• Coal exit: Steamhouse has discontinued coal trading, which represented 26% of revenue but contributed little to EBITDA. EBITDA margin rose to 24% in Q1 from roughly 17% last year, and management expects it to hold or improve slightly as waste-to-steam projects are commissioned and capacity use improves.
• Growth outlook: Management expects volume growth of 20 to 25%, but would not give a revenue forecast because steam selling prices are linked to coal prices. The company is targeting 30 to 35% EBITDA CAGR over the next 3 years; the discussion also noted that the stock trades at 73 times price to earnings and that valuations are expensive.
• Capacity plans: Utilization reached 41% in Q1 from 36%, but management said 50-55% is not achievable immediately. Projects in the pipeline would take capacity to around 1,065 tonnes, which management said could support ₹1,000-1,200 crore in revenue.
• Debt repayment: The company plans to use ₹180 crore to repay debt, starting with high-cost borrowing; gross debt was cited at ₹359 crore. Management said it could not yet provide the year-end debt figure while repayment and lender allocations were being worked out.
• New products: Steamhouse is pursuing nitrogen and oxygen sales to existing chemical and pharma customers, with no precise revenue target yet. Management expects higher percentage margins than steam because electricity costs are low, while fuel-cost pass-through clauses are intended to protect margins.