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Meeting Overview • Date: August 9, 2024 • Compliance: Submitted transcript to BSE and NSE • Focus: Un-audited financial results for Q1 FY 2025
Financial Highlights • Revenue Growth: 42% quarter-on-quarter to ₹42,670 million • EBITDA Increase: 8.23% • CEO Emphasis: Strategic initiatives on product portfolio and distribution network • CFO Notes: Improvements in working capital and reaffirmed CRISIL ratings
Key Discussions • Revenue Drivers: Growth primarily from existing businesses, not new brands • Major Projects: NMDC data center order (₹200-300 crore) and Tamil Nadu education project • Margin Insights: Project margins lower than core business; ROI influenced by inventory management • Credit Rating: Recent upgrade to A+ with limited immediate impact on interest rates
Business Operations • Client Agreements: Typically last 1-5 years; strong retention rate • Gross Margin Stability: Around 5% across business verticals • Capital Metrics: ROCE and ROE improvements expected post-capital raise • Branch Expansion: Plans for new branches based on market analysis
Risk Management • Client Concentration: No single client accounts for over 10% of revenue • Inventory Management: Strategies to reduce inventory days by 10%
Future Growth Prospects • CAGR: Strong growth of 20-23% over the past two decades • Digitization Focus: Growth driven by new product categories (data centers, semiconductors) • Foreign Exchange Risks: Managed through pricing strategies and hedging
Strategic Insights • Brand Dependency: Strong distribution network and long-term brand relationships • AI Integration: Growing incorporation of AI in products with future business optimism • Market Trends: Double-digit growth in most product categories; cautious approach to mobile distribution
Conclusion • Confidence expressed in the company's vision and growth trajectory by CEO Rajesh Goenka.
Submission Details • Date of submission: May 30, 2024 • Meeting date: May 24, 2024 • Compliance: SEBI's Listing Regulations • Document signed by: Hinal Tejas Shah
Financial Performance Highlights • Q4 FY2024 Growth: • Revenue growth: 33% • Full fiscal year growth: 17.3% • Earnings Metrics: • EPS growth: 5-6% • EBITDA increase: 28.8% • PAT increase: 96.9% • Credit Rating: Upgraded to A+ by Crisil
Strategic Initiatives • Market Expansion: • Plans to enter new verticals: embedded systems, visual displays • Targeting expansion to 100 cities • Sustainability Efforts: Commitment to e-waste collection initiatives • New Partnerships: Significant order from NMDC Data Center
Operational Insights • Inventory Management: • Average inventory days: 54-55 (target: 45-50) • Focus on reducing inventory levels • Operating Expenses: Increased due to higher advertising costs and forex losses
Market Opportunities • Growth in Non-Metro Areas: Currently in 51 cities, covering over 700 towns • Emerging Markets: Surveillance and visual display sectors • Data Center Sector: Significant order of ₹1500 crore expected to execute in FY25
Management Q&A Highlights • Debt Levels: Current debt in the 600s range • Market Strategy: Focus on expanding existing business and new initiatives • AI Integration: Expected increase in average selling prices (ASPs) with stable margins • Forex Management: Mitigation strategies in place for currency fluctuations
Future Outlook • Digital Economy Growth: Optimism about opportunities in India's expanding digital landscape • AI Cloud Data Centers: Initial installations underway with competitive landscape noted
This summary encapsulates the key points discussed during the Analysts/Investors Meet for Rashi Peripherals Limited, focusing on financial performance, strategic initiatives, operational insights, market opportunities, and future outlook.
Meeting Overview • Date: March 4, 2024 • Focus: Unaudited financial results for Q3 FY24 and nine months ending December 31, 2023 • Key Management Present: • Kapal Pansari (Managing Director) • Rajesh Goenka (CEO) • Himanshu Shah (CFO)
Company Growth and Performance • Growth Trajectory: • 23% CAGR over the past 20 years • Distribution network across 50 cities in India • Product Range: • Represents over 52 global brands • Offers products from low-cost items to high-end AI machines • Business Verticals: • Lifestyle and IT Essentials • Personal Computing, Enterprise & Cloud Solutions
Financial Highlights • Q3 Performance: • 21% year-over-year revenue increase • 12% growth over nine months • CFO Insights: • 21% quarter-on-quarter growth in operating revenue for Q3'23 • EBITDA rose by 3.35%, PAT declined by 11.26% • Standalone results: 17% increase in operating revenue quarter-on-quarter
Strategic Focus • Growth Drivers: • Balanced approach of organic and inorganic growth • Expansion into new products and increased distribution coverage • Market Conditions: • Acknowledgment of lower IT demand in the Eastern region • Focus on operational efficiencies for future growth
Financial Management • Debt Repayment: • Rs. 326 crores repaid, saving Rs. 25 crores annually in interest • Margin Stability: • Expected EBITDA margins to stabilize around 2.5% to 2.7% • Business model relies on working capital and credit for rapid inventory turnover
Risk Management • FOREX Exposure: • 40% of revenue is dollar-based, with a natural hedging strategy in place • Customer Segments: • Operates as a B2B distributor, no direct sales to end customers
Subsidiaries and E-Waste Initiatives • Subsidiaries: • Two subsidiaries: one in Singapore and another in Jaipur • Minimal financial contributions from subsidiaries • E-Waste Initiatives: • Focus on environmental awareness, no revenue model for e-waste collection
Future Outlook • Market Growth: • Anticipated growth in non-metro regions • Optimism about recovery in demand for PCs and IT products • Management Changes: • Announcement of resignation of an independent director
Conclusion • Management expressed gratitude for participant engagement and reiterated commitment to improving performance and sustaining growth.