Pyramid Technoplast (NSE:PYRAMID) Q1 2027 Earnings Call

0:15 We can't hear you, Somi. Can you hear me now? Yeah. No. We can't hear you. Sir, am I audible now? You are audible.

1:36 Go ahead. Start the recording first. Hello? Yeah., go ahead. Okay. So hi, everyone, and very good evening to all. I welcome you all to Pyramid Technoplast q one FY twenty seven con call. Please note that discussion on today's call may include certain forward looking statements and must be therefore viewed in conjunction with the risk pertaining to the business. We have on call today mister Vijay Kumar Vijay Kumar Agarwal, the managing director, and mister Jay Prakash Agarwal, CFO and hold time director. I now request the management to just proceed with the opening remarks. And post that, we'll open the floor for q and a. Thank you, and over to you, sir.

2:26 Thank you, Sonia. A very good evening, everyone, and welcome, everyone. And thanks for joining us for our q one two thousand twenty seven earning call. So we have started FY '27 with a strong and structurally healthier operating platform. So today, we have an installed capacity of twenty thousand nine thirty six metric tons per quarter, while volumes stood at twelve nine... 92 metric tons, translating into a capacity utilization of around 62%. While volumes in the quarter were really impacted, particularly by little slowdown in the exports of various products.

3:12 We believe this is a near term demand disruption rather than a structural issue. Importantly, unit economics have remained resilient and are actually improving. EBITDA per ton increased to approximately $163.80 in q one f y twenty six compared with $112.52 in q one f y twenty six and $1,505.03 in q one f y twenty six... Q four f y... Sorry. Q four twenty six. This clearly demonstrate that despite the temporary volume impact, our pricing, product mix, and operating efficiency are supporting profitability at the unit level. Now coming to the strategic developments.

3:57 So we are happy to announce that we are expanding in Kutch, Western India. It's progressing as planned. We are investing approximately 20 to 25 per hour in a new facility with a capacity of 10,000 IBCs units per month, which is expected to be commissioned by 03/22/2027. This facility will strengthen our presence in Kutch and Western India while providing logistical benefits through lower freight cost, faster deliveries, and customer service service satisfaction. We have also received government subsidy approvals for our newly installed Vada unit and Baruch facility amounting to approximately 24.9 crore for Vada and 10.5 for Unit 7 Baruch, which is spread over ten years.

4:50 These incentives will effectively reduce the cost of our investments and improve project economics, ROC, and payback over the long term. So our water facility is in full swing now across SDP, IBCs, and MS drums, and and is already operating above 70% utilization. We expect it to reach 80% during this month. The facility contributed approximately 43 crore or 19% of revenue from operations in this quarter, q one f y twenty seven. The focus now is to sustain this utilization, extract further operating leverage from the infrastructure already built. Our green energy initiatives are also beginning to contribute meaningfully because of two reasons. Not only due to due to the price advantage, but also we are getting it ESG benefits out of it so that we can reduce our carbon footprint and represent India at the global level.

5:55 The 6.6 megawatt solar plant was commissioned in October 2025, followed by an additional five megawatt in Bunge and 2.25 megawatt in Maharashtra. And one megawatt is still pending to be commissioned, which is going to be commissioned very soon, probably next quarter. We achieved approximately two per of savings in this quarter of q one f y twenty seven with a full 14.25 megawatt capacity expected to deliver around 15 per hour per hour savings. Similarly, our recycling plant commissioned in October an annual capacity of 5,000 metric tons and can address around 10 to 12% of our raw material requirements. So this is this is again a meaningful ESG benefit, and we are the only company in India that that is into solar and recycling board.

6:51 The plant processed around one fifty metric ton in q one FY twenty seven and generated around 25 lakh of EBITDA with FY twenty seven EBITDA contribution estimated at around 2 crores. Our financial front revenue grew by 36% year on year to $2.22 crores. Growth has driven primarily by price increase as sharp increases in raw material cost were passed through customers. STP polymer drum tonnage was about 4%... Was down 4% year on year, and IBC volumes were little hit as export demand suffered due to the war. This was partly offset by strong percent price.

