One key watch out for Shivalik has been – Non Vishay Dale customer wins/supplies in USA in Shunt division. We have seen many names in bimetal space but not much action is Shunt space(beside a small qty to a mktplace).
Feb exports show some interesting development here – sizable shipment to a new customer, supply volume is similar to Vishay dale typical shipment hence not small.
Now https://davidccook.org/ is a non profit education setup hence difficult to say the quality of win or sustainability of future supplies. Difficult to see direct co-relation of shunts demand with education focused non profit inst. However lets see if future supplies show up as this volume isn’t small / pilot type qty.
We also don’t know if Vishay and Shivalik arrangement/contract is now at a stage where Shivalik gets room to supply broader universe(assuming exclusivity element on original setup with Vishay), this supply is very positive sign though on future possibilities.
Thoughts welcome on above if anyone has more info or can connect any dots, this aspect is key for shivalik to scale shunt volumes in USA geo, though they seem to be doing quite well outside US.
Another small update is that Shunt monthly export volume growth which was kind of nothing to talk about/negative in last qtr Q3 at 127000 Kg(given higher base in Q3 21 = 198000 Kg during shipment craziness and stocking times, we saw large shipments than usual to Vishay in those times) is inching back upwards in volumes per recent month shipments – though would be worth to wait and see this updated in Min of commerce site soon. However not as many Bimetal volumes in shipments in recent months – unless this is the lever management is consciously using to shuffle capacities to keep utilization high.( Bimetal logically would be slightly lower GM as was case in Q3).
One key inference is that Shivalik has delivered decent growth even with Shunt destocking(for lack of better word given normalized shipment scenario) in Q3, demonstrates management having multiple growth levers that they pulled effectively to deliver a respectable Q3. Worth noting that Realization and inventory losses risks were put to test as well in Q3.
If above plays out – will know soon if we are again looking at good Q4 (Given high expectations mkt will look for QoQ growth not just strong YoY as well GM).
Pl note above is based on a very high level assessment/tracking and could be off, do apply own discretion.
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