Surat, BigBlock Construction Ltd., one of the leading manufacturers of aerated autoclaved concrete (AAC) blocks, bricks and panels, for Q3FY23 reported Rs. 7.70 crore (net profit margin of 15.5%), registering a consolidated net profit of 81.6% year-on-year. BigBloc Construction Ltd reports Net Profit of Rs. 7.70 crore in Q3FY23, a rise of 81.6% YoY
In Q3FY22, the company posted Rs. 4.24 crore in net profit (net profit margin of 8%). Total revenue during Q3FY23 ended December 2022 was Rs 49.55 crore. Ebitda for Q3FY23 was Rs. 13.31 crore (Ebita margin 26.9%) was recorded in Q3FY22 compared to Rs. 7.42 crore against Ebita (Ebita margin 14%), showing a growth of 79.3%. Earnings per share for Q3FY23 rose 81.2% YoY to Rs. 1.09 per share.
Established in 2015, BigBlock Construction Limited is the largest and only listed company in the AAC block space with a capacity of 5.75 lakh cubic meters (CBM) per annum. A green and non-toxic building construction material, AAC blocks are affordable, light weight, sound proof, fire resistant with superior build quality and save energy compared to conventional bricks. It is also environmentally friendly and economical. It is the only company in this segment that generates carbon credits.
The company is also setting up two greenfield projects with a combined capacity of 8 lakh cubic meters per annum, including 5 lakh cubic meters per annum at Wada, Palghar (Maharashtra) and 3 lakh cubic meters per annum at Kapdvanj, Ahmedabad (Gujarat) in a joint venture with Thailand’s SCG Group. Includes plants. After completion of both the expansions, the total capacity of the company will increase to 13.75 lakh CBM per annum making the company one of the largest in the country. The company also expects to generate around 2.5 to 3 lakh tonnes of carbon credits per year after the expansion.
Commenting on the company’s performance, Mr. Narayan Saboo, Chairman and Managing Director, BigBlock Construction Limited said, “The company is moving from strength to strength and has demonstrated strong operational and financial performance during the December quarter with healthy growth in revenue, profitability.
Wada is progressing well with its expansion plans in Maharashtra and its joint venture with SCG Group and is committed to timely completion of all projects. The joint venture with SCG Group aims to share techno-business knowledge, promote mutual development and cooperation in the construction industry and bring new age construction materials to the Indian markets.
This expansion will help the company further expand its presence in untapped markets in the western regions and also make it the largest company in India. A strategic initiative with a vision to build a brand with innovative products, operational efficiency is likely to lead to healthy growth and maximum value creation for all stakeholders in the short to medium term.”
During the quarter the joint venture company – Siam Cement Big Block Construction Technologies Pvt. Ltd. acquired 60,000 square meters of land at Kapdvanj in Kheda district near Ahmedabad, Gujarat. The company is setting up a plant with a capacity of 3 lakh cubic meters per annum for ALC panels and AAC blocks.
SCG is one of the largest cement and building materials company in South East Asia and holds 48% stake in the joint venture and 52% is held by Bigblock Construction Limited. The plant is expected to start commercial production in calendar year 2023.
The company achieved financial close for the expansion of the Wada facility in the month of July 2022. The total investment for the Wada project is around Rs. 65 crore and the company is eligible for 60% subsidy for the project. The company expects commercial operations from the Wada facility in February 2023.
