Company continued reporting good growth, with sales growing by 21% and EPS by 26%. I continue to be surprised how they are sustaining these growth rates, when the industry is growing at 10-12%. Concall notes below
FY24Q2 & CNBC
- Printer base increased to 18,000+ (sold 705 printers in Q2 vs 675 in Q2FY23)
- Since last year, have focused more on larger corporates who give higher business per printer. These entities contribute ~70% of current revenues. Due to this shift in focus, number of printers sold in FY24 might be lower
- Market share has increased to 19% (vs 18.5%)
- Revenue breakup : printers (15%), consumables (62%), spare parts (7%), service (14%)
- Consumable capacity utilization is 60-65%, but its pretty easy to debottleneck these. Don’t want to go beyond 75% utilization
- Industrials: 65%, packaging: 35% (peers are 35% industrials and 65% packaging)
- Pharma track and trace: have got some of the top 300 brands, but they don’t have first mover advantage here. One production line can generate revenues of 25-45 lakhs
- Hoping to see similar growth in H2FY24 if current business trajectory continues
- Won’t be looking at much capex, might go for inorganic expansion
- 1750-1800 cr. was industry sales in FY23 (big 4 was 1350-1400 cr.)
- Price increase has been successfully passed on the customers
- Tax: Guwahati lower tax benefit will go away in May 2025, FY26 will go to normal corporate tax
Disclosure: Invested (sold shares in last-30 days)
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