BIGBLOC - Bigbloc Construction Limited Share Price

In the earnings call on May 30, 2025, management of BIGBLOC Construction Limited provided a cautious but optimistic outlook. For Q4 FY25, the company reported consolidated revenue from operations of Rs. 646 million, reflecting a 13.7% sequential growth, and sales volume improved by 12.8% to 1,75,464 cubic meters. However, the full-year results indicated challenges; for FY25, revenue was Rs. 2,246 million, representing a decline of 7.6% year-on-year, primarily due to disruptions in the construction sector from election-related delays and unfavorable monsoon conditions.

Key forward-looking points highlighted by management included:

1. Capacity Expansion: The company completed Phase 2 of capacity expansion at the Wada facility, increasing total manufacturing capacity to 1.3 million cubic meters per annum.

2. New Joint Venture: The launch of India's first AAC wall panel plant at Kheda, Gujarat, in collaboration with Siam Cement. This venture secured an important work order for Tata projects, marking a significant entry into large-format walling solutions.

3. Diversification: BIGBLOC is venturing into manufacturing construction chemicals at the Umargaon facility, aiming to tap into fast-growing segments in the building materials sector.

4. Sustainability Initiatives: The total installed solar power capacity across the company's operations has reached 2,335 kilowatts, meeting 20% to 25% of its power requirements through renewable energy.

5. Future Expansion: The acquisition of land in Madhya Pradesh for establishing manufacturing operations, positioning the company to leverage anticipated growth in the construction sector in FY26.

Management expressed confidence that with the commissioning of the upgraded Umargaon plant and the stabilization of the new AAC wall panel operations, the company is well-positioned to benefit from the expected recovery in construction activity.

Q&A Section of the Earnings Call

1. Question: "Can you elaborate on the factors contributing to the 7.6% decline in revenue for FY 2025?"
   Answer: The decline was mainly due to a slowdown in the construction sector in India. Delays in infrastructure execution linked to the general election and prolonged monsoon conditions severely disrupted site activity, logistics, and order flows, especially in Maharashtra and Gujarat.

2. Question: "What are the expected benefits from the upgraded Umargaon facility?"
   Answer: The upgrades commenced operations in October 2024, and we anticipate enhanced operational efficiency and product consistency. This technology improvement ultimately positions us to scale back up to optimal production levels.

3. Question: "Can you provide insights on the capacity expansion and its impact?"
   Answer: We completed Phase 2 of our capacity expansion at Wada, increasing our total manufacturing capacity to 1.3 million cubic meters per annum, securing our position among the largest AAC block manufacturers in India, which will enable us to meet growing demand.

4. Question: "What is the company's strategy toward sustainability?"
   Answer: We are meeting about 20% to 25% of our power needs through a total installed solar power capacity of 2,335 kilowatts. This initiative aligns with our long-term environmental, social, and governance (ESG) goals and further reduces operational costs.

5. Question: "What are the company's growth projections for FY 2026?"
   Answer: With the commissioning of the updated Umargaon plant and stabilization of our new AAC wall panel operation, we believe we are positioned favorably to capitalize on the expected recovery in construction activity and project continued revenue growth.