This microcap stock rose 3% today and currently trades at Rs. 84.23 with a market cap of Rs. 567 crore. The stock is trading 11% away from its 52 week high. The stock has been on an uptrend since early April 2023 and now stands 13% higher than its 200 day moving average.
International Conveyors Ltd (“International Conveyors”) filed its investor presentation on Tuesday in which the company has outlined Key Performance Metrics (“KPIs’) and the progress it has made in various areas of the business. Its key customers include the likes of Tata Steel & Coal India domestically and international ones include Beltservice Corp, Peabody Energy, Ensham Resources and much more.
The company’s business consists of three segments: Conveyor Belting segment, which includes manufacturing and sale of PVC Conveyor Belting; Wind Energy Segment, which includes generation, supply and sale of Wind Power (Electricity), and Unallocated / Corporate Segment, which includes Corporate, Administrative and Financing activity. Long term contracts of 5-7 years for the company reduces operating leverage in the medium term.
In the presentation the company reported 50% YoY growth in EBITDA in FY23 and 78% YoY Net Profits Growth. EBITDA Margins have expanded 420 bps while Net Profit Margins have increased 550 BPS. Besides, the domestic revenue has grown 228% YoY in Q1 itself.
Coming to exports, the company reported increased diversification in geographic presence. Its key customers internationally are from US and Canada whose proportions were 29% and 63% in FY and now stand at 32% and 47% respectively in FY23.
Additionally, International Conveyors has reduced its borrowings and other liabilities significantly (up to 90% reduction in liabilities), which is expected to be paid off within the year/ operating cycle. Another key metric that was reported to have shown improvement is receivable days and inventory days that have reduced 35% and 2% respectively.
Written by Sandeep R
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