Q2 FY24 Concall Notes:
Company Gaining Market Share in both India (30.2% with 160 bps improvement) and USA (gained 1.6% Market Share compared to previous Quarter). USA contributes 41% of the sales and with the acquisition of Jasmine Brand company is doing very well.
Company entered 5 new countries making the total presence to 78 countries.
Gross Margin has reduced to 31% due to increase in Input cost and reduction in Price in USA by the company due to competition. Company expects Margin to be in the range of 32-33%.
EBITDA Margin has improved 248 bps due to decrease in freight costs and economies of scale.
Revenue has grown 15% y-o-y. Historically H1: H2 sales ratio is 45:55. Management expects the same to continue this year also. Company expects H2 to be positive.
Organic soya business has de-grown because of this anti-dumping duty on India, So, company has put organic plant in Uganda.
Health and Convenience Segment: Company just launched Briyani kit and other products in India. In USA its growing at 8%.
Double digit revenue guidance given by the management.
Debt levels will not increase from here as per Management.
Working capital days improved, long term debts has been brought to negligible levels all these have led to significant improvement in Financial Ratios like Debt- Equity, ROE and ROCE.
For inclusion of SALIC we have diluted our equity which is more of a strategic nature so as enter the big Middle East Market. Management said they have no plans of further diluting the equity.
Invested and Biased
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