7:36 Growth and continued --. Please mute. Gross profit rose 1919% year on basis, but gross margin compressed a little to 23% as raw material cost rose in step with price increases. Importantly, gross margin in rupees 10... Terms for STP remains stable. The past with the protected per unique profitability. EBITDA grew 50% year on year basis with margins at 10%, reflecting the operating leverage kicking in as the total expenses growth only modestly despite new plan commissioning. PAT grew by 32% year on basis to 10.5 curve with margins at 5% despite a soft rising financial cost by 179% and depreciation by 61% year on year basis tied to capacity expansion.

8:39 For financial year twenty seven, our objective remains to deliver approximately 15% revenue growth and EBITDA margins on upwards of 10%. We expect this to be supported by higher utilization, volume recovery, greater contribution from value added products, and solar savings and recycling benefits. We have also maintained a disciplined approach to capital allocation with FY twenty seven CapEx planned at approximately 20 to 25 per hour, primarily towards catch expansion and deployed in line with actual... To summarize, the last page was about building capacity. FY '27 and the years ahead are about filling that capacity and converting it into stronger earnings and returns.

9:28 With Vada ramping up, Kutch adding future capacity, unit economics, strengthening, and our solar and recycling initiatives begin to contribute. We believe Pyramid is well positioned for the next phase of sustainable growth and improve profitability. Very much. And thanks for continued trust and support. Now I would be happy to answer all the questions. Soumya, over to you. Hello? Somya, are you there? Hello? Soumya, are you there?

10:24 Sir, we can, Ramesh? Yes. Yes. Thank you for the opportunity, Hassan. Sir, the opening remark may outline 62% capacity utilization levels. Going ahead and factoring into the of the RM fluctuations, quarterly capacity end of the year, yeah, coming quarters improvement utilization levels Hello?

13:09 Correct. Sir, just say slide number seven profitability number shape of going the highest is So percent so that we can focus more on coming years.

14:30 Okay. Sir, correlation price policy customer Okay.

15:47 Efficiency percentage margin improvement recycling major role What is in... What in progress for there? And how will But we are processing material in this.

16:34 We'll enable to item. Okay. Business environment we are already business environment business sentiment Thank you. Thank you, sir. Next question, we have from. Please go ahead. Sir, or or IPO IPO first call or be it in terms of capacity expansion capacity expand In fact, solar or recycling And from a volume perspective, product mix control market control polymer resin prices.

18:03 Right? Fluctuate I think short run up to a large do quarter. Prediction projection But directionally next capacity or efficiency improvement raw material price fluctuation. Yes, sir. Sir, second or last question

19:43 b to b company maybe Thank you, sir, and all the best.

20:33 Thank you, sir. Next question we have from Kumar. Please go ahead. Congratulations on good set of numbers, margin guidance sales growth quarter given polymer prices prices are you confident at least is it because Okay, sir. But, sir, those are question last quarter almost eighty six year, FY '27 Okay, sir. Okay. Oh, sir. Last question that I

22:03 think up near welcome note. Maybe relation, but I have volume given chemical industry or market chemical sector but volume based revival who has sector realization or inventory Okay, sir. Okay, sir. Our last question, sir, this quarter, as you said, Middle East or exports are free in current 62% volume.

22:52 By year end, 80% to almost 18%. 75. Yes. For 70, 75%. Okay. Okay, sir. Thank you, sir. Vishu,. Thank Thank you, you, sir. Next question, we have from. Please go ahead. Hello, sir. Sir, question per month Got

24:46 it. Q four major capacity 21,000 production regular bookkeeping questions Got it. Got it. Got it, sir. Sir,

26:29 execution. Thank you so much. Thank you. Thank you, sir. Next up, we have Saket Kapoor. Please go ahead, Sir, yes, solar key is saving up up power cost remaining Okay, sir. Gross

28:21 profit margin price decline in normalize number match. Okay, sir. Existing industry Yeah. We are already serving from our existing facility. Customer growth because there is a we are estimating that volumes will increase. So better Okay.

29:57 Correct. Presentation continue press release Good. G code. Java exchange submit headline boldly point but Pyramid Techniques announces cuts expansion and government subsidy benefit. Those are bold on that. We will see order may just order market market numbers Yeah. But Thank you. Thank you.

