3rd Apr23 –Sheela Foam —Rahul Gautam –CNBC Interview :
–Last couple of weeks the demand has increased and the direction is upwards and its getting better
–Closely linked to TDI RM prices as of Q3 it stood at INR 243/KG which is lower than Q2 , where is it ? –The prices are down and its oscillating and its currently at INR 220/KG so there is a drop from Q3.
–Margins will improve and our products in B2B where selling prices are linked to RM prices there is +ve. The wedding side of the Biz , the contribution of TDI to cost of goods is much lower & therefore it will be a mixed bag and there is a lag between the impact of these prices on margins.
–Inorganic growth ? –co is looking to complete decision making for @FURLENCO acquisition in next 2 months which is a furniture rental co.
–Balance Sheet status ? –Reasonably healthy & we have some 750/800Cr cash on books and debt is relatively negligible but in some places it is there i.e Australia/Europe subsidiaries. Size for Acquisition is dependent on Acquisition but we dont need to borrow from anywhere. The acquisition will be much lesser than 500Cr. The said co is profitable on operating level but loss is there on the financial side. Revenues are 200Cr/year & it can go to 400Cr/Yr once we get involved
–Feather foam / starlight –these brands are primarily supplying to MBOs and all our sleepwell products are completely with the EBOs and there are large no. of MBOs which we have to address and its growing on a steady basis and its dependent on geos and MBOs we go after & it has higher growth as the base is small and universe is much larger.
–FY23 we will be single digit , what’s the outlook for FY24 ? –As of now growth will be 12/13/14% & Margins will be similar 13/14% EBITDA
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