Monolithisch India Ltd (MONOLITH) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Monolithisch India Limited Q2 and H1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Hiral Keniya from EY. Thank you, and over to you, Hiral.
Hiral Keniya (EY): Thank you, Danish. Good afternoon, everyone. On behalf of Monolithisch India Limited, I welcome you all to the company's Q2 and H1 FY27 earnings conference call. To discuss the performance of the company, we have with us from the management team, Mr. Prabhat Tekriwal, Chairman, Mr. Harsh Tekriwal, Management Managing Director, Mr. Kshitij Tekriwal, Director, Investor Relations, and Mr.
Hiral Keniya (EY): Bohra, Company Secretary and Compliance Officer. Before we proceed with this call, I would like to draw your attention to the fact that today's discussion may contain some forward-looking statements that are subject to various risks, uncertainties and other factors with which would be beyond management control. We kindly request to bear in mind that there might be some uncertainity while interpretating such statements. We will now start the session with opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session. I will now hand over the conference call to Harsh Sir for his opening remarks. Thank you and over to you, Sir.
Harsh Tekriwal (Monolithisch India Ltd): Thank you, Hiral. Good afternoon, everyone. Our ambition is to build Monolithisch into advanced handling and silica silica manufacturing business with a growing presence pan-India. We are working towards this ambition by strengthening our raw material foundation and extending manufacturers processing closer to customers. Our main target is to invest where it is required. We are investing in research and development capabilities and building a new Monolithisch. Firstly, I'd like to talk about the backward integration. The mining block allotted to the company in Bihar is very critical. As our manufacturing footprint expands, availability and consistency of critical inputs become even more important. Through this backward integration, we expect to strengthen raw material security and gain greater visible visibility over costs. The proposed benefication and storage facility should help us connect sourcing more effectively with plant requirements and manage inventories more efficiently than ever before. This is the practical value we intend to create through integration, a stronger supply foundation for the business as it grows with the most sought after quality. Commercial mining is targeted to begin around mid-January 2027, subject to the necessary approvals. Our priorities to progress the approvals and operating arrangements required to bring the initiative into commercial operations somewhere near Makar Sankranti. Now, let us talk a little bit about the expanding approach that the company has reflected on. Our proposed facilities in Karnataka and Rajasthan are intended to bring Monolithisch closer to major industrial consumption centers in southern, western part of India. This will give us a new market in the southern region, in the western region and in the Middle Middle East and African subcontinents. Customer proximity has a direct commercial purpose. It should support more efficient deliveries, better rates and closer engagement with customer requirements. We want to become a dependable supply partner to the entire world with product quality and service that earns repeated business. Monolithisch is ready for this. Commercialization is targeted for July 2027 near Hospet in Karnataka and November 2027 in Udaipur, Rajasthan subject to project executions and commissioning. These proposed facilities are important steps towards a national manufacturing presence. They are also expected to strengthen our access to potential export markets as we develop our capabilities. Let us now talk about the greenfield facility for which the management has been waiting for since the IPO came into existence. Our greenfield capacity commenced commercial production on 10th October, 2026. After immense hard work of our team, we are delighted that now we are ready to serve the customers from there. This manufacturing facility draws vendor capabilities and technology from Australia, Finland, and, of course, India. We intend to build on this practical experience and the best technology possible in the planet as manufacturing size grows. As told before, the land available at the site also provides scope for lot of future developments of higher value silica products. We see this Metallurgica unit to be called as one of the India's finest silica complexes which will add to Monolithisch long-term development values.
Harsh Tekriwal (Monolithisch India Ltd): Internal accruals are central to our funding plans, supported by efforts to release cash through inventory optimization. The proposed mining lease model is intended to limit direct infrastructure expenditure while our regional expansion is planned to be financed largely through internal accruals. Our responsibility is to make the capital productive that requires careful commissioning, effective working capital management, and the conversion of manufacturing capability into lasting customer business. The competitive position we are looking forward to combines dependable raw materials, efficient manufacturing and closer access to the entire region. We believe these capabilities will reinforce on one another and build a integrated business model that has never existed in the silica platform. We will pursue that opportunity with ambition and accountability. Our subject is to turn the investment underway into stronger customer relationships, sustainable earnings, creating lasting value to our shareholders. I thank our employees, customers and business partners for their support, and our shareholders for their continued confidence. I will now hand over to Mr. Kshitij Kejriwal, who will take you through the financial performance for Q2 and H1 FY '27. Thank you.
Kshitij Tekriwal (Monolithisch India Ltd): Thank you. Good afternoon, everyone. I will take you through the consolidated results beginning with the second quarter, second quarter financial performances. Revenue for Q2 FY '27 was 53.6 crores compared with 28.5 crores in Q2 FY '26, representing a year-on-year growth of 88.2%. EBITDA increased by record volumes at 192.2% to 115.8 crores from 5.4 crores in the corresponding quarter last year. EBITDA margins improved to 29.5% compared with 19% on year-on-year basis. Profit after tax increased by 145.1% to 11.2 crores compared with 4.6 crores in Q2 FY '26. PAT margins improved to 20.8% from 16% on a year-on-year basis. First half financial performance, for H1 FY '27 revenue was 100.8 crores compared with 57.3 crores in H1 FY '26, an increase of a staggering 75.9% on a year-on-year basis. EBITDA increased from 141.1% to 28.9 crores from 12 crores in the corresponding period last year. EBITDA margins improved to 28.7% compared to 20.9% on a year-on-year basis. Profit after tax increased by 141.3% to 21.24 crores compared with 8.80 crores in H1 FY '26. PAT margins improved to 21.1% from 15.4% on a year-on-year basis. I would also like to take this opportunity to inform that our customer base has increased by substantial number on a year-on-year basis. We are also engaging in new territories, establishing our quality and product progress across industry. We are excited to embark on a backward integration journey as this will take MIL to new heights, not in terms of not just quality and quantity, but also in terms of creating an ecosystem that will benefit all. That concludes our opening remarks. We would now be happy to take your questions. I will hand over the call to the moderator again.
Moderator: Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question comes from the line of Shaurya Yadav with Growth Sapphire Ventures. Please go ahead.
Shaurya Yadav (Growth Sapphire Ventures): Yeah, am I audible, sir?
Harsh Tekriwal (Monolithisch India Ltd): Loud and clear.
Shaurya Yadav (Growth Sapphire Ventures): Yeah, thank you. And congratulations for the good set of numbers. My first question is on the competition like what if our existing competitor goes and acquire more mine in the East, will that create a problem
Shaurya Yadav (Growth Sapphire Ventures): pressure for us, like recently Raghav has done a JB with the TRL Krosaki for the same. So, how do you see the pricing situation in Eastern belt where our company is already operating at a lower cost and it will operate post the mine get started? Or do you think that since majority of our industry is unorganized, so the player which have raised the capital at the right time and do the expansion, they can easily corner the market?
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