→ 4 Line of Businesses-
- Product (AC,WM,Cooler etc)…margin 7-8%
- TV & Electronics…margin 2.5%
- Plastic Molding …Margin 6.5-7&
- Tooling…Margin 30%
→ 130 cr capex done by FY22
→ for FY22, Total product business rev = 478 cr
- AC = 297 cr (234 cr – Indoor & 64 cr – outdoor)
- WM = 167 cr
- Air cooler = 14 cr
- & Plastic molding = 80 cr
- Only For Q4FY22, Rev of AC= 200 cr, WM =50 cr, cooler =9 cr
→ In case of AC, it’s 75% of top line comes from ODM, in case of washing machine it is 100%ODM, in case of LED TV it is largely OEM and in case of air cooler it is 100% ODM
→ Guidance for FY23
o Sales guidance of INR 1800 crores which is a growth of 64%over FY2022 consolidated sales.
o Operating profit guidance of INR 126 crores which is a growth of 69% over FY2022 operating profit of Rs 74.5 crores.
o The growth in product business i.e., WM, RAC and Coolers is expected to be ~120% to over INR 1050 crores from INR478crores in FY2022.
o Capex for FY2023 will also be in the range of 130-140 crores
o Current WM capacity = 15000/month (full auto) & 50000/month (semi)
Current AC capacity = 125000/month (indoor) & 50000/month (outdoor)
o Company will double its washing machines capacity, while also expand Room AC (RAC) capacity significantly to 200,000 Indoor Units and 100,000 outdoor units per month, along with further backward integration by adding the set-up for RAC controllers.
→ Q1FY23 update
Total Rev = 535 cr
Prod Business = 59% of total rev.
AC rev = 250 cr
WM rev increased by 270% YoY
Q margin down due to forex loss taken into op exp
1.5MW solar plant commissioned…will meet 40% of peak demand of plant
WM capacity will be 2X by sept end
New capex for RAC will be online by oct end along with controller assembly plant
Net debt = 290 cr as on Q1FY23
Total Vol of WM sold in Q = 100000
Total vol of AC sold = 252000 (indoor) & 73000 (outdoor)
TV sold = 11500
Total Rev from TV will be 200 cr for FY23…TV season starts from Aug
The demand for AC & WM is very strong . Post sept /oct we will start have to say “NO” to clients
AC cap utilizn might b 100% in peak month
Customer concentration in AC = 60% in top 3 customer…this concentration will go down
AC gross margin is lower than plastic molding or WM
AC margin will be high due to backward integration.
Cap utilisatn of WM is almost 100%
Rev share of semi auto WM = 90% & Full Auto WM =10%
3 new platforms of semi auto WM to come online by oct.
→ PLI
- Total Capex =321 Cr. till FY27… 90cr done in FY22, Additional 70-80 cr will be in FY23
- From FY27, Total increamental sale in AC component = 1500cr or total sale from AC = 3000-3500 cr if AC components are utilised in house
- Total PLI benefit = 198 cr…Some of them will be pass on to customer
- PLI benefit = 15 cr …starts from Q1FY24, if all criteria met
→ Commodity Prices have corrected by 15-20%. We will review guidance for FY23 after Q2.
Margin Guidance for FY23 = 7%
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