Concall notes below.
FY23Q4
- Volume growth: 17% in Q4 and 14.36% in FY23. 284 lakh meter PVC sold in FY23
- Export OEM: 45% growth in Q4 (18.38% in FY23)
- OEM export: 142.3 cr. and 20 lakh meter (43-44 cr. to Mercedes and will be same in FY24). This implies realizations of 712/meter which is way higher than blended average of 450-500/meter. BMW will start by end of 2023 or beginning of 2024 (30,000 – 35,000 m/month run rate)
- Have added Ford Motor as customer and added models for Stellantis
- Total export: 210 cr. in FY23
- Domestic auto OEM: Sales increased by 24% and hoping to maintain double digit growth in FY24
- PU: 2 lakh meter in Q4 (8 lakh meter and 25cr. revenues in FY23). Expect 25%+ growth in FY24
- FY24 sales growth: 5% in footwear; 60% in export; overall 17-18% growth
- Some delay in export OEM order; margins will be maintained at current level
- Under invoicing continues to be a problem in PU imports, trying to work directly with big brands to sell PU. It’s similar to auto OEMs where it takes time to get qualified with customers. Trying to break into sports shoes and leather boots
- Footwear sales increased by 10% in FY23 (vs FY22). Footwear demand was down in March-May and prices are coming down
- Retail furnishing: Have appointed 350 dealers in FY23 (increased sales by 60% in FY23 on low base in FY22) and want to add 300 dealers in FY24 (and increase sales by 30% in FY24). Have appointed 24 sales professionals. Margins are good, will take a few years to create brand name
- Capex: Don’t need further capex to reach 1100-1200 cr. of revenues, will contemplate putting a plant in Mexico after that
Disclosure: Invested with a small tracking position and no transactions in last-30 days
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