- Revenue for Q2 FY25 was INR 105.5 crores, a 26.2% YoY increase and 34.1% QoQ growth.
- EBITDA margin declined to 17.97% due to competitive pressures and raw material cost fluctuations but rebounded by 34.7% QoQ.
- PAT and EPS showed a 30.1% QoQ improvement.
- Growth driven by high-value acrylic products in Western and Southern India.
- EBITDA margins faced challenges due to prolonged monsoons, muted demand, and raw material price volatility.
- INR 96 crores of revenue from core PU business, INR 11 crores from the acquisition of the Welcome brand, and INR 1.2 crores from Oikos products.
- Facility currently operating at 60% capacity utilization, expected to reach 75% by FY-end.
- Holds a 28% market share in Delhi NCR in the wood coatings segment.
- Asian Paints leads with 42% in the same region but focuses more on primary sales.
- Focus on secondary sales and contractor-driven demand.
- Inventory levels increased due to higher planning for raw materials and finished goods.
- Transition from imported to locally produced inventory expected to stabilize in 4 months.
- Supply chain disruptions due to geopolitical issues (e.g., Iran-Israel conflict) impacting imports.
- Contributions from Welcome and Oikos were clarified as INR 11 crores and INR 1.2 crores, respectively.
- Margins expected to recover to 20%-21% by year-end due to price hikes and cost optimization.
- Decorative segment growth revised downward due to intense competition and pricing pressures.
- Export plans for Russia, UAE, and South Asia are progressing, with EUR 20 million revenue potential.
- Expanding distribution network, now at 2,476 nodes, excluding OEMs.
- Investing in brand visibility and launching initiatives like the Sirca Parivaar app for better customer engagement.
- Exploring inorganic growth through acquisitions in South India.
- Increasing focus on high-value acrylic PU products.
- Market shift toward sustainable, high-quality coatings.
- Aggressive competition in the decorative segment impacting margins.
- Planning a new facility in Gujarat (capex INR 20-25 crores) to expand PU production capacity.
- Export to Russia, UAE, and South Asia in trial phases with a revenue potential of EUR 20 million.
- Import timelines extended due to geopolitical conflicts, increasing inventory needs.
- Targeting 40% revenue growth for FY25, driven by acrylic PU and OEM business.
- EBITDA margin expected to stabilize at 20%-21% for the full year.
- Confident about achieving full-year guidance with better demand in H2.
- Q3 revenues expected to be slightly muted due to construction bans in Delhi NCR.
- Planned capex of INR 20-25 crores for a new facility to produce 16,000 tons/year of PU products, generating potential revenue of INR 380-400 crores.
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