Krishca Ltd : A SME offering steel strapping Solution

Attended the Q3 FY24 concall yesterday.
FEW HIGHLIGHTS : –

1. Commercial production from new plant will commence from the end of this month (FEB 2024).

2. Revenue potential from both plants, combinedly, is Rs. 300 crs from strapping sales only apart from packaging contracts. Management is optimistic on achieving it by next three years.

3. From packaging contracts, Rs. 100 crs revenue is possible within two years apart from strapping sales.

4. For FY25 company has Rs. 10 crs of packaging contract in hand and company is participating in various tenders of packaging contract worth Rs. 300 odd crs.

5. The company has generated 16% of sales from export up to 9M FY24.

6. In middle east, the company is losing Rs. 35 odd crs of orders yearly from Chinese and Korean competitors because their products are cheaper there.

7. So, Company is planning to set up new production line in middle east, to compete from Chinese and Korean companies there, through joint venture. This project will be financed through internal accruals and issue of preferential shares etc.

8. The company is diversifying into other primary packaging solutions also apart from steel strapping solutions. That is the reason for appointing Mr. Jagajyoti Naskar as an additional director of the company, who has 24 plus years of experience in this field.

9. The company will do concall after every quarterly result.

   Disclosure:- invested.