31:03 Next question, we have from. Please go ahead. Sir, congratulations. You have posted good numbers. Okay.

32:32 Next question we have from. Please go ahead. My question is already answered. Thank you. Okay. Participants who wish to ask question, please raise your hand. Question 35 benefit benefit Right then, sir. Yeah.

33:33 What about? Yeah. So... Yeah. Spread over ten years. Just spread over ten years. Project. Last time last time project project problem. It's a very good thing. Expansion and you are doing it right. No. It's a very good decision, sir. It's absolutely a good decision.

34:45 Okay. Probably. We'll we'll we'll we'll wait for a minute for participants to ask the question. Those who wish to ask the question, please raise your hand. Yeah. Next, have from Ankit Panodia. Please go ahead. Sir, you... Debt situation significantly reduce FY '27 and FY '28. Total term loan plus working capital loan.

35:53 Working capital working capital Right? Okay. Right.

37:13 Right. Thank you. Thank you. Next question we have from Sarkit Kapoor. Please go ahead. Okay. Normal course team.

38:35 Sir, they say employees pay pages copy issues pay part of the consumer to employee capability. Yeah. We are on a smooth Right, sir. Right. But, I mean, Okay. And all the best,. Thank you. Sir, raw material cost pay or selling price One second. One second, sir. I'll just I'll just announce your name because this is recording, so we need to go with the format. Really sorry to interrupt you.

39:28 Next question we have from. Please go ahead now. Sir, with the raw material cost up up or your selling price, mathematics if you can explain. Because March March that would be at a very less price. We are sorry. An application error has occurred.

40:13 Goodbye. Okay. Thank you. Next question we have from Kumar. Sorry. Please go ahead. Growth next four, five years India maybe have a good market share. Market growth rate usually growth rate market share 15% plus Where do you see the growth opportunities of product wise and geography wise?

41:19 Okay. Okay. Okay, sir. FY twenty eight k one say at least operating profit benefit or plus subsidy Okay. Okay. Okay, sir. Thanks a lot, sir. Thank you. Thank you. Last question we have from the patient,. Please go ahead. Sorry, sir. Inventory level is going to maximum price fluctuations.

42:21 Quarter but major difference last quarter k update one k inventory gain will come due to the forty five days inventory. So forty five days inventory So inventory Okay. Okay. Or a question I think address facility you know, everybody...

43:16 All the investors get to know together. But facility customer supply Okay. Okay. So facility online which will be, I think, around March 2027. Customer Right? Sorry. Great.

44:33 Great. And is this... Is there a margin when I compare it to the last quarter? You don't hear me? Last quarter, sir. Question. When I see the margins... EBITDA margins EBITDA margins of the gross profit margin also. Market frankly disappointing So I just want to understand or margins related to that companies solar cost we were expect... The expectations results are very good, but expectations margins

46:06 Yes, sir. Yes, Absolutely. Selling 138 March close. Right. Got

47:47 it. Perfect. Perfect, sir. Are you 34 Yeah. Yeah. 32. So subsidies Right? Sorry? Can't say already. Yes, sir. This financial year onwards, we'll start getting. But we have the that is why we are not showing anything. But that's okay. Since it's going to come in this year, so we can take a year on year performance also. Great, sir. Thank you so much, and all the very best. Thank you, sir.

48:37 Thank you. I'll just hand over to Jessa for closing remarks. We are good with the questions now. So over to you, sir. Thanks for joining us. Want to say that, see, we have taken major initiative that is solar and recycling, which will add up to that complete benefit also. And, also, it will represent to reduce the carbon print footprint of our company as well as India. And we are mapping and we are following India's country's prime minister's directive that we want to reduce our carbon footprint. So we are on track with that, and we are we are one of the few companies in India who has been installed solar and recycling both together.

49:28 So thanks for supporting us. Keep supporting us, and keep motivating us like this. Thank you so much. Thanks, Somai. Thank you, sir. Thanks, everybody, for your time. Thank you. Okay, Vijay. Thank you. Okay. Namaste, sir. Thank you, sir. Okay. Thank you. Thank you, sir.