KDDL Limited Q4 and FY24 Conference Call Summary
Overview
• Date: May 15, 2024
• Participants: Chairman Yashovardhan Saboo, CFO Sanjeev Kumar Masown
• Focus: Operational and financial performance for Q4 and FY24
Financial Performance
• Q4 Results:
• Total income: INR 89 crores (+2%)
• EBITDA: INR 27.1 crores (+4.3%)
• Profit before tax: INR 21.6 crores (+27%)
• Full Year Results:
• Total income: INR 360 crores (+15%)
• EBITDA: INR 102 crores (+29%)
• Profit before tax: INR 79.8 crores (+36%)
• Profit after tax: INR 220 crores (up from INR 69 crores in FY23)
• Consolidated Results:
• Q4 total income: INR 357 crores (+16%)
• Full year total income: INR 1,420 crores (+25%)
• EBITDA: INR 270 crores (+53%)
• PAT: INR 137 crores (+79%)
Segment Performance
• Watch Components:
• Revenue: INR 247 crores (+10%)
• Precision Engineering:
• Revenue: INR 95 crores (+25%)
• Ornamental Packaging:
• Revenue: INR 15 crores (+18%)
Strategic Developments
• New plant in Bangalore for high-quality steel bracelets targeting Swiss markets.
• Estima AG working towards profitability; Silvercity to launch revamped Favre Leuba watches.
• Stake sale in Ethos Limited generated INR 193 crores for shareholder rewards and growth.
Future Plans
• Capital expenditure of INR 45 crores planned for FY25.
• Final dividend of INR 4 per share, plus interim dividend of INR 58.
Management Insights
• Focus on high-quality metal bands for Swiss brands and future expansion into watch components.
• Strong order book for Eigen division; targeting high-growth sectors like aerospace and electric vehicles.
• Emphasis on sustainable growth rate of 25% CAGR, prioritizing quality and profitability.
Challenges and Considerations
• Addressed concerns about yield in precision manufacturing and the complexity of different business segments.
• Acknowledged the slow initial growth in precision engineering due to customer relationship dynamics.
• Plans for factory visits instead of frequent quarterly calls for better communication.
Market Context
• Discussion on the "China Plus One" strategy and the potential for supply chain shifts to India.
• Plans to enter the watch case segment by FY26, focusing on the Indian market.
Conclusion
• KDDL Limited remains optimistic about long-term growth while maintaining a cautious approach to expansion and profitability.

KDDL Limited Conference Call Summary (May 15, 2024)
Overview
• KDDL Limited discussed Q4 and FY24 operational and financial performance.
• Led by Chairman Yashovardhan Saboo and CFO Sanjeev Kumar Masown.
Financial Performance
• Q4 Results:
• Total income: INR 89 crores (+2%)
• EBITDA: INR 27.1 crores (+4.3%)
• Profit before tax: INR 21.6 crores (+27%)
• FY24 Results:
• Total income: INR 360 crores (+15%)
• EBITDA: INR 102 crores (+29%)
• Profit before tax: INR 79.8 crores (+36%)
• Profit after tax: INR 220 crores (up from INR 69 crores in FY23)
• Consolidated Results:
• Q4 total income: INR 357 crores (+16%)
• FY total income: INR 1,420 crores (+25%)
• PAT: INR 137 crores (+79%)
Segment Performance
• Watch Components:
• Revenue growth: 10% to INR 247 crores.
• Precision Engineering:
• Revenue increase: 25% to INR 95 crores, driven by exports.
• Ornamental Packaging:
• Revenue growth: 18%.
Strategic Developments
• New plant in Bangalore for high-quality steel bracelets.
• Stake sale in Ethos Limited generated INR 193 crores for expansion and shareholder rewards.
• Swiss subsidiary Estima AG working towards profitability, facing market delays.
Future Plans
• Capital expenditure of INR 45 crores planned for FY25.
• Final dividend of INR 4 per share, plus interim dividend of INR 58.
• Expansion into high-quality metal bands for Swiss brands and other watch components.
Growth Strategy
• EIGEN segment targeting high-growth sectors (aerospace, electric vehicles).
• Plans to scale EIGEN revenue from INR 100 crores to INR 500 crores.
• Focus on sustainable growth rate of 20-25% CAGR.
Manufacturing and Technology
• Emphasis on in-house design capabilities to improve yield in precision manufacturing.
• Plans for manufacturing primarily in Switzerland for the Favre-Leuba brand.
Market Positioning
• Acknowledgment of the "China Plus One" strategy for supply chain shifts to India.
• Future projects expected to develop over the next 12-15 months.
Communication and Engagement
• Suggestion for factory visits for analysts instead of frequent quarterly calls.
• Management open to further questions via email.