My notes from Concall and recent interviews
a. In Q3FY23 Consumer Electronics, Lighting products divisions got impacted. Revenues from mobile segment were subdued
b. For TVs which fall under Consumer Electronics the main point of revenue degrowth was fall in Opencell prices in international market which is main component for TVs. Although volumes have grown on steady state in TV business
c. For Mobile segment there was delay in addition of new clients and existing client(Motorola) has reduced its ordering due to slowdown in US. Management is guiding for around 8000/- Cr revenue from this segment in FY24
d. In mobile segment two customers will be added and the orders will start flowing from Q2 onwards
e. The guidance was revised downwards each quarter in FY23 and management said as they are B2B company they get the projections from their customers and they give these projections to the investors
f. For FY24 they will get projections from their customers by March 2023
g. Orders in IT hardware segment will also start from FY24
h. OPM is steadily improving as raw material price hike is passed on to customers in ODM segment and value engineering steps they have taken at the plants
My views
a. There may be delays in executions or order wins and may impact few quarters but if we see long term then addition of new clients along with new products should drive the growth
b. If the slowdown in US/Europe continues then it may hit export demand for Mobiles/Lighting segment
c. Capacities are getting built with large projections. As and when new customer wins happen they can grow the business rapidly as the infra will already in place
d. Management highlighted debt reduction and future capacity building can be planned with internal accruals
e. Growth in Mobile segment will be crucial factor to be on track to achieve faster growth
Interviews
https://www.youtube.com/embed/RSV4lGmDyEI
https://www.youtube.com/embed/oBYzk04hixM
https://www.youtube.com/embed/BibliyluAAU
Q3 ConCall
https://www.youtube.com/embed/X2kWMOfMP6Q
Disc: Invested
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