Shankara Building Products concall was today at 11:30 AM π
Here are the Key takeaways from the earning call ππ§΅
Here are the Key takeaways from the earning call ππ§΅
Business Updates:
β’ Q3 has seen uptick in the demand and co. is at its 80% of the pre-covid sales.
β’ There has been pick up in all the segment.
β’ Affordable Housing Segment has seen growth in the driver of business.
β’ Q3 has seen uptick in the demand and co. is at its 80% of the pre-covid sales.
β’ There has been pick up in all the segment.
β’ Affordable Housing Segment has seen growth in the driver of business.
Segments
β’ Retail sector has seen 14% of the revenue growth. Revenue contribution 60%.
β’ Company has decreased the number of stores, as co. believes that they can work more efficiently with less number of stores.
β’ Avg ticket size of the company has been increased. (See image)
β’ Retail sector has seen 14% of the revenue growth. Revenue contribution 60%.
β’ Company has decreased the number of stores, as co. believes that they can work more efficiently with less number of stores.
β’ Avg ticket size of the company has been increased. (See image)
β’ Inventory gain: Approx around 10 crores
β’ Same store sales growth on YoY basis is negative, while from past quarter it positive. Mgmt expects more clarity after the end of the year.
β’ Shankara being in retail segment the growth in infra doesn't really benefited company.
β’ Same store sales growth on YoY basis is negative, while from past quarter it positive. Mgmt expects more clarity after the end of the year.
β’ Shankara being in retail segment the growth in infra doesn't really benefited company.
β’ Mgmt expect growth in Q4, as retail till now has not benefited
Credit Policy:
β’ Company has tightened the credit policy, based on the budget of the company
Store closure:
β’ Almost all the store closure has been done, there would be couple of stores which are left to close.
Credit Policy:
β’ Company has tightened the credit policy, based on the budget of the company
Store closure:
β’ Almost all the store closure has been done, there would be couple of stores which are left to close.
Footfalls:
β’ Footfalls has been low, however conversion is very high as co. is not getting majorly serious customer only.
Growth- With current base, company is looking for growth of about 20-25% over next few year.
β’ Footfalls has been low, however conversion is very high as co. is not getting majorly serious customer only.
Growth- With current base, company is looking for growth of about 20-25% over next few year.
Growth with respect of real estate
β’ Co. sees over 3 types of sales
- New homes- Company caters to new building which are going to build up
- Constructor- Connecting to constructor where trust is important, hence this segment take time.
Hence pipeline generation should be strong
β’ Co. sees over 3 types of sales
- New homes- Company caters to new building which are going to build up
- Constructor- Connecting to constructor where trust is important, hence this segment take time.
Hence pipeline generation