I was looking at the annual revenues of BCC Fuba. In FY19 they saw a revenue jump of almost 170% (41 Cr v/s 15 Cr in the previous year). However the operating margin was only about 1.75%. In the previous years they were making losses at the operating level. The operating margins seem to have improved in post-covid years. In FY23 it was about 10.7%.
My question is - what is the level of sustainable margins that one can expect in this industry?
I think in terms of value addition, bare PCB manufacturers do the least amount of value addition in the electronics manufacturing industry. I have seen some videos on the how bare PCBs are manufactured and it looks like there are no barriers to entry, which means there will always be competitive pressure on margins.
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