Carysil (earlier Acrysil) – Kitchen sinks

Carysil Q4 and FY 23 concall highlights –

FY 23 –

Revenues at 593 vs 492 cr. Domestic revenues – 131 vs 97 cr. Exports – 462 vs 318 cr

EBITDA – 108 vs 114 cr

PAT – 52 vs 65 cr

Volumes –

Quartz sinks – 5.14 vs 6.50 lakh units
SS sinks – 1.09 vs 1.05 lakh units

Kitchen appliance – 55k vs 48k units

25 pc of revenues came from solid surface sinks vs NIL in LY

22 pc of revenues from domestic mkts vs 5 pc LY

Expanded domestic network to 3100 vs 1500 dealers LY

Received double orders from IKEA for quartz sinks

Expanded Quartz and SS sink capacity to 10 and 1.8 lakh units

Dubai based subsidiary for selling kitchen appliances to go live by Q2 FY24

Acquired- ‘Tap Factory’ Ltd in UK

For Q4 FY 23-

Sales- 146 vs 139 cr
EBITDA- 26 vs 28 cr (margins down to 18 vs 20 pc)
PAT- 12 vs 17 cr

Renewed their contract with ‘Karran Inc’ based in US for supply of Quartz Sinks worth $ 68 million over a 5 yr period

Demand from US,UK is descent, Europe has been weak

Gross Debt on 31 Mar at 220 cr

Company likely to gain Mkt share in Europe due high energy prices there

Out of total sales of 5.14 lakh Quartz sinks, 20 pc were sold in India

Carysil Sinks have good brand recall in India. Once a customer asks for it, it becomes easy to sell other built in Kitchen appliances to him/her as the trust factor is pre-existing. This is a big advantage

Without this, Carysil would not have been able to compete easily in the highly competitive built-in appliance segment

Company receiving multiple queries from customers across the globe. Hope to convert some of them into formal contracts shortly

Guiding for a topline growth of 15-20 pc

In that case, EBITDA margins also likely to expand to around 20 pc kind of levels. Plus input costs are also coming down

Aprox Gross Margins –

Quartz Sinks- 48 pc
Steel sinks- 35 pc
Appliances- 40 pc

Aim to sell around 6 lakh Quartz sinks in FY 24

This number may get revised upwards if the company wins a few new contracts / supply agreements

No major Capex planned for FY 24

Company likely to hit a 1000 cr kind of topline runrate in FY 25 or 26 with India sales around 25 pc

Once a builder uses Carysil, they always come back. Company is focussing on setting up a dedicated B2B team to sell to reputed builders/architects. This may fuel domestic growth

‘Tap Factory Ltd’ has great technology and descent Mkt access. That should help Carysil in Europe

Planning to launch completely new range of Sinks, Faucets and Kitchen Hoods in Sep 23

Fall in Quartz Sinks volume due inventory rationalisation by customers post over-stocking during COVID

Disc: Holding, Biased. Management commentary sounds bullish. I am reasonably hopeful