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Jiya Eco Products – Q4FY19 conference call highlights

Last week Jiya Eco Products Ltd declared their Q4FY19 results. We attended their conference call to get better clarity into the numbers.

Hereunder are the notable highlights:

  • Full year volume numbers indicate continuing traction in sales of processed agri waste (now contributes +50% to overall volumes), but some slowing of growth (25% YoY growth in FY19) in pellet volumes and defocus on briquette sales (-23% YoY in FY19)
  • Export opportunities is being explored, samples sent to large multinationals in Asia and Japan gets approved by some of them at higher realisations and better credit terms as compared to their industrial and retail clientele. Pending some other formalities, this opportunity should get further clarity over the next 2 months
  • Revenue guidance for FY20 @50-60%, driven by higher utilisations of existing plant and commencement of Gandhidham facility
  • No stake sale by core promoters; sales effected by an ex-promoter (within his family group) apparently reflects in the declining promoter holding
  • Commencement of Gandhidham facility continues to witness delays, July 2nd week is when this should happen
  • Consequently, pace of retail burner addition is impacted. Only 375 burners installed at the end of FY19
  • Debtors, @171 days, continue to show stress although showing a decline from 198 days in the previous year. Management optimistically targets this at below 120 days by the end of next year

Read the attached note for further details:

CCA Blog – Q4FY19 Jiya Concall takeaways

 

Cheers!!!

Sudhir

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