Conference Call Details
• Date: June 3, 2024
• Submission Date: June 7, 2024
• Host: Ventura Securities
• Key Executives:
• Rishabh Agarwal (Chairman)
• Bhavneet Singh Chadha (CFO)
Financial Performance
• Revenue from operations: INR 1,886 crores (11.64% increase YoY)
• EBITDA: INR 261 crores (107.36% increase)
• Profit After Tax (PAT): INR 161 crores (PAT margin: 14.84%)
Capital Expenditure and Debt Status
• CapEx: INR 180 crores over the past two years for machinery upgrades
• Zero-debt status maintained
• Future CapEx contingent on full capacity utilization (expected in 2-3 years)
Business Structure and Strategy
• Revenue split: 40% domestic, 60% international
• Current utilization rates: 55% to 60%
• Strong export strategy focused on the U.S. market
• Domestic strategy includes engagement with institutional customers and plans for 100+ customer experience centers
Competitive Landscape
• Premium pricing strategy against lower-cost imports
• Support from anti-dumping duties on vinyl flooring from China and Taiwan
Operational Insights
• High receivable days attributed to improved business cycles
• Confidence in normalizing collection times as revenue grows
Margin Expansion
• Margin improvements due to product quality and focus on higher-value items
• Similar margins for domestic and export segments due to value-added products
Future Projections
• Projected top line: INR 2,500 crores in the next 3-5 years
• Current capacity sufficient to meet projected growth without additional CapEx
• Expected decrease in working capital days as interest rates stabilize
Investor Engagement
• Annual turnover: INR 1,086 crores
• Net profit: INR 161 crores
• Confidence in maintaining margins and growth trajectories
Conclusion
• Management expects to sustain top-line growth and net margins around 16%
• Commitment to quarterly updates and open communication with investors