Building on Nirvana’s post, here are my notes from their call. Company continues their strong growth trajectory with sales growing by 32% and EPS by 63% in this quarter. Management seemed very confident of delivering 20%+ growth going forward.
FY23Q4 concall
- Targeting 20-25% sales growth, margins will improve with scale
- Existing laminate capacity can gives 1200-1300 cr. revenues (including capex of 40 cr. out of which 20 cr. was spent and remainder will be sent in FY24)
- Approved proposal for setting up a plant to manufacture laminates for 150 cr. in wholly owned subsidiary company (Stylam Panels Limited). Can contribute 500 cr. to revenues (mostly for exports). These will be higher margins
- Quarterly exports are showing a declining trend (from 169 cr. in Q1 to 151 cr. in Q4) because of reduction in ocean freight component, there is no volume decline
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Acrylic:
o 4 cr.+ revenues in last month, 9 cr. in Q4FY23. Next quarter acrylic sales will show a step jump
o Should be able to reach 50 cr. in FY24
o Installed new machine last quarter
o Capacity is for 400-500 cr.
o Margins maybe similar to laminates - Laminate: 75-80% utilization
- Have not seen much impact of recession in sales in Europe (especially in high value add laminate)
- US contribution is currently 4-5%
- Marketing: domestic 150 sales personnel (no need for further addition) + export 8-9 personnel
- Growing faster in South India (40-45% growth)
- Margin should expand by 1-1.5% in FY24
Disclosure: Invested (position size here, no transactions in last-30 days)