Mayur Uniquoters Q1FY23 Concall Update
(Nirmal Bang Securities)
Growth & profitability to resume on the back of (i) improvement in availability of automotive chips for PVs, (ii) new client additions in Auto (iii) bounceback in footwear industry and (iv) Easing RM pressure
Outlook: Positive in long term
• Revenue came at Rs. 204 Cr (+26% QoQ, +73% YoY) vs QoQ Rs. 162 Cr, YoY Rs. 118 Cr
• Gross Profit Margins came at 40.6% vs QoQ 38.9%, YoY 40.8%
• EBITDA Margin came at 17% vs QoQ 18.6%, YoY 14.9%. EBITDA Margin has declined sequentially despite improvement in gross margin due to steep increase in other expenses. Co attributed the increase due to high freight cost.
• Supply to BMW will start from Q4FY23.
• Co has not been able to scale up revenue from traditional customers like GM & Chrysler since many years as they are preferring production lines which are in US.
• Co has forward integrated into foam manufacturing.
• Will expand furnishings dealers from 75 currently to over 1,000 in coming years. This segment has good margins.
• On succession planning: Son in law of Mr. S K Poddar is already working in the co. His son has also started working together and will take around 1-2 years to groom him.
• Current utilisation is 70-72%. Co expects to reach full utilization in 1.5 years. It takes 1 year to put up a line. Putting up one line of PVC costs Rs. 30 Cr in a brownfield site while in a green field site it costs Rs. 100 Cr.
• Revenue mix during Q1: Exports general 50cr, exports OEM 32cr, domestic OEM 36cr, domestic replacement 44cr, domestic footwear 63cr, domestic furnishings 6cr.
• PU revenue during Q1 was 7cr.
Stock is trading at P/E of 16.7x FY24E EPS
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