BigBloc Construction Ltd reports Net Profit of Rs. 8.61 crore in Q2FY23, rise of 174% Y-o-Y 1
BigBloc Construction Ltd reports Net Profit of Rs. 8.61 crore in Q2FY23, rise of 174% Y-o-Y 2

Mr. Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd

Commercial operations of Wada facility at Palghar (Maharashtra) with 5 lakh cubic meter per annum to commence in the current financial year of FY23

Consolidated Financial Highlights:                                                            (Rs. in cr)

Particulars
 
Q2

FY23

Q2

FY22

% Change H1

FY23

H1

FY22

% Change
Total Income 48.55 41.23 17.7% 104.15 69.80 49.2%
EBITDA 13.96 6.08 129.7% 26.23 9.41 178.8%
EBITDA Margin (%) 28.75 14.74 1401 bps 25.19 13.48 1171 bps
PAT 8.61 3.14 174.2% 16.97 4.36 288.8%
PAT Margin (%) 17.74 7.62 1012 bps 16.29 6.25 1004 bps
EPS (in Rs.) 1.20 0.44 169.7% 2.39 0.62 287.2%

 Surat, November 2022: BigBloc Construction Limited, one of the leading player in the manufacturing of Aerated Autoclaved Concrete (AAC) Blocks, Bricks and Panels has reported consolidated net profit of Rs. 8.61 crore (PAT margin 17.7%) for Q2FY23, growth of 174% Y-o-Y as compared to the net profit of Rs. 3.14 crore (PAT margin 7.6%) in Q2FY22. Total income during Q2FY23 ended September 2022 was reported at Rs. 48.55 crore, rise of 17.7% Y-o-Y as compared to total income of Rs. 41.23 crore in Q2FY22. EBITDA for Q2FY23 stood at Rs. 13.96 crore (EBITDA Margin 28.8%), rise of 129.7% as against EBITDA of Rs. 6.08 crore (EBITDA Margin 14.7%) in Q2FY22.  EPS for Q2FY23 stood at Rs. 1.20 per share, rise 170% Y-o-Y.

Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed company in the AAC Block Space with a capacity of 5.75 lakh cubic meter per annum. 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, “Company has delivered a robust operational and financial performance for the September quarter maintaining healthy growth in revenue, profitability and expects to continue the growth momentum in the coming years. During the year, company laid down plans for installation of Greenfield projects at Wada (Maharashtra) and Ahmedabad (Gujarat). The facilities will have a combined capacity of 8 lakh cubic meter per annum Expansion at Wada, Maharashtra with 5 lakh cubic meter per annum is going as scheduled and we expect to commercial production in the current financial year of FY23.”

Total capex for the project at Wada is estimated to be around Rs. 65 crore and company is eligible for 60% subsidy for the project. Company had achieved financial closure for the expansion in the month of July 2022. Post completion of both expansion, company’s total capacities will increase to 13.75 lakh cbm per annum making the company one of the largest players in the country. Company expects to generate around 2.5 lakh tons of carbon credit every year post the expansion.

Highlights: – H1FY23 Results 

For the six months ended September 2022, company reported consolidated net profit of Rs. 16.97 crore (PAT margin 16.3%) in H1FY23, growth of 289% Y-o-Y as compared to the net profit of Rs. 4.36 crore (PAT margin 6.3%) in H1FY22. Total income during H1FY23 2022 was reported at Rs. 104.15 crore, rise of 49.2% Y-o-Y as compared to total income of Rs. 69.8 crore in H1FY22. EBITDA for H1FY23 stood at Rs. 26.23 crore (EBITDA Margin 25.2%), rise of 179% as against EBITDA of Rs. 9.41 crore (EBITDA Margin 13.5%) in H1FY22.

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.

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 panels with an investment of around Rs. 60 crore. The project is expected to commence from Q1FY24. 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.

“Post completion of all expansion, company’s total capacity will increase to 13.75 lakh cubic meter in next few year. This will help company to further penetrate its presence into untapped markets across the western regions and also make it the largest player in India. 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,” said Mr. Mohit Saboo, Director & CFO, BigBloc Construction Ltd.

Bigbloc Construction Ltd manufactures AAC blocks, a high-quality building material with a unique combination of strength, low weight, thermal insulation, sound absorption, unrivalled fire resistance, and unmatched build ability. Company markets its products under Brand name ‘NXTBLOC‘. Company’s manufacturing plants are located in Umargaon and Kapadvanj to cater to Maharashtra, Gujarat, Madhya Pradesh and Rajasthan. Company client includes Lodha, Adani Realty, India Bulls Real Estate, Raheja, PSP Projects, Larsen & Toubro, Mahindra Lifespaces, Kanakia Group, Sunteck among others.

Key Developments During the Quarter :-

  • Monsoon and torrential rains impacted demand during the quarter resulting in opportunity loss of 8-10% in revenues.
  • Margins and profitability got a boost from recent correction in majority raw materials prices due to current global slowdown.
  • During the quarter under review, the company sold approx. 43,000 carbon credits.
  • Work at Wada unit in Maharashtra is running at full swing. Majority of machines are already dispatched. Company intends to start commercial productions very soon.
  • Land acquisition for the joint venture plant at Ahmedabad with SIAM Group is in final stages
  • Company has further strengthened its debt equity ratio to 0.74 as on 30 Sep 22 from 0.91 as on 31 March 2022

Incorporate in 2015, BigBloc Construction Limited is engaged in the business of manufacturing of building Aerated Autoclave Concrete (AAC) blocks, Bricks and Panels. AAC is a green and non-toxic construction material, saves energy, and is friendly to your environment. Company markets its products under Brand name ‘NXTBLOC’.

BigBloc is the second largest manufacturer of AAC Blocks in India and largest in Western India. It is the only company in this segment which generates carbon credit. AAC blocks are a high quality building material that offers a unique combination of strength, low weight, thermal insulation, sound absorption, unsurpassed fire resistance and unprecedented build ability.

Company’s manufacturing plants are located in Umargaon and Kapadvanj in Gujarat and  cater to Maharashtra, Gujarat, Madhya Pradesh and Rajasthan with combined capacity of 5.75 lakh cubic meter per annum. Company client includes Lodha, Adani Realty, India Bulls Real Estate, Raheja, PSP Projects, Larsen & Toubro, Mahindra Lifespaces, Kanakia Group, Sunteck among others.

Company is setting up two Greenfield projects at Ahmedabad (Gujarat) and Wada, Palghar (Maharasthra) with a combined capacity of 8 lakh cbm per annum. The project will quality for 60% subsidy from the state government. Post completion of the expansion, company’s total capacity will increase to 13.75 lakh cubic meter which will make it the largest player in India. Company expects to generate around 2.5 lakh tons of carbon credit every year post the expansion.

Company has 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 panels with an investment of around Rs. 60 crore. The project is expected to commence from Q1FY24. 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.

For FY22, Company reported Net Profit of Rs. 16 crore with EBITDA of Rs. 27.7 crore, Total Income of Rs. 175.8 crore. Last 3 year Net Profit CAGR at 138% and Sales CAGR at 21%. Promoter Group holding in the company as on March 22 stands at 72%. Listed on BSE and NSE, company’s market capitalisation stands at over Rs. 950 crore.

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