Stylam Industries Q3 results highlights -
One of the fastest growing companies in high end decorative laminates and allied products category
First company in India to introduce PU+Lacquer coating process for laminates
Operate Asia’s largest laminate manufacturing plant
Added facilities for lamination of MDF boards
Aprox 66 pc of revenues from exports
Current laminate capacity at 14.3 million sheets/year
Q3 financials -
Sales - 234 cr vs 177 cr
EBITDA - 39 vs 33 cr, Margins at 17 pc vs 19 pc
PAT - 24 vs 16 cr, Margins at 10 vs 9 pc
Last 5 yrs sales data -
338 vs 460 vs 462 vs 480 vs 660 cr ( no major dips despite COVID disruptions )
Last 9M sales at - 716 cr
Last 5 yrs EBITDA margins -
14 pc vs 17 pc vs 17 pc vs 21 pc vs 16 pc vs 16 pc ( for last 9 months )
Debt down at 71 cr vs 183 cr in Mar 18
India’s first company to set up manufacturing facility for Solid Acrylic surfaces - a higher margin product
Q3 sales were lesser by 2-3 pc due logistics issues faced for supplies to Russia, Uzbekistan
Company clocking 80-82 cr sales in India for last 3 Qtrs
Hopeful of clocking 325-350 cr domestic sales by Mar 23
Acrylic panels clocked 7-8 cr of domestic sales. Its an import substitute, new product. Company hopeful that this number should grow manifold in medium to long term
Margins likely to improve in Q4 due reduced RM prices
Hopeful of getting to 20 pc + EBITDA margins by Q1 FY 24 due reduced RM prices
Current capacity utilisation at 80 pc. Maint, Automation and Modernisation capex planned for Rs 30-40 cr ( @ 10 cr/year for next 3-4 yrs ). Should improve capacities by 30 - 40 pc
Depreciation and Interest expenses reduced in Q3 due reduction in debt and completion of depreciation of some assets
60 pc of exports are branded sales. Rest are to OEMs like Thyssenkrupp who use company’s products in their elevators
Company seeing growth in exports despite economic slowdown due Mkt share gains and greater acceptability of Made in India products
Confident of clocking 15-20 pc toppling growth next year as well !!!
Hopeful of selling Rs 14-15 cr of Acrylic panels in Q4 vs Rs 7-8 cr in Q3
Company’s Acrylic boards have a sale potential of Rs 300-400 cr in next 2-3 yrs. This yr sales are likely to be around 30-32 cr. The growth in this segment can be huge
Expect Q4 to be better than Q3
Disc: holding, biased.
Company’s shares are also held by Sunil Singhania in his Small Cap PMS portfolio
Subscribe To Our Free Newsletter |