Sirca Paints India Limited

Yes but the announcement was made just recently in NSE. And no other information is available. Even in the 6th June Concall nothing was mentioned. Just little curious as BCB italia holds around 18% of the company.

I had mailed to the company secretry yesterday and have been very pleasantly surprised to get the reply so soon…

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AR 2022

image

https://archives.nseindia.com/annual_reports/AR_20174_SIRCA_2021_2022_02072022134920_07022022140002.zip

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Good numbers from Sirca… growth in revenue and profit …

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SIRCA_28072022222724_INTIMATION.pdf (5.8 MB)

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Sirca paint to be listed in BSE soon.

SUB: INTIMATION OF IN-PRINCIPLE APPROVAL RECEIVED FROM BSE
PURSUANT TO REGULATION 30 OF SEBI (LISTING OBLIGATIONS AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
REF: SYMBOL-SIRCA
Dear Sir/Ma’am,
This is to inform that the Company, Sirca Paints India Limited has received InPrinciple Approval from BSE dated 03.11.2022 for Direct listing of its equity shares
to be dealt on the Exchange.
Further, we would also like to apprise you that the Company has initiated the
process for listing and trading approval of equity shares and will update you
accordingly.
You are requested to take the above information on record

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Company has posted excellent Q2 numbers.

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can anyone share concall highlight or concall transcript or audio link for 11 Nov 22

Concall is scheduled on monday 14th Nov.

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I found very confident management tone in their investor call today. (I may be biased).

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Short Summary of stuff I found interesting…

Plant currently at 35% utilization …expected to grow to 100% within 1 year.

60 mixing machines (80% in North), 50 more to be added in H2.

Revenue breakup: 67% Italian,25% Unico (MC, thinner etc.),4% wall paint .

New markets being entered in retail …Maharastra, Karnataka, Gujarat, Telengana (started distributing), In final stages of negotiation with WB, Kerala, TN dustributors.

Targeting FY23 End 2000 retail points .

Q4 heavy marketing spends to be balanced with local resin production etc . Ebidta margin may reduce in 2-3 quarters starting Q4 but long sustaining margin should be 23%.

Italian PU resins also to be manufactured post approval from the Italian partners. Team expansion happening new plant, chemists, sales team etc. working capital days were high in H1 because of extra stocking to handle supply uncertainty (war, power shortage in Italy)

Nepal export is showing traction but other export countries are still at nascent stage .
6 products will be getting manufactured in India, which were being made in Italy till now …in next 1 month .

25-30% topline growth expacted 3 to 5 years in conservative estimate . But they expect 40% plus themselves even though they are reluctant to guide that way.

rev share – 60% (North), 25% Maha (OEM), East is least .
New plant getting ready in Coimbatore …8 crore capex …in next 1 year…

Edit: As @sameernics wrote …"the management also mentioned that in the current plant they are planning to expand the capacity with an additional investment of 3-4 cr.

All the capex including Coimbatore plant will be done through internal accruals."

Disc: invested

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@Ghonarbochon
Also, if I heard it correctly, the management also mentioned that in the current plant they are planning to expand the capacity with an additional investment of 3-4 cr?

All the capex including Coimbatore plant will be done through internal accruals.

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Results…

YOY QOQ
Change Q3 2022 Q3 2021 Change Q2 2022 Change
Income 6521 5320 23% 7291 -11%
Other Inc 96 135 -29% 153 -37%
PBT 1415 1219 16% 1954 -28%
PAT 1053 916 15% 1441 -27%
EPS 3.84 3.34 15% 5.26 -27%

Better than their peers, it seems.

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It looks like the 23% growth in topline is being maintained. We can hope this will grow dramatically once the non-debt capex is complete and online (along with the OPM)

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Looks like this quarter the other expenses what contains advertisement cost has eaten up the margins. Last concall I asked whether we will see operating leverage playing out they told it will not be much bcz of increased advertising cost. Any way qoq degrowth seems to be due to ban in sprey paints die to air pollution in North India near Delhi just like last year

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  • I see very positive management comments on the expected demand and growth.
  • New product, eco freindly waterbased coating has been launched.
  • Resin plant manufacturing started.
  • Making new investments for the 20% capacity expansion.

Source: Q3 investor presentation.

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Reason for margin compression. Forex loss came out of syllabus though :grin: Long term outlook is very +ve and we might have a buy and hold forever type company in it’s small cap stage :grin:

Disclosure: Invested and looking to buy more based on technicals. If someone interested in technical analysis can see here.

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can anyone share concall highlight or concall transcript or audio link

The concall is hosted in 2nd and 4th quarter.