Company saw further revival in margins along with muted sales. Sales declined by 4% because of 12% drop in exports, countered by 17% increase in domestic revenues. Management is guiding for further improvement in gross margins, export demand is currently a bit tepid. Concall notes below
FY24Q1
- Reduction in ocean freight will have ~20 cr. impact in FY24 (impacted by 6-7 cr. in Q1)
- Existing capacities can support 1500-1800 cr. revenues
- Domestic volume: 14.2 lakh sheets (growth of 42%). Has lower realization vs exports (was 475 vs 660 last year; my own computation and it maybe because of product mix).
- Export volume: 13.8 lakh sheets (decline of -19%). Realization increased from 994 in Q1FY23 to 1080
- Expects GM expansion next quarter onwards (because of reduction in prices of chemicals)
- Acrylic: 9.5 cr. in Q1 (no operating losses). FY23 revenues was 21 cr. (12 cr. domestic + 9 cr. exports). Has setup a second line. Expect 40-50 cr. contribution in FY24. At full utilization of the 2 lines, can do 350-400 cr. revenues (produce 6mm and 12mm thickness). Stronger in South India
- Laminate Capex: 125-150 cr., will finish in 10-12 months (have applied for government approvals, so can get delayed). Expect revenues of 400-600 cr. depending on product mix. With this capex, they can reach potential topline of 2000 cr.
- Export volumes will revive by expansion into North and South America
Disclosure: Invested (position size here, sold shares in last-30 days)