The company is very good, but the promoters have a history of giving false expectations. They had given guidance of 50% growth, but in actual the growth was only 15%-20%. The management has also accepted in concall that they had given 50% growth but not able to meet them.
2 Likes
The current valuation justifying the 15-20% growth rate. Also the management remains transparent in accepting the same in last concall. Very few SME companies declaring quarterly results and doing concall. At least frog is doing the same. Telecom sector is growing and govt seems quite keen on indigenous manufacturing. I can take my bet accordingly.
Disc - Invested
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Have they done a concalls after Q3 results? Can’t find the transcript or recording anywhere
Great Job, Mam, please keep doing it.
First thing to look for any company is honest promoters. Kore digital has issued clarification today , may like to go through. I am invested and will stay invested for years ahead. DYOD
anyone tracking the company? latest concall gives some high level insights into their next focus areas. They plan to enter low margin PCB mfring business (to drive topline). Started some business with Jio.
1 Like
I am holding this and was a bit concerned after the CEO left, some notes from latest concall on 16th May. I see they have got some new orders so will keep it for now.
Revenue and Financial Performance
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Frog Cellsat Limited (FCL) reported a 16.7% revenue growth in FY24, reaching INR 1,577.33 Mn compared to INR 1,351.89 Mn in FY23.
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Adjusted EBITDA stood at INR 218.53 Mn with a margin of 13.85%, while PAT was INR 155.19 Mn with a margin of 9.84%.
Operational Highlights
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FCL moved to a new state-of-the-art facility in Noida, centralizing and streamlining operations.
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Notable achievements in Q4 FY24 include welcoming new customers, concluding trials for interference mitigation systems, and adding seven new products to the portfolio.
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The company secured orders from key partners, resulting in a robust order book position of INR 610 Mn as of March 31, 2024.
Growth Opportunities and Strategies
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FCL sees a bright future with the industry undergoing a major CAPEX uptake and aims to contribute through its innovative products.
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The company plans to invest in a Surface Mount Technology (SMT) line for PCB assembly, diversifying into Manufacturing-as-a-Service beyond just telecom.
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FCL is entering the EMS (Electronic Manufacturing Services) industry with PCB assembly, but it will be an add-on business with lower margins compared to their current business.
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The company is looking at new initiatives like interference mitigation solutions and EMS services to reach the long-term revenue guidance of INR 500 crores in four years.
Key Customers and Market Share
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Approximately 70% of the company’s revenues come from mobile operators, with Airtel being the biggest customer in the telecom sector, followed by Tejas and Jio.
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Frog Cellsat Ltd estimates its industry share from the products it manufactures to be around 10% of the total $5 billion opportunity.
Management Changes and Recent Developments
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The outgoing CEO, Pankaj Gandhi, has left the company, and Konark Trivedi has taken over as the CEO again until a replacement is found.
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The recent substantial trading volumes in the stock market are likely due to investors picking up on the company’s growth potential from various initiatives and investments.
Product Development and Expansion
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Frog Cellsat Ltd introduced smart repeaters for smart meters, targeting areas with poor mobile signal, expanding their product offerings.
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The company expects substantial growth in the new products segment, particularly in smart repeaters for smart meters.
Order Book and Execution
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The company’s order book remains consistent at around INR 61 crores, with a steady execution timeline.
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Frog Cellsat Ltd expects to add to its deal pipeline as it executes the current order book.
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The company’s order book stood at INR 61 crores at the beginning of the year and continues to grow weekly.
Competitors
- The company’s competitors in the telecom industry include PROSE Technologies, HUBER & SUHNER, and RV Telecom.
1 Like
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