Shilchar Technologies - Power & Distribution Transformers - Sunrise Sector?

Shilchar reported good set of nos. yesterday.

While revenues and margins were down sequentially,one should probably look at yearly comparisons.The AGM was also held yesterday,some KTAs:

→ Order book of 130 cr.,45 cr is exports

→ Seeing no slowdown in enquiries and pipeline continues to be strong

→ 55-60% business comes from renewable sector,30% exports and rest is coal,steel,sugar,etc. Company has been able to make inroads in the capex heavy segments and has gotten fairly large orders(not quantified) in India,expect this to be one driver of growth.

→ RM prices are down while realizations are strong given good exports.Company expects 16-17% EBTIDA margins for fy23.

→ Work only with private players and will continue to.

→ Expect to do 225-50 cr revenues in FY23.Can do 350 cr at peak.Brownfield capex will take 18-24 months,have huge surplus land available for doing so.

→ WC is well under control,no cash flow issues.Looking at monetizing old plant(amount not disclosed)

Overall,management seemed bulllish on growth for 1-2 years atleast.Given Q1 nos. achieving 16-17% margins for full year might be tough but let’s see what they end up with.

Disc.: Invested.Views are biased.

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Hi All,
Does anyone know the capacity utilization of Shilchar Tech? I believe they manufacture part of transformers for renewable solar industry.