BirlaNu Limited — Investor Meet, 14-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance**: HIL Limited reported consolidated revenues of Rs. 774 crore for Q2 FY25, reflecting a year-on-year increase of 7%. The first half revenues rose by 8% to Rs. 1,881 crore. However, the company faced challenges with a profit before tax (PBT) of Rs. 6 crore, compared to a loss of Rs. 25 crore in the previous year. The Pipes and Fittings segment showed remarkable growth, with volumes up 63% year-on-year and revenue growth of 46%, supported by recent acquisitions.

**Future Outlook and Growth Drivers**: Management expressed optimism for H2 FY25, suggesting improved demand driven by anticipated government spending and a rebound in channel demand for Pipes and Fittings. Strategic initiatives focused on cost efficiencies and product innovation are expected to bolster growth moving forward.

**Order Book and Operational Updates**: HIL's order book remains robust, with an expected recovery in government spending vehicles, particularly in the JJM (Jal Jeevan Mission) segment. The company is expanding its Construction Chemicals business, which saw a 29% revenue increase year-on-year.

**Analyst Q&A Insights**: Analysts raised concerns regarding the persistent losses in the Parador segment, with management citing one-time costs and ongoing investments in marketing and personnel, which are expected to yield positive results in the upcoming quarters. The competitive landscape remains challenging, though management expressed confidence in maintaining market share and improving profitability through strategic cost management.

**Market or Regulatory Updates**: The discussion highlighted a recovery trend in PVC resin prices and improvement in raw material costs, which is expected to favor the overall profitability in H2.

**Strategic Focus Areas**: Key strategic themes include market expansion, heightened brand engagement, and a focus on value-added products across HIL’s portfolios.

**Investor Insight**: Given the company’s financial resilience and proactive strategic measures, there appears to be a positive trajectory for both revenue and margins, justifying a ‘buy’ position for investors looking for growth opportunities within the building materials sector.