Batliboi Ltd has announced its financial results for the quarter ended September 30, reporting a slight decrease in net profit amid revenue growth.

Financial Highlights

The company's results for Q2 show:

All figures in lakhs of Indian Rupees

Revenue Growth and Profitability

Batliboi has demonstrated strong top-line growth, with revenue from operations increasing to Rs 8,264.10 lakhs in Q2, up from Rs 6,945.59 lakhs in the same period last year, marking a 19.0% year-over-year increase. This growth indicates robust demand for the company's industrial equipment and services.

However, the company's net profit saw a slight decrease to Rs 362.87 lakhs, down from Rs 366.24 lakhs in Q2 of the previous year, reflecting a 0.9% decline. Despite the revenue increase, this marginal drop in profit suggests some pressure on profitability, possibly due to increased costs or competitive pricing.

Management Changes

The company announced significant changes in its management:

• CFO Resignation: Ghanshyam Chechani, the company's Chief Financial Officer, has resigned with immediate effect due to pre-occupation in other company activities.
• New CFO Appointment: Kapil Arora, a chartered accountant with over 23 years of experience, has been appointed as the new CFO effective November 7.

Employee Stock Option Scheme

The board has approved the grant of 3,05,000 stock options under the Employee Stock Option Scheme at an exercise price of Rs 111 per share. This move may be aimed at aligning employee interests with company performance and retention of key talent.

Business Operations

Batliboi operates in the industrial equipment segment and has three subsidiaries, including a newly incorporated entity, Bioconserve Renewables Envirotech Private Limited. This expansion into renewables suggests the company is diversifying its portfolio and potentially exploring growth opportunities in the environmental technology sector.

Conclusion

Batliboi's Q2 results demonstrate the company's ability to drive revenue growth. However, the slight decrease in net profit despite significant revenue growth may warrant attention to cost management and operational efficiency.

With recent management changes, the introduction of stock options, and expansion into new sectors through subsidiaries, Batliboi appears to be positioning itself for future growth and adaptation to market demands. Investors and market watchers will likely keep a close eye on how these strategic moves impact the company's financial performance in the coming quarters.

Batliboi Limited , a diversified engineering solutions provider, reported a challenging first quarter but remains optimistic about its growth prospects for the full year. The company's performance was impacted by one-time expenses and post-merger compliance costs, resulting in a loss of INR 2.72 crore for Q1.

Financial Performance

For the quarter ended June 30, Batliboi Limited reported:

The company attributed the loss to one-time extraordinary expenses in the Machine Tool Manufacturing division and post-merger compliance costs following the merger with Batliboi Environmental Engineering Limited.

Strong Order Book and Future Outlook

Despite the challenging quarter, Batliboi Limited showcased a robust order inflow of INR 270.00 crore, with an outstanding order book of INR 465.00 crore as of June. The management expressed confidence in the company's growth trajectory, projecting:

• Q2 order inflow: INR 350.00+ crore
• Full-year order inflow target: INR 1,000.00+ crore
• Full-year revenue growth target: 10-12%

Segment Performance and Strategic Initiatives

Machine Tool Division

• Completed INR 25.00 crore capex for foundry and machine shop upgradation
• Aims to double CNC machine production from 30 to 60-70 machines monthly
• Targeting various sectors including agriculture, automotive, defense, and general light engineering

Textile Engineering Division

• Recorded an order inflow of INR 167.00 crore in Q1
• Anticipates further order inflow of INR 200.00 crore in Q2

Environmental Engineering Group

• Q1 revenue: INR 19.00 crore
• Q1 order inflow: INR 34.00 crore
• Q2 projections: INR 50.00 crore order inflow and INR 40.00 crore revenue

Expansion and Sustainability Initiatives

Batliboi Limited is focusing on several key initiatives to drive growth and efficiency:

1. Solar Power Installation: Plans to install a solar system at its Surat manufacturing facilities, which, combined with existing windmill capacity, is expected to achieve power self-sufficiency by year-end.

2. Land Monetization: The company has earmarked 4 acres of land for sale, expected to fetch approximately INR 40.00 crore, which will be used to repay non-interest-bearing promoter loans.

3. Future Development: An additional 8 acres have been allocated for potential development in IT or BPO sectors to create a permanent source of income.

4. Green Hydrogen Solutions: Targeting small-scale hydrogen projects, focusing on supplying electrolyzers and balance of plant equipment.

Management Commentary

Nirmal Bhogilal, Chairman of Batliboi Limited, stated, "Despite the subdued first quarter, we are confident of improving our performance in the upcoming quarters, targeting a top-line growth of 10% to 12% and a better bottom line compared to the previous year."

Sanjiv Joshi, Managing Director, added, "The capex expansion in our Machine Tool division is set to address both quality and production capacity. We are looking at doubling our numbers in the next one to two years."

As Batliboi Limited navigates through its post-merger phase and capitalizes on its expansion initiatives, the company remains focused on leveraging its diversified portfolio to drive sustainable growth across its key business segments.