Acrysil – Kitchen sinks

Notes from November concall:

• Higher inventory buildup by sales channel previously. This should get liquidated by Q4 next year.
• Doubled supply to IKEA and sales to Grohe is increasing year-on-year basis.
• Board has decided to postpone the expansion of an additional 200,000 capacity of Quartz Sinks.
• 3 million to 4 million sinks are being manufactured in the EU area around Germany
  and Italy. Due to EU energy crisis and rise in manufacturing cost of EU companies. Acrysil will look to enter the market.
• For H1 FY2023, domestic revenues have increased by 58% Y-o-Y to Rs.71 Crores. We
  aim to achieve a turnover of Rs.300 Crores(annually) in the domestic market in the next two to three years.
• Lower margins this quarter due to standalone sales being down by 12%
• EBITDA margin will return to the normal level once sales normalize. Ideally post Q4.
• Debt on the balance sheet to increase from 130Crs to 150-155Crs by next financial year.
• Have entered into built in appliances and expects margin profile to be better than quartz sinks.
• Long term India versus export revenue will be about 50%:50% from current 29-71%.
• Management targeting sales of 1000Crs by next 2-3 years.