Q3 conference call notes
- Approved buyback of 15 lakh shares (1.07% of equity) at 320 (payout: 48 cr.) along with dividend of 0.75. Payout will be increased to 35-40% (buyback will be every 2-3 years)
- Experienced V-shaped recovery registering highest quarterly sales crossing 500 cr. Currently seeing demand traction with good orders lined up in February and March. However January domestic retail sales have dipped
- Phoenix lamps brand showing very good growth (especially in South India), expanding capacity. Current run rate ~ 8 mn./month (capacity 110 mn./year). Adding a capacity of 80-100 mn
- After market division of cables market is showing strong growth, setting up an aftermarket fulfillment division
- Hedges 50-60% of net currency exposure
- There have been some scheduled changes from European clients with some orders being shifted to future months
- Current cables margin of 20% is not sustainable because of commodity price inflation. No pass through clause in automotive division
- Osram is acquiring from both Chennai and Noida facilities
Disclosure: Invested (position size here)