BigBloc Construction Limited, manufacturer of aerated autoclaved Concrete (AAC) Blocks, bricks, and panels have reported a consolidated net profit of Rs. 8.61 crores (PAT margin 17.7%) for Q2FY23, a 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 crores, a rise of 17.7% Y-o-Y as compared to the total income of Rs. 41.23 crores in Q2FY22. EBITDA for Q2FY23 stood at Rs. 13.96 crores (EBITDA Margin 28.8%), a 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, the rise of 170% Y-o-Y.
Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed companies in the AAC Block Space with a capacity of 5.75 lakh cubic meters per annum. Green and non-toxic building construction material, AAC blocks are economical, lightweight, thermal insulation, soundproof, fire resistant with the superior build quality and saves energy, eco-friendly and economical too compared to the traditional bricks. It is the only company in this segment that generates carbon credits.
Commenting on the Performance, Narayan Saboo, Chairman & Managing Director, of Bigbloc Construction Ltd said, "Company has delivered a robust operational and financial performance for the September quarter maintaining healthy growth in revenue, and profitability and expects to continue the growth momentum in the coming years. During the year, the company laid down plans for the installation of Greenfield projects at Wada (Maharashtra) and Ahmedabad (Gujarat). The facilities will have a combined capacity of 8 lakh cubic meters per annum Expansion at Wada, Maharashtra with 5 lakh cubic meters per annum is going as scheduled and we expect commercial production in the current financial year of FY23.”
The total capex for the project at Wada is estimated to be around Rs. 65 crore and the company is eligible for a 60% subsidy for the project. The company achieved financial closure for the expansion in the month of July 2022. Post completion of both expansions, the company’s total capacities will increase to 13.75 lakh cbm per annum making the company one of the largest players in the country. The company expects to generate around 2.5 lakh tons of carbon credit every year post the expansion.
For the six months ended September 2022, the company reported a consolidated net profit of Rs. 16.97 crores (PAT margin 16.3%) in H1FY23, a 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 crores, rise of 49.2% Y-o-Y as compared to the total income of Rs. 69.8 crores in H1FY22. EBITDA for H1FY23 stood at Rs. 26.23 crores (EBITDA Margin 25.2%), a rise of 179% as against EBITDA of Rs. 9.41 crore (EBITDA Margin 13.5%) in H1FY22.
The company has also entered into a JV with SCG International Corporation Co. Ltd (SIAM Group) to set up a 3 lakh cubic meter per annum facility near Ahmedabad to manufacture AAC blocks and panels with an investment of around Rs. 60 crores. The project is expected to commence in Q1FY24. SCG is one of the largest cement and building material companies in South East Asia and will hold 48% of the joint venture with 52% being held by Bigbloc Construction Limited.
"Post completion of all expansion, the company's total capacity will increase to 13.75 lakh cubic meter in the next few years. This will help the company to further penetrate its presence into untapped markets across the western regions and also make it the largest player in India. The use of AAC blocks is expected to grow stupendously in the coming years owing to increased awareness, growth in the infrastructure sector, preferences for low-cost houses amongst 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 Mohit Saboo, Director & CFO, BigBloc Construction Ltd.