Cello World Limited Investor Call Summary (May 27, 2024)
Financial Performance
• Q4 and FY24 Results:
• 11% growth in topline revenue for FY24.
• Q4 revenue increased by 5% year-on-year.
• EBITDA grew by 20%.
• Total revenue reported at INR 2,000 crores with a gross profit margin of 52.6%.
Growth Drivers
• Strong demand in:
• Hydration
• Back-to-school
• Furniture segments
• New facility established in Rajasthan.
Future Projections
• FY25 Expectations:
• Revenue growth anticipated at 15%-17%.
• Steady EBITDA margins projected at 24%-26%.
Product Performance Insights
• Consumer Ware Category:
• Strong sales in lunchboxes and insulated/glass bottles.
• BIS Regulations:
• Compliance deadline extended; company prepared with BIS certification for insulated products.
Capital Expenditure and Funding
• Plans for INR 30-35 crores capex for domestic vacuum bottle manufacturing.
• Proposed Qualified Institutional Placement (QIP) to address director's loan and support capex in glass production.
Export Contributions
• Exports from writing instruments increased from 8% to 10% of revenue.
• Growth in Kleeno category noted.
Margin Expansion Strategy
• Focus on premiumization in consumer products to enhance margins.
• Expected higher margins from back-to-school items and lunch carriers.
Glassware Division
• Full capacity ramp-up expected in 1.5 years.
• Sales target for glassware and Opalware division set at INR 460 to 475 crores for FY25.
Inventory and Receivables
• Increased receivables and inventory due to extended credit terms.
• Expectation to normalize inventory levels by September.
Market Conditions
• Anticipated volume growth of 7-8% in consumer segment, 11% in writing instruments, and 18-20% in furniture for FY25.
• Temporary disruptions noted due to elections, but recovery expected.
Distribution and Product Development
• Plans to expand distribution for writing instruments.
• Minimal raw material inventory maintained to mitigate price fluctuation risks.
• Exploration of new product categories with upcoming QIP funding.
Conclusion
• Company remains focused on growth opportunities and potential acquisitions.
• Emphasis on addressing market challenges while leveraging long-term benefits from new standards.

Cello World Limited Q3 FY24 Earnings Conference Call Summary
Financial Performance
• Q3 Results:
• Revenue: ₹527 crores
• EBITDA: ₹137 crores
• PAT: ₹90 crores
• Year-on-year growth: 24% (Revenue), 30% (EBITDA), 30.4% (PAT)
• Nine-Month Performance:
• Total Revenue: ₹1,488 crores
• Strong gross profit margins:
• Consumerware: 52.8%
• Writing instruments: 58.7%
Management Insights
• Growth Momentum:
• Improved during festive season
• Ongoing product portfolio and distribution network expansion
• Margin Sustainability:
• Confidence in maintaining margins despite subdued demand
• Recent improvements attributed to declining raw material costs
Segment Performance and Projections
• Sales Seasonality:
• March quarter expected to outperform December due to seasonal demand
• Consistent margins anticipated
• Glassware Segment:
• Initial lower pricing during ramp-up, but margins expected to stabilize
• Revenue Growth Target:
• Projected growth of around 20% for upcoming periods
Distribution Strategy
• Retail Reach:
• Current reach: 55-60% across India
• Plans to expand to 250,000 retailers in writing instruments category
• Rural Market Growth:
• Expected increase from 18-20% to 35-40% in consumerware sales over 3-5 years
Capacity Utilization and Capital Expenditure
• Current Utilization Rates:
• Consumer products: 75-78%
• Furniture: 70-72%
• Writing instruments: 75%
• CAPEX for FY25:
• Projected around ₹55-60 crores, focused on existing product lines
Pricing and Marketing Strategies
• Pricing Adjustments:
• Typically through discount schemes rather than changing MRP
• Advertising Spending:
• Targeting 3-4.5% of sales to support growth
Product Development and Expansion
• New SKUs:
• 80 new SKUs in consumerware
• 40-50 new SKUs in writing instruments
• Moulded Furniture Segment:
• Shift towards value-added products
• Volume growth target of around 15%
Conclusion
• Ongoing group restructuring efforts and invitation for further inquiries through investor relations advisors.

Cello World Limited Investor Call Summary (November 28, 2023)
Financial Performance
• H1 FY24 Results:
• Revenue: ₹961 crores
• EBITDA: ₹244 crores (25.4% margin)
• PAT: ₹169 crores
• Q2 FY24 Results:
• Revenue: ₹489 crores
• Gross Profit: ₹261 crores (53.4% margin)
• PAT: ₹87 crores (17.7% margin)
• Growth Metrics:
• Overall growth: 9%
• Volume increase: 13%
• Consumerware: 66% of revenue; Writing instruments: 17%; Molded furniture: 17%
Business Strategy
• Key Verticals:
• Consumerware
• Writing Instruments
• Molded Furniture
• Expansion Plans:
• New manufacturing facility in Rajasthan
• Focus on innovative products and market presence, especially in writing instruments
Product Segment Insights
• Q2 Revenue Breakdown:
• Consumerware: 67%
• Writing Instruments: 17%
• Molded Furniture: 16%
• Growth Projections:
• 20% growth expected in H2 FY24
• New soda glass factory projected revenue: ₹230 crores
Operational Insights
• Capacity Utilization:
• Writing instruments: 68-70%
• Opalware: 60% with plans to reach full capacity in 1-1.5 years
• Manufacturing:
• 79% of revenue from in-house manufacturing
• Focus on value production over volume
Market and Competitive Landscape
• Market Trends:
• Shift in sales distribution towards online and modern trade
• Seasonal spikes in writing instruments during back-to-school and consumerware during festive seasons
• Competitive Position:
• Higher margins due to premium product focus
• Potential merger with Wim Plast to enhance shareholder value
Future Outlook
• Revenue Growth Expectations:
• Projected 20% growth with improved operating profit
• Investment Plans:
• Annual capital expenditure of ₹40-60 crores for growth initiatives
• Focus on niche kitchen appliances and enhancing product offerings
Additional Insights
• Licensing Structure:
• 20-year exclusive license for the Cello brand with automatic renewal
• Export Potential:
• Significant opportunities in the global market for writing instruments
• Marketing and Sales:
• Marketing expenses projected at 2-2.5% of revenue
• Online sales target to increase from 8% to 10-12% of total revenue