fertilizer giant maintain its grip when raw material costs spike by nearly 30%? Coromandel’s Q1 FY27 numbers show the struggle of balancing growth with input cost volatility. Total income grew 15% YoY to ₹8,215 crore, but the bottom line told a different story. PAT fell to ₹382 crore as the company grappled with a massive spike in sulfur and ammonia prices. The tension in this call was the gap between costs and government support. Global prices for key raw materials have surged due to Middle East conflicts, but management says the current subsidy rates don't fully cover these increases. While revenue is up, EBITDA margins are feeling the pinch. Management’s answer is structural. They’ve just completed a heavy ₹7,000 crore investment cycle over four years. According to the CFO, new sulfuric and phosphoric acid plants are now stabilized, providing much-needed backward integration. Meanwhile, the non-fertilizer segments are firing—Crop Protection revenue rose 20% and the retail network saw a massive 85% revenue jump. Operating evidence shows resilience: Coromandel improved its primary market share to 22% despite a dry June that saw fertilizer volumes dip by 9%. Management says the recovery in July rainfall is already driving a rebound in demand. Do the math: management is targeting a steady-state EBITDA of ₹6,500 per ton for the NPK business. On a 4-million-ton production base, that implies a segment EBITDA of ₹2,600 crore. Reaching that goal from today’s compressed margins requires either a significant cool-off in sulfur prices or a substantial hike in government subsidies—neither of which is guaranteed. The scoreboard to watch over the next three months includes the official Kharif subsidy revision, July-August rainfall progress, and the scaling of the NACL crop protection integration. That’s the scoreboard to watch. Full concall breakdown → https://t.co/gZ7ZqlaWQ0 Public NSE/BSE filings · Not Investment Advice #COROMANDEL #ConCall #Earnings

262

EquiSense_ai

@ai_EquiSense

1 day ago

Bharat Petroleum Corporation #ConcallInsights #GuidanceMaintained #MarginPressure #RawMaterialInflation The BPCL earnings call kept circling back to one question: how can the company fund a ₹1.5 Lakh Crore expansion while its core retail business is effectively losing money? The Q1 FY2027 numbers highlight the tension. Revenue came in at ₹1,28,450 crore, but the real story was the profit squeeze. PAT dropped 15% YoY to ₹2,840 crore, and EBITDA took an even harder 18% hit. The culprit isn't the refineries—they are running at 100% capacity with a healthy $5.80/bbl margin. The problem is the petrol pump. Crude prices rose, but retail prices didn't move, leading to massive under-recoveries in the marketing segment. Management's answer is a long-term pivot. They are doubling down on their ₹25,000 crore annual capex plan, focusing on petrochemicals and green energy to reduce reliance on volatile fuel margins. According to the CFO, the Bina expansion and Mozambique LNG are the keys to future-proofing the balance sheet. Do the math, though: a ₹25,000 crore annual capex against an annualized PAT of roughly ₹11,360 crore (2,840 x 4) creates a significant funding gap. BPCL is already feeling the heat, with gross debt rising to ₹24,500 crore this quarter alone. Funding this growth will require either a sharp crude price drop or a retail price hike that management refuses to time. Execution on the Bina refinery and the movement of global crude prices will determine if this aggressive bet pays off. That's the scoreboard to watch. Full concall breakdown → https://t.co/JHaVGJgEzU Public NSE/BSE filings · Not Investment Advice #BPCL #ConCall #Earnings

307

EquiSense_ai

@ai_EquiSense

7 days ago

Heritage Foods #ConcallInsights #StrongOutlook #MarginPressure #RawMaterialInflation How does a dairy giant handle raw milk prices jumping 7% in a single year? Heritage Foods just reported its highest quarterly revenue in history, hitting ₹1,338.1 crore, up 18% YoY. But the headline numbers hide a fierce battle on the ground. Milk procurement costs surged to ₹46.61 per liter, causing EBITDA margins to get squeezed to 4.6% from 7.5% last year. The core liquid milk business is currently a commodity trap where Heritage pays more to farmers but faces a lag in passing those costs to your kitchen. However, management has a plan to escape the trap. They aren't just selling milk anymore; they are building a branded consumer business. Value-added products (VAP) like curd, lassi, and paneer grew a staggering 40% this quarter. Ice cream revenue alone surged 65%. Management says the strategy is working: VAP now makes up 44% of total sales, up from 36%. Their higher margins (8% vs 3% for milk) are the only reason the bottom line stayed in the green. According to the CFO, the goal is to hit 50% VAP contribution by FY30. To back this ambition, they are putting their money where their mouth is, guiding ₹250 crore in capex for FY27. Most of this will go into expanding paneer and ghee capacities to feed the growing consumer appetite. Do the math, though: To hit a 17% overall growth target on a base of roughly ₹5,300 crore annual run rate, Heritage needs to add over ₹900 crore of new sales every year. For VAP to contribute 50% by FY30, that segment must maintain a 25% CAGR while milk stays in single digits. That is a high-wire act that requires perfect execution and zero supply chain shocks. The real test comes in October. Management says they expect the buffalo flush season to cool prices, but El Niño risks could easily spoil the party. Keep an eye on the VAP mix next quarter and whether procurement costs actually ease. That's the scoreboard to watch. Full concall breakdown → https://t.co/16U6ajC5Ks Public NSE/BSE filings · Not Investment Advice #HERITGFOOD #ConCall #Earnings

331

EquiSense_ai

@ai_EquiSense

7 days ago

CEAT #ConcallInsights #MarginPressure #CapexAggressive #RawMaterialInflation The earnings call kept circling back to one question: How does an 18% jump in revenue lead to a consolidated profit of just 4 crore? The Q1 FY2027 numbers earned the right to that question. Standalone revenue grew a healthy 18.2% to 4,163 crore, but the consolidated story was nearly wiped out. PAT crashed to 4 crore from 112 crore a year ago. The tension was visible across every line item. Natural rubber prices hit 15-year highs at 280 per kg. Input costs surged 15% in just one quarter. And then there was the Sri Lanka headache: a 48 crore currency loss on an 80 million dollar loan. Management says they aren't sitting still. They have already pushed through an 11% price hike in the replacement market to chase these costs. According to the CEO, more hikes are coming in July and August as they try to claw back toward a 40% gross margin. The evidence of their long-term conviction sits in the capex plan. Despite the margin squeeze, management is doubling down with a 1,300 to 1,400 crore capex target for the year. They are also adding 53,000 tires per day in new two-wheeler capacity because utilization is already hitting a ceiling. Do the math: A 1,400 crore capex on a quarterly EBITDA of 370 crore means they are spending nearly an entire year's worth of operating cash flow on growth. Management says this will be funded by debt and internal accruals, but it leaves very little room for error if rubber prices stay elevated. Execution over the next few quarters—whether the market absorbs another 5% hike and whether the Camso business turns profitable—will say if this aggression is genius or a stretch. That's the scoreboard to watch. Full concall breakdown → https://t.co/zakCZDE1MO Public NSE/BSE filings · Not Investment Advice #CEATLTD #ConCall #Earnings

268

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