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BigBloc Construction Ltd reports Net Profit of Rs. 8.43 crore in Q1FY23, rise of 590% Y-o-Y



2022-08-14 11:31:53 Business

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Ahmedabad, July 27 2022: BigBloc Construction Limited, one of the leading player in the manufacturing of Aerated Autoclaved Concrete (AAC) blocks, Bricks and Panels reported a consolidated net profit of Rs. 8.43 crore (PAT Margin 15.18%) for the Q1FY22-23, growth of 590% as compared to the net profit of Rs. 1.22crore (PAT Margin 4.32%) in Q1 FY21-22. Total Income during Q1FY23 was reported at Rs. 55.60crore, rise of 94.61% YOY as compared to total income of Rs. 28.57crore in Q1FY22. EBITDA for Q1FY23 stood at Rs. 12.21 crore (EBITDA Margin 22%), rise of 268% as against EBITDA of Rs. 3.33 crore (EBITDA Margin 11.66%) in Q1FY22. EPS for Q1FY23 stood at Rs. 1.19 per share, rise 600% Y-o-Y.

Incorporated in 2015, BigBloc Construction Ltd is the only listed company in the AAC Block Space in India and the largest in the Western India. Green and non-toxic building construction material, AAC blocks are economical, light weight, thermal insulation, sound proof, fire resistance with superior build quality and saves energy, eco-friendly and economical too compared to the traditional bricks. It is the only company in this segment which generates carbon credits.

Commenting on the Performance, Mr. Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd said, \"We are pleased to announce that the company has achieved financial closure for the expansion at Wada, Palghar in Maharashtra. Despite a challenging economic and business environment due to COVID 19, company has delivered a robust financial performance quarter over quarter maintaining healthy growth in revenue, profitability and expects to continue the growth momentum in the coming years. Strategic growth initiatives, robust financial performance, new product launch along with operational efficiency are likely to contribute healthy growth and maximise value for all stakeholders in the near to medium term.\"

Company is setting up a green-field facility of 5 lakh cubic meter per annum for AAC Block at Wada, Palghar in Maharashtra. Total capex for the project is estimated to be around Rs. 65 crore and company will be eligible for 60% subsidy for the project from state government. The project is eligible for carbon credits. Company had purchased 38,000 sq. mtrs land for plant at Wada, Palghar District, Maharashtra.

\"Looking at the progress of the plant, we expect to start commercial production at the Wada unit by December 2022 as projected. Construction for the factory building is going as per schedule, company has placed orders for majority of the plant & machinery and shall start receiving machines at the site by Sep-Oct 2022. Company is one of the largest and only listed player in AAC block segment and intends to become largest in forthcoming future.\" said Mr. Saboo.

In addition, company has also entered in to a joint venture with SCG International Corporation Co. Ltd (SIAM Group) to setup 3 lakh cubic meter per annum facility near Ahmedabad to manufacture AAC blocks and AAC panels. SCG is one of the largest cement and building material company in South East Asia and will hold 48% in the joint venture with 52% being held by Bigbloc Construction Limited.

India is the second largest block manufacturer in the World after China. Indian AAC block Industry is almost entirely unorganised and has around 150-180 plant with large number of plants especially in Western India. Indian AAC blocks market is expected to grow to Rs. 11,000 crore by 2027 registering a CAGR of 14.3% during 2020-27.

Use of AAC blocks are expected to grow stupendously in the coming years owing to increased awareness, growth in the infrastructure sector and preferences for low-cost houses amongst the builders and architects and several beneficial attributes of AAC blocks over red clay and fly ash bricks.Government’s impetus through numerous infrastructure & housing projects and regulations to use eco-friendly construction material under its net-zero carbon emission mission, are the primary factors for the growth of AAC.

User :- Gopal Modi

Email :-gopal@coldcococonsultancy.com



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