BigBloc Construction reports net profit of Rs. 77 million in Q3FY23
Cement

BigBloc Construction reports net profit of Rs. 77 million in Q3FY23

Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed companies in the AAC Block Space with a capacity of 0.57 million cubic meter (cbm) per annum. Green and non-toxic building construction material, AAC blocks are economical, light weight, sound proof, fire resistant with superior build quality and saves energy, eco-friendly and economical too compared to the traditional bricks. It is the only company in this segment which generates carbon credits.

The company is also setting up two greenfield projects with a combined capacity of 0.8 million cubic meter per annum – 0.5 million cubic meter per annum plant at Wada, Palghar (Maharashtra) and 0.3 million cubic meter per annum in joint venture with Thailand’ SCG Group Kapadvanj Ahmedabad (Gujarat). Post completion of both expansion, the company's total capacities will increase to 1.37 million cbm per annum making the company one of the largest players in the country. Company also expects to generate around 0.25 to 0.3 million tons of carbon credit every year post the expansion.

Commenting on the Performance, Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd said, "Company is growing from strength to strength and has delivered a robust operational and financial performance during the December quarter with healthy growth in revenue, profitability. Company is progressing well with its expansion plans at Wada, Maharashtra and joint venture with SCG Group and committed to complete all projects on time. JV with SCG Group aims to share techno-commercial knowledge, promote mutual growth & cooperation in the construction industry and bring new age building materials to Indian markets. This expansion will help the company to further penetrate its presence into untapped markets across the western regions and also make it the largest player in India. Strategic initiatives, operational efficiency with a vision for building a brand with innovative products are likely to contribute healthy growth and maximise value for all stakeholders in the near to medium term."

During the quarter, joint venture company - Siam Cement Big Bloc Construction Technologies Pvt. Ltd acquired 60,000 sq mtr land at Kapadvanj, Khdea district near Ahmedabad, Gujarat. The company is setting up a 0.3 million cubic meter per annum plant for ALC Panels and AAC Blocks. SCG is one of the largest cement and building material companies in South East Asia and will hold 48 per cent in the joint venture with 52 per cent being held by Bigbloc Construction Limited. The plant is expected to start commercial production in Calendar Year 2023.

BigBloc had achieved financial closure for Wada facility expansion in the month of July 2022. Total capex for the Wada project is estimated to be around Rs. 650 million and the company is eligible for 60 per cent subsidy for the project. Company expects commercial operations from the Wada facility in the month of February 2023.

Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed companies in the AAC Block Space with a capacity of 0.57 million cubic meter (cbm) per annum. Green and non-toxic building construction material, AAC blocks are economical, light weight, sound proof, fire resistant with superior build quality and saves energy, eco-friendly and economical too compared to the traditional bricks. It is the only company in this segment which generates carbon credits. The company is also setting up two greenfield projects with a combined capacity of 0.8 million cubic meter per annum – 0.5 million cubic meter per annum plant at Wada, Palghar (Maharashtra) and 0.3 million cubic meter per annum in joint venture with Thailand’ SCG Group Kapadvanj Ahmedabad (Gujarat). Post completion of both expansion, the company's total capacities will increase to 1.37 million cbm per annum making the company one of the largest players in the country. Company also expects to generate around 0.25 to 0.3 million tons of carbon credit every year post the expansion. Commenting on the Performance, Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd said, Company is growing from strength to strength and has delivered a robust operational and financial performance during the December quarter with healthy growth in revenue, profitability. Company is progressing well with its expansion plans at Wada, Maharashtra and joint venture with SCG Group and committed to complete all projects on time. JV with SCG Group aims to share techno-commercial knowledge, promote mutual growth & cooperation in the construction industry and bring new age building materials to Indian markets. This expansion will help the company to further penetrate its presence into untapped markets across the western regions and also make it the largest player in India. Strategic initiatives, operational efficiency with a vision for building a brand with innovative products are likely to contribute healthy growth and maximise value for all stakeholders in the near to medium term. During the quarter, joint venture company - Siam Cement Big Bloc Construction Technologies Pvt. Ltd acquired 60,000 sq mtr land at Kapadvanj, Khdea district near Ahmedabad, Gujarat. The company is setting up a 0.3 million cubic meter per annum plant for ALC Panels and AAC Blocks. SCG is one of the largest cement and building material companies in South East Asia and will hold 48 per cent in the joint venture with 52 per cent being held by Bigbloc Construction Limited. The plant is expected to start commercial production in Calendar Year 2023. BigBloc had achieved financial closure for Wada facility expansion in the month of July 2022. Total capex for the Wada project is estimated to be around Rs. 650 million and the company is eligible for 60 per cent subsidy for the project. Company expects commercial operations from the Wada facility in the month of February 2023.

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