Stylam came with lower sales (-8%) and improved margins leading to good growth in EPS (30%). They are facing headwinds in domestic markets and in Europe, and are very bullish on USA exports. Concall notes below.
FY24Q3
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Lost 20 cr. sales due to Israel war. Shipments to Europe affected, not much impact on USA exports
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Strong visibility with healthy enquiries for sourcing from global OEM (added many new OEM customers)
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Greenlam has global offices and Stylam doesn’t have any global office
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Expect US to become larger than Europe. Europe is currently very slow
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Domestic laminate business is taking time to scale up fast due to stiff competition. Have been weak in domestic markets
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Acrylic:
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5.4 cr. in Q3; 20 cr. in 9MFY24 (11 cr. domestic + 9 cr. exports). Utilization level is <10%
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Focus has been to sell under own Granex brand vs OEM sales which has delayed scaleup
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Expect Government to impose antidumping duty on imports of acrylic surface from China, and this will be a huge boost for them (700-800 cr. annual imports)
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Capex
- 150 cr. brownfield expansion is now increased 200-250 cr. (added one more production line from 3 to 4 now). Likely operational in 3QFY25. Revenue potential is 600 cr. (vs 500 cr. earlier) and expect a fast scale up as ~50% capacity is already booked from export customers
Disclosure: Invested (position size here, no transactions in last-30 days)
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