BigBloc Construction Ltd reports Net Profit of Rs. 8.43 crore in Q1FY23
Ahmedabad (Gujarat) [India], July 27: BigBloc Construction Limited, one of the leading players in the manufacturing of Aerated Autoclaved Concrete (AAC) blocks, Bricks and Panels, reported a consolidated net profit of Rs. 8.43 crore (PAT Margin 15.18%) for the Q1 FY22-23, growth of 590% as compared to the net profit of Rs. 1.22 crore (PAT Margin 4.32%) in Q1 FY21-22. Total Income during Q1FY23 was reported at Rs. 55.60 crores, a rise of 95% YOY compared to a total income of Rs. 28.57 crores in Q1FY22. EBITDA for Q1FY23 stood at Rs. 12.21 crore (EBITDA Margin 22%), a rise of 268% as against EBITDA of Rs. 3.33 crore (EBITDA Margin 11.66%) in Q1FY22. EPS for Q1FY23 stood at Rs. 1.19 per share, a rise of 600% Y-o-Y.
Incorporated in 2015, BigBloc Construction Ltd is the only listed company in the AAC Block Space in India and the largest in Western India. 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 which generates carbon credits.
Commenting on the Performance, Mr. Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd, said, “We are pleased to announce that the company has achieved financial closure for the expansion at Wada, Palghar in Maharashtra. Despite a challenging economic and business environment due to COVID 19, the company has delivered a robust financial performance quarter over quarter, maintaining healthy growth in revenue and profitability and expects to continue the growth momentum in the coming years. Strategic growth initiatives, robust financial performance, new product launches along with operational efficiency are likely to contribute to healthy growth and maximise value for all stakeholders in the near to medium term. ”
The company is setting up a green-field facility of 5 lakh cubic meters per annum for AAC Block at Wada, Palghar in Maharashtra. Total Capex for the project is estimated to be around Rs. 65 crores, and the company will be eligible for a 60% subsidy for the project from the state government. The project is eligible for carbon credits. The company had purchased 38,000 sq. mtrs of land for a plant at Wada, Palghar District, Maharashtra.
“Looking at the progress of the plant, we expect to start commercial production at the Wada unit by December 2022 as projected. Construction for the factory building is going as per schedule; the company has placed orders for most of the plant & machinery and shall start receiving machines at the site by Sep-Oct 2022. Company is one of the largest and only listed players in AAC block segment and intends to become largest in forthcoming future.” said Mr. Saboo.
In addition, the company has also entered into a joint venture 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 AAC panels. SCG is one of the largest cement and building material companies in South East Asia and will hold 48% in the joint venture, with 52% being held by Bigbloc Construction Limited.
India is the second largest block manufacturer in the World after China. The Indian AAC block Industry is almost entirely unorganised and has around 150-180 plants with a large number of plants, especially in Western India. The Indian AAC blocks market is expected to grow to Rs. 11,000 crores by 2027, registering a CAGR of 14.3% during 2020-27.
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 the builders and architects, and several beneficial attributes of AAC blocks over red clay and fly ash bricks. The 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.