Q1FY2024:
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Export: another subdued quarter for export market. Overall revenue degrew by 47%. The key reasons are attributed to the continued Saudi issue and unavailability of bulk opportunity during the quarter. The base quarter had 200+ cr of bulk deal which was not materialize during this quarter. Other than Saudi market, there is growth of 75% YoY on export renenue.
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Europe will play as a key market outside middle East. Post FTA with UK, there can be a huge opportunity with current custom duty is 175Euro/ton.
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Domestic: First quarter with 1000+cr sales. Strong growth of 14% during the quarter. Branded market share reached 35%+ in domestic market.
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Margin: margin shrink sharply to 14.1% from 19.1%. this is is attributed to higher paddy cost and lower export sales
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Guidance: No guidance on normalisation of sales in export market. Domestic to grow at min 10%. Q4 export to be significant better compared to Q3
Great business but has faced continued challenge right from VVIP chopper to Saudi distributor to now another Saudi distributor. But two things which has changed in recent years are increased focus in the domestic market and second is the active participation from the gen next. From the con calls it seems they understand the business and have the hunger to push for the growth which might be missing the earlier gen.
Disc: Invested
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