Shilchar AGM was conducted today. Key takeaways:
→ Demand and outlook continue to be strong both in India and exports. Current order book is 480 cr. Little delay in commissioning of new capacity mainly due to monsoons.
→ Will start utilizing new capacity mostly in H2 and expect 100% utilization in H2 itself. FY25 revenues expected to be 550 cr+ and expecting ~750 cr type of revenues in FY26.
→ Plan to manufacture transformers in same range as now since it’s a stronghold for the co. No plans to cater to higher kVA range.
→ Domestic & export demand both continue to be strong. Have successfully entered the EU market and like all markets it will take 1-1.5 years for significant revs to accrue. Expect this to be a strong market though can’t guide what percentage of revenue will come from here. Have already received first order. Mostly catering to the renewable sector in EU.
→ Though mgt didn’t answer it directly they seemed to suggest current profitability will sustain.
→ Call on next round of capex will be taken in Nov-Dec this CY(if I caught this correctly)
Q1 nos came few hrs post AGM. Probably for the first time Q1 revenues were same as Q4. This clearly underlines the strength in demand. If not for lack of capacity,revenues could’ve been higher than Q4 as well. Profitability continues to be strong and I sensed higher confidence on the same in the concluded AGM vs earlier years.
Disc.: Invested. Views are biased.
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