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Rajshree Polypack Limited Q1 FY25 Earnings Conference Call Summary
Date and Submission • Date of Call: August 6, 2024 • Submission to: National Stock Exchange of India on August 12, 2024
Key Financial Highlights • Turnover: Increased by 8.26% to INR 78.7 crores • Profit After Tax: Rose by 91% to INR 4.03 crores • EBITDA Margin: Improved to 14.72%
Company Developments • Production Capacity: Expansion underway • New Products: Introduced to the market • Export Sales: Growth observed, with significant orders anticipated from a new distributor (INR 15-20 crores annually)
Management Insights • Order Size Inquiry: Expected between INR 15 crore to INR 20 crore annually • Olive Subsidiary Revenue Guidance: Revised to INR 55 crore to INR 60 crore due to delays • Olive Subsidiary Loss: Projected loss of INR 2 crore this financial year, with positive contributions expected next year
Working Capital and Revenue • Outstanding Days: Increased from 35 to 40 • Inventory Days: Decreased from 158 to 126 • Barrier Packaging Revenue: Grew to INR 6.75 crore from INR 2.75 crore year-over-year • Plastic Segment Growth Guidance: 15% revenue growth expected, driven by volume
Product Updates • Biodegradable Products: Low market demand due to high raw material costs • Tube Laminates Project: Currently on hold • Export Strategy: Increased traction due to a broader product range
Conclusion • Closing Remarks: Mr. Thard thanked participants for their engagement.
Rajshree Polypack Limited Q4 and FY24 Earnings Conference Call Summary
Date and Submission • Date of Call: June 5, 2024 • Submission to NSE: June 11, 2024
Key Financial Highlights • Turnover: ₹274.39 crores for FY24, up 8.8% YoY • Volume growth: 17.56% • Realization per ton down by 10.5% • EBITDA: Increased by 3.5% to ₹36.77 crores • Margins fell to 13.4% from 14% • Profit After Tax (PAT): Decreased to ₹9.5 crores from ₹10.88 crores • PAT margin: 3.46% • Q4 FY24 Turnover: ₹69.37 crores, a 7% increase • Q4 PAT: ₹2.38 crores, down from ₹2.58 crores in Q4 FY23 • Export Sales: Increased threefold to ₹42 crores
Segment Performance • Injection-Molding Segment: Revenue of ₹20.86 crores, with plans for capacity expansion • Olive Ecopack Plant: Commenced production in March 2024, with market expansion plans
Future Projections • Volume Growth: Projected 15% growth in plastic volume for FY25 • Revenue Expectations: • Injection-molding: ₹30-35 crores, up from ₹20 crores last year • Barrier packaging: Expected to grow to ₹28-30 crores • Olive Ecopack: Projected revenue of ₹170-180 crores for FY25
Debt Management and Working Capital • Debt Reduction Plans: • Long-term debt reduction by ₹5 crores • Short-term debt reduction by ₹10-12 crores • Working Capital Cycle: Targeting a reduction from 30 to 20 days
Operational Insights • Production Start: Began on the 30th of the month, leading to minimal revenue last year • Inventory Management: Plans to reduce inventory and working capital by 10-12% over the next two quarters
Conclusion • Management Outlook: Optimistic about future growth and profitability improvements, with a focus on capacity expansions and better pricing strategies.
Rajshree Polypack Limited Q3 and 9M FY24 Earnings Conference Call Summary
Financial Highlights • Q3 FY24 Performance: • Turnover: Rs. 64.82 crores (20.27% YoY increase) • EBITDA: Rs. 9.51 crores (35.5% increase) • Profit After Tax: Rs. 2.75 crores (162% increase)
• Nine-Month Performance: • Turnover: Rs. 205.02 crores (9.42% increase) • Profit After Tax: Rs. 7.16 crores (13.45% decline)
Business Developments • Introduction of six new products. • Expansion of customer base and significant increase in export revenues. • Ongoing investments in new machinery and digital initiatives.
Strategic Insights • Diversification Strategy: • Focus on Horeca industry to mitigate seasonality. • Distinct product offerings in plastic and paper packaging.
• Olive Ecopak Initiative: • Projected sales numbers and marketing presentation scheduled for March. • Rationale for issuing bonus shares due to capital and reserves disparity.
Working Capital and Market Focus • Increased working capital requirements due to new packaging segments, expected to stabilize soon. • Focus on sustainable, paper-based food packaging through Olive JV. • Revenue target for Olive JV: Rs. 200 crores with a post-tax ROCE of around 18%.
Operational Updates • Rising power and fuel costs due to relocation to Gujarat; evaluating solar power generation. • 60% of machines for Olive Ecopak production have arrived; trial runs expected by March 2024. • Technological upgrades added 1,000 metric tons per annum capacity, projected additional revenue of Rs. 12-15 crores.
Sales Performance • 40% growth in packaging sales attributed to new customers and products. • Profitability from injection molding expected to begin this quarter. • Barrier packaging generated Rs. 5 crores in Q3 and Rs. 17.2 crores over nine months. • Stabilization of raw material prices after volatility.
Conclusion • Mr. Thard expressed gratitude to participants for their questions during the call.
Rajshree Polypack Limited Q2 and H1 FY24 Earnings Conference Call Summary
Conference Call Overview • Date: November 7, 2023 • Submission to: National Stock Exchange of India • Key Management: Chairman Ramswaroop Thard, CFO Sunil Sharma
Financial Results • Q2 FY24: • Turnover: Rs. 67.5 crores (3.58% increase YoY) • EBITDA: Rs. 9.11 crores (9.36% increase YoY) • Profit After Tax: Rs. 2.31 crores (6.53% decline YoY)
• H1 FY24: • Turnover: Rs. 140.19 crores (5.04% increase YoY) • EBITDA: Declined by 6.82% • Profit After Tax: Declined by 38%
Product and Market Developments • Introduction of six new products. • Significant increase in export revenues. • Appointment of a new Chief Marketing Officer to enhance branding and marketing efforts.
Seasonal Demand Insights • Seasonal demand primarily in dairy and beverage sectors (55-60% of business). • Margin breakdowns for rigid plastic sheets and thermoform products are similar. • Price reductions in raw materials (polypropylene and polystyrene) passed to customers.
Strategic Initiatives • Potential investment in a dedicated production line for tube lamination. • Growth expectation of 12%-15% for Barrier Packaging with strong margins. • Expansion of export markets, targeting quarterly revenues of ₹12-15 crores in 2-3 years.
Financial Projections and CapEx • Anticipated sales for the fiscal year: ₹280-290 crores. • Break-even expected at sales of ₹100-120 crores next year. • CapEx: Rs. 26.82 crores for FY23; Rs. 5 crores for FY24 to date.
Capacity Utilization • Extrusion, Thermoforming, and Printing: 95%-98% capacity utilization. • Injection Molding: 70% capacity utilization with potential for increase.
Q&A Highlights • Concerns about rising raw material prices; no major hikes expected short-term. • Clarifications on injection molding vs. toll manufacturing processes. • Continued focus on food and beverage sector and sustainable packaging demand.
Conclusion • The call concluded with a positive outlook despite mixed results, emphasizing operational efficiency and strategic growth initiatives.
Rajshree Polypack Limited Q1 FY24 Earnings Conference Call Summary
Conference Call Overview • Date: August 18, 2023 • Transcript submitted on: August 24, 2023 • Key Participants: Chairman Ramswaroop Thard, CFO Sunil Sharma
Financial Performance Highlights • Turnover: Rs. 72.69 crores (up 6.4% YoY) • EBITDA: Rs. 8.73 crores (down 19%) • Profit After Tax: Rs. 2.1 crores (down 55%) • Sales Volume: Increased by 16.67% • EBITDA Margins: Declined from 15.8% to 12% • Challenges: Unseasonal rains and lower demand
Future Outlook • Optimism for improved performance during the festive season • Stabilization of raw material prices anticipated • Investments in capacity expansion and sustainable packaging initiatives
New Venture: Olive Ecopack • Focus: Sustainable packaging for quick service restaurants and food delivery • Projected Revenue: Rs. 220-230 crores over 2-3 years • Expected EBITDA Margin: Around 14% • Customer Synergies: 50-60% of existing clients could be potential customers
Concerns Raised by Investors • EBITDA Margin Guidance: Concerns about rising raw material costs • Shareholder Value: Growth not translating into significant profit increases • GST Subsidy: Expected credit of Rs. 1.7-1.8 crores in the next four months
Capacity and Growth Plans • Current Capacity Utilization: 85-90% • Target Revenue for Current Year: Rs. 285 crores • Future Revenue Projections: Rs. 320-330 crores in FY25, Rs. 400 crores in FY25 including Olive Ecopack
Expansion and Investment Insights • Potential for adding capacity within existing factories • Greenfield project consideration without a firm decision • Machinery for new Ecopack project estimated at Rs. 60-70 crores
Conclusion • Focus on both domestic and export markets for growth • Acknowledgment of rising expenses due to interest costs and depreciation • Commitment to provide further details on project break-even points in the future
Rajshree Polypack Limited Q4 FY23 Earnings Conference Call Summary
Financial Performance • Q4 FY23 Results: • Turnover: Rs. 64.83 Crores (25.92% increase YoY) • EBITDA: Rs. 9.32 Crores (45.8% increase) • Profit After Tax: Rs. 2.67 Crores (20.5% increase)
• Full Fiscal Year Results: • Turnover: Rs. 252.19 Crores (27% growth) • EBITDA: Rs. 35.49 Crores • Profit After Tax: Rs. 10.95 Crores (14.66% increase)
Growth Segments • Significant growth in: • Barrier packaging • Injection molding • Capacity enhancements and new product developments highlighted.
Future Revenue Potential • Chairman Ramswaroop Thard indicated: • Potential for an additional 15-20% revenue from existing capacity (~Rs. 300 Crores). • Olive project expected to contribute Rs. 180-200 Crores in sales within 1.5 to 2 years.
Capital Expenditure Plans • Planned CapEx for FY24: Rs. 4 to 5 Crores. • Additional Rs. 10 to 11 Crores allocated for the Olive venture.
Challenges and Concerns • Rising electricity costs impacting manufacturing expenses and margins. • Increased depreciation and interest costs affecting profit margins. • Higher working capital days due to increased inventory levels.
Export Sales and Market Potential • Export sales for 2023: Rs. 13.5 Crores. • Domestic market for barrier packaging valued at Rs. 100-125 Crores.
Joint Venture Insights • Olive Ecopak joint venture total CapEx: Rs. 100-105 Crores, with Rajshree contributing Rs. 20 Crores. • Both Rajshree and its partner to contribute Rs. 20 Crores each to the joint venture.
Revenue Expectations • Revenue from injection molding anticipated to rise from Rs. 4.5 Crores to Rs. 12-15 Crores in FY24. • Target to achieve Rs. 500 Crores in revenue by FY25, requiring additional CapEx of Rs. 30-40 Crores.
Conclusion • Management expressed confidence in growth trajectory driven by new customer additions and product development, while navigating challenges in profitability and growth targets.
Rajshree Polypack Limited Q3 & 9M FY23 Earnings Conference Call Summary
Conference Call Details • Date: February 15, 2023 • Held on: February 10, 2023 • Participants: Management including Chairman & Managing Director Mr. Ramswaroop Thard and CFO Mr. Sunil Sharma
Financial Performance • Q3 FY23 Turnover: ₹53.9 crores (11.86% increase YoY) • 9M Turnover: ₹187.36 crores (27.4% increase) • EBITDA for Q3: ₹7.02 crores (6% increase) • Profit After Tax: ₹1.05 crores (58% decrease due to rising costs)
Company Initiatives • Focus on expanding production capacity • Introduction of seven new products, increasing total to 190
Key Inquiries and Responses • Revenue Drop: Mr. Thard noted a 17% revenue drop attributed to volume and raw material price reductions, but demand remains stable. • Tata Consumer Group's Acquisition of Bisleri: No immediate impact, but potential benefits from enhanced distribution. • Injection Molding Plans: Aim to increase utilization from 35-40% to 60-70% within the year. • New Product Line: Revenues from a new cube analysis product expected next quarter. • Olive Ecopack Initiative: Early stages for order sourcing, relying on joint venture partner for distribution.
Future Projections • Projected Turnover: Expected between ₹255 to ₹260 crores for the year. • Injection Moulding Segment Sales: Estimated annual sales of ₹16 to ₹18 crores in FY24. • Current EBITDA Margin: Approximately 14%, slightly below the target of 15% due to higher electricity costs.
Growth and Debt Management • Barrier Packaging Growth Target: 30-40% increase in this category. • Debt Overview: Long-term debt around ₹20 crores; short-term debt approximately ₹35-37 crores. • Revenue Growth Expectation: Anticipated 10-15% growth next year without additional debt for capital expenditures.
Conclusion • Mr. Thard expressed gratitude for participants' questions, concluding the call.