BIGBLOC Const.

BIGBLOC Construction reported Q3 FY25 revenue from operations at INR 57 crores, marking an 8% decline YoY but a 10% increase QoQ. Operating EBITDA stood at INR 6 crores, a significant 62% YoY and 21% QoQ decrease, resulting in an EBITDA margin of 10.74%. Net profit after tax was INR 0.3 crores, down 97% YoY but up 50% QoQ. For the nine months ended FY25, operating revenue was INR 260 crores (down 9% YoY), EBITDA was INR 24 crores (down 46% YoY), and PAT was INR 3.5 crores (down 84% YoY).

Sales volume in Q3 FY25 increased marginally by 2% YoY and approximately 12% QoQ. Consolidated capacity utilization across the three running plants was around 53%. The Umargaon Wadi plant's utilization was around 41% as it recently completed upgradation and commenced commercial operations. The joint venture plant with Siam Cement and BigBloc Construction Technologies incurred a loss of INR 5 crores in Q3 FY25 due to lower utilization during its initial production phase.

The company launched 'Smart Build Wall' under its JV with Siam Cement, which has received product test certificates from IIT and ARAI. BigBloc is the only Indian company to supply 20 feet walls. The product line has expanded into construction chemicals, including block jointing mortar, ready mix plaster, and tile adhesive (NxtFix, NXTPLAST). The rationale for manufacturing these products is to improve realization and sales, targeting the same customer base as AAC blocks, with expected EBITDA margins of 18-22%.

BIGBLOC secured a significant INR 4.5 crores work order from Tata Project Limited for the supply and installation of 2 lakh square feet of 100 ml AAC panels at Micron's semiconductor facility in Sanand, Gujarat. This marks Tata Project Limited as a new customer. The company has also acquired land near Indore in Central India for a new AAC block manufacturing setup and is exploring land opportunities in Southern India, aiming to double its installed capacity from 1.3 million cubic meters to 2.3-2.5 million cubic meters in the next couple of years.

The company is committed to sustainability, installing an 800-kilowatt rooftop solar power project at its StarBigBloc plant and a 1,350-kilowatt system at its JV factory. These additions will bring the total solar power capacity to approximately 3,475 kilowatts across the company and its subsidiaries. Currently, 16% of the total power requirement comes from renewable sources, with an intention to increase this to 35-40% going forward^⏳.

The Q3 FY25 performance was impacted by lower demand during the Diwali festival season and state elections in Maharashtra. Post-December, a pickup in demand has been observed in Maharashtra, driven by infrastructure projects like Navi Mumbai Airport and IT growth in Pune. Realizations were lower due to a decrease in raw material costs (cement prices at 4-5 year lows) and competitive pressures, leading to benefits being passed to customers.

As of December 31, 2024, the company's debt-equity ratio was in the range of 1.15:1 to 1.2:1. Management stated that as a growing company with ongoing expansions, the target is not to aggressively repay debt but to maintain a comfortable debt-equity ratio of 1:1 to 1.5:1 in the long term, supported by increasing capacity utilization and improving margins.