Carysil (earlier Acrysil) – Kitchen sinks

Carysil ltd –

Q3 FY 24 results and concall highlights –

Revenues @ 188 vs 137cr, massive YoY jump of 37 pc
EBITDA @ 36 vs 25 cr ( margins @ 19 vs 18 pc )
PAT @ 15.3 vs 11.9 cr ( due higher tax outgo )

9M revenue split – geography wise –

Exports – 79 vs 78 pc YoY
Domestic – 21 vs 22 pc YoY

Product wise split of 9M revenues –

Quartz sinks – 50 vs 52 pc
Steel sinks – 11 vs 13 pc
Appliances – 11 vs 11 pc
Surfaces – 27 vs 25 pc

Company’s UK subsidiary – Carysil Products Ltd, clocked a 9M revenue run rate of 72 cr vs last yr’s 12 M run rate of 89 cr

EBITDA margins were adversely impacted due integration of United Granite LLC ( kitchen top fabrication company in USA ). From Q4, expect EBITDA margins to sustain at around 20 pc

Current Quartz sink capacity @ 10 lakh sinks/yr
Current Steel sink capacity @ 1.8 lakh sinks/yr

Company has opened 03 state of the art showrooms @ Mumbai, Gurugram, Ahmedabad – to showcase their full range of products including appliances

Company is trading and manufacturing ( some of them ) appliances like – Chimneys, Wine Chillers, Dish Washers, Hoods, Cook Tops, Microwave Owens, Built in Owens

Company’s current dealer network @ 3200, distribution network @ 85 in the domestic market

90 pc of company’s exports are on FoB basis. Hence the impact of Red Sea issue on company’s margins should be minimum

Company has tied up with the biggest retailer (ie Howdens UK ) of Kitchen Surfaces, Sinks, appliances, modular Kitchens etc in UK . They do an annual sales of > 25000 cr with an EBITDA margins of around 20 pc. They sell 10k Sinks / week. Company has received their first order from them. It’s a sizeable order !!!

Company’s new facility capable of manufacturing > 1 lakh Kitchen appliances / yr to be operational by end Mar 24

Commercial supply of SS sinks to IKEA to begin in Q4. Should be a reasonably good Qty

Q3 is generally a weak Qtr for the company due Christmas holidays. Q4 should see some sales and margins pick up

In India, company’s B2B business ( like selling directly to builders ) is looking encouraging. Confident of doing 200 cr topline from India business inside next 2 yrs. Hiring a lot of people in the B2B segment

Because of the Red Sea issue, the freight costs for the Chinese products have gone up even further. Its a kind of blessing for the company

The recent acquisition – United Granite LLC in US did a revenues of 15 cr in Q3. When acquired, this company was doing an EBITDA margins of around 10 pc

Company is bullish on its faucets and taps business. Compny’s products have received very good customer response. This business should also pick up going forward

Company’s guidance of 1000 cr topline may be achieved in FY 25 or latest by FY 26

Disc: had sold earlier at around 1100 levels. Have started buying again, biased, not SEBI registered