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Sejal Glass Limited Q4 FY24 Earnings Conference Call Summary
Conference Call Details • Date: May 20, 2024 • Participants: Amrut Gada (Promoter), Chandresh Rambhia (CFO) • Date of Call: May 13, 2024
Financial Performance • Q4 FY24 Results: • Consolidated income: Rs. 50.22 crores • EBITDA: Rs. 5.85 crores • Profit before tax: Rs. 0.5 crores • FY24 Results: • Total consolidated income: Rs. 164.73 crores • Year-over-year growth: 253.47% • Revenue Sources: • 63.66% from international markets
Operational Highlights • Order Book: • UAE: 60 million AED • India: 30 crore INR • EBITDA Margin Goals: • UAE: Increase from 14-15% to 15.5-17% • Current Receivables: 40-45% of sales, aiming to reduce to 90 days next year
Strategic Insights • Market Expansion: • Targeting 10% market share in the UAE • Exploring diversification into defense-grade glass products • CAPEX Plans: • Minimal CAPEX for minor adjustments, no significant new investments • Product Portfolio Strategy: • 30-35% commodity products • 30-35% medium-margin products • 20-25% niche products (bulletproof, fireproof glass)
Capacity and Growth Projections • Capacity Utilization: • India: 67-68% • Dubai: 34%, expected to rise above 50% • Revenue Projections: • India: Rs. 92 crores • Dubai: AED 80-90 million • Future Growth: • Projected 15% growth driven by UAE and Indian operations
Governance and Management Changes • Director Status Change: • Mr. Vijay Mamaniaji transitioned to Non-Independent Director • Collaboration with Aarti Group: Ongoing support for governance and operations
Financial Insights • Total Borrowings: Approximately Rs. 140 crores • Working Capital: Rs. 15 crores • EBITDA Margin Expectations: • India: Expected to improve from 12-13% as capacity utilization increases • Future Turnover Targets: • FY 2024-25: ₹275-280 crores • Full capacity: ₹350 crores with potential EBITDA margins rising to 18%
Market Dynamics and Future Plans • Automotive Sector: Preparing for opportunities with updates expected next quarter • Market Survey: Focus on architectural glass, no immediate plans for solar or float glass • Invitation for Inquiries: Open for further questions via email
This summary encapsulates the key points discussed during the Sejal Glass Limited Q4 FY24 Earnings Conference Call, highlighting financial performance, operational strategies, and future growth plans.
Sejal Glass Limited Earnings Conference Call Summary
Date and Purpose • Date: February 27, 2024 • Purpose: Discuss operational and financial performance for Q3 FY24 (ending December 31, 2023)
Key Participants • Mr. Amrut Gada: Promoter • Mr. Chandresh Rambhia: Chief Financial Officer • Ms. Vaishnavi Ambokar: Moderator from Kirin Advisors
Financial Highlights • Q3 FY24 Performance: • Total Income: Rs. 47.39 crores (305.91% YoY increase) • EBITDA: Rs. 6.19 crores (464.08% increase) • Net Profit: Rs. 1.02 crores (162.03% increase) • First Nine Months FY24: • Total Income: Rs. 114.56 crores (233.49% increase) • Net Profit: Rs. 2.66 crores
Management Insights • Commitment to quality and customer satisfaction driving success in domestic and international markets. • Ownership structure: Aarti Group retains 80% stake; acquisition of UAE subsidiary in progress.
Operational Metrics • EBITDA Margins: • India: ~11% • UAE: ~14% • Comparison with competitor ASAHI Glass (23%-30% margins) discussed. • Focus on architectural glass rather than automotive glass.
Future Projections • Q4 Revenue Projection: Rs. 55-60 crores • FY25 Revenue Projection: • India: Rs. 80-85 crores • UAE: Rs. 200-225 crores • Target EBITDA margin: 15-16% with minimal additional capital expenditure.
Capacity and Market Strategy • Significant production capabilities in India and UAE. • Focus on architectural glass; no immediate plans to diversify into solar glass. • Targeting Rs. 65-63 crores in India and Rs. 100 crores in Dubai for the current year.
Historical Performance and Challenges • Market leadership from 2001 to 2011 with 18% market share. • Challenges faced in 2014-15, including working capital issues and price competition. • Commitment to social responsibility highlighted.
Risk Management and Investor Insights • Ongoing demand for glass with no viable replacements. • Confidence in growth and risk mitigation strategies discussed.
Conclusion • The call concluded with an invitation for further inquiries, emphasizing the company's optimistic outlook for future growth and margin improvements.