Notes from Q4 Concall. The line wasn’t very clear, so there may be some inaccuracies in my notes, please go by transcript when its released.
Q4 FY23 Concall
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Acrylic solid surfaces
- Q4 revenue 9Cr, says EBITDA breakeven already (Doubtful about this)
- April turnover 4Cr
- Exports possible
- Going to participate in an exhibition in Germany
- Have filed for anti-dumping duty on acrylic SS imports
- Quality on par with Korean imports
- Exports to Israel, Philippines etc.
- Peak revenue capacity is 400Cr – 500Cr
- FY24 revenues next year should be > 50Cr definitely (Otherwise plant should be closed down)
- Margins maybe similar to laminates
-
Laminate exports
- No challenges in global demand outlook
- Current capacity utilisation is 75-80%
Employees – 8 to 9 only, no offices, no marketing needed (How are they selling 60% branded in export markets then? Who/what is driving the brand?) - Domestic market – 150 sales people; Don’t see much manpower addition in domestic sales biz
- New Capex plan announced
- Existing land
- Going for new value-added products – new sizes etc
- Focused mostly on export markets
- 150Cr expenditure within this year (99%) – targets to start operations by March FY24
- Entering High pressure Laminates – turnover will be 500Cr at max utilisation
- Same location as existing integrated plant
- Says capex will happen via internal accruals (How? CFO is 66Cr and cash on books is 27Cr)
- Margins should be better than existing laminates biz (Less competition)
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Existing laminates capacity – After existing plant 40% expansion total revenue capacity will be 1200-1300Cr
- 20Cr already spent, 20Cr will be spent further in FY24
- Stylam is growing in South India faster (40-45% YoY growth in South India)
- Revenue growth for next 2 years – targeting 20-25% growth every year; Margins will improve as sales scale up
- Says 100-150bps overall margin expansion should happen YoY in FY24
- Q4 domestic vol – 12L, export 15L
- FY23 domestic vol – 45L, export 56L
- 150 member domestic sales team (What was the no last year?)
Disc: Invested
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