My observations from all the concalls.
Revenue Concentration -
(So our largest customer does not constitute more than 20% of our sale on an average roughly that is the number, now top five customers across the group about 55% to 60% roughly.)
If they can bring down the revenue concentration in the coming years, it will give an investor more comfort.
Contract longevity
No, so it is awarded per model so let say there is a new model that a customer launches and there is a life-time of that order so let say that model go to run for six years or seven years we are nominated as a supplier so there are categories of products like dials for example which run like that. If you talk of decal so fundamentally these are the items that are refreshed every year at an average so the color change the shape of the decal changes but the model that is awarded to you normally continues unless a supplier does not perform upto the expectation of the OEM.
Premium Product revenue share
so in FY2019 it was about 3% of our sales and today premium products last there they were 16% of our sales, moving forward, especially in the Indian market and the export market we see that the premiumization trend will continue. Since the bet on SJS is largely on Premuimization, it’s imperative to track the contribution from this segment to the revenues.
Competitive Advantage
So as you see, as I mentioned in my earlier calls the people we compete with in export markets are manufacturers in Europe, North America. This is a batch mode operation business where it is very difficult for those guys to compete with us and we are further improving our competitive edge by constantly looking at ways to reduce cost and improve margins.
Basically they have a low cost of production advantage
Inventory Management
No, the OEMs maintain some stock, they ask us to maintain some stock in some cases where the OEM has a constraint, they would like to have just in time supplies, we do that also, but most of them is through stocks. So there is a little variation as I said and you rightly understood that one should look at a larger frame, so year-on-year is the better number to look at than to look at immediate quarterly inwarding because sometimes the OEM have some stock for a particular model which they do not want to lift the material at the moment so depending on the situation in the supply chain, so absolutely, to look at it quarterly may not give the right picture completely
New Product –
There are huge opportunities that exist in medical devices. We have already started the supplies to this sector. As you can understand the volumes are very large. We are also supplying to industrial applications and gaming applications, so anything that requires displays, anything that requires human-machine interface.
Order to Delivery timeline (lead time)
So, as I said to the previous question, our lead time, so we can actually deliver parts within two weeks, so dependents on the product category, so we have 11 product categories that we manufacture, so the lead time varies for each.
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