I attended Modison AGM, sharing notes below.
1. At the last AGM, we were expecting to reach 410 cr. in FY25 which we already accomplished in FY24 and we are now expecting to reach 475 cr. in FY25. Congratulations for the very good growth. Can you tell us what drew growth in FY24 and do we now envisage reaching 1000 cr. earlier than FY30?
Strong order pipeline, confident of reaching 1000 cr. target by FY30
2. In FY23, we did 249 cr. from LV and 86 cr. from HV. Can you provide a sales breakup between HV and LV contact segments in FY24.
312 cr. LV, 92 cr. HV in FY24. Expect this mix to be similar in future.
Additionally, working on product diversification
3. What was the volume growth in HV and LV segments in FY24?
10% LV volume growth
HV volume growth difficult to quantify
4. We have done well in export markets and have been mentioning opportunities from our large customers as part of China+1. We also see advances from customers increasing from 4.1 cr. in FY22 to 13.57 cr. in FY24. Can you tell us the potential of growth in export markets, and the Chinese competition?
Export growth 26%
Automation investments will decrease cost of operations and improve competitive abilities vs Chinese suppliers
Continuous expansion in exports
Good orders from export customers
5. We were trying to move into supplying entire assemblies to our big customers which would have contributed to our margins. How is that going?
May get some advantage in FY25
6. We were earlier discussing increasing our business with Polycab. Have we started supplying commercially to them?
Has been dropped
7. With our current brownfield and greenfield expansions, how much capacity will we be adding in LV and HV segments? And will they be enough for reaching 1000 cr. revenues?
8. When will our new capacities come onstream?
Greenfield is almost completed
Capex done in FY24 for growth in next 2-3 years
9. Can you talk about our R&D initiatives in nickel and other alloys?
Doing R&D to introduce import substitution products
Improved EBITDA margins despite huge volatility in silver prices
Disclosure: Invested (position size here, no transactions in last-30 days)
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