Q1FY24:
• Proposed capacity addition in thermoforming 1,000 MTPA
• Developed 8 new products
• 79 new customers onboarded including 10 overseas customers. Added 8 new customers in IM segment and 15 customers in barrier packaging.
• Started Exports to South Africa; Total number of countries being served now 10. Company’s export revenue quadrupled on Y‐o‐Y basis.
CONCALL NOTES:
• Volumes up 16% yoy – Lower realizations on account of lower raw material prices – Inventory loss due to raw material price drop caused drop in ebitda margins – Prices are stable now – Profitability will improve during the year.
• Export revenues up 3.5x times – 10.1cr from 2.7cr yoy.
• Olive Ecopack – Commercial production by end of December – Fully recyclable Products will be used by QSR and delivery services – 200-220cr of revenue potential – to be scaled over 2-3 years – will look for 30-40% exports.
• Guidance: 285cr (+/- 5cr) revenues for FY24 – lower from earlier guidance of 300cr due to lower raw material prices impacting realizations. Volume guidance intact – Ebitda margins guidance maintained (14%, +/-1 %)
• Will consolidate operations for 1, 1.5 years and improve profitability taking advantage of operating leverage before going for further expansion – 320-330cr revenues can be achieved in FY25 with small capex of 3-5cr.
• 16cr advance given by customer to fund capex requirements to fulfill their demand of packaging products – Capex done last year.
• Raw material cost is generally 61-63%
• Tube laminates – currently scraped due to technical issues. Still it’s a promising product and company will look at it during next phase of capex.
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