AI-generated · cited to primary sources · not investment advice
Quest Flow (543982) Jun 2024 Filing Analysis
Does management do what it says?
The November 2024 presentation reports only H1 FY25 results and does not provide H2 FY25 revenue. Accordingly, the H2-versus-H1 seasonal commitment cannot yet be tested. (1 not yet due, 1 met, 1 exceeded across 3 tracked commitments)
“Yeah. This year, definitely, there will be similar trend... So it always it will be a trend for at least a couple of years.”
Management plans to allocate funds to R&D for water treatment, foundry and automation initiatives.
“But with the inclusion of these waters, with start with this not inclusion, with this starting of this new venture water and also foundry, we will consider some we'll allocate some funds for R&D because that will be the need of that product to do continue doing some kind of research so that we keep on developing.”
The captive foundry is expected to handle approximately half of operational requirements in the current year and potentially all requirements from the following year. — target: At least 50% of load in the current year; potentially 100% of operational needs from the following year (+2 more commitments)
“This year, we think that the foundry will take at least half of the load, half of the load. And half of the load will still depend on out source foundry outsource partners... I think a year down the line, you can say maybe next year onwards, the foundry will be fully taking care of for all our operational needs.”
Management intends to evaluate and potentially enter the ship-valve replacement market as Indian ship repair develops.
“But, I think in next 3, 4 years, this is a very good business opportunity, and we are looking into that, sir. Yes.”
See the full cited Management analysis of Quest Flow
Where does growth come from?
The water-treatment business is a newly launched growth avenue. It had already generated approximately 20–25 enquiries, with management saying most appeared convertible into business. The addressable Indian water and wastewater market was cited at USD 2.08 billion by 2025, growing at 9.7% annually. Commercial traction is early but encouraging. (1 new trend across 1 signal)
“We almost got 20, 25 inquiries right now. And most of the inquiries we are seeing that we can convert into the business. ... The Indian water and wastewater treatment market is also anticipated to grow at a 9.7 % CAGR reaching to USD 2.08 billion by 2025.”
See the full cited Future Growth analysis of Quest Flow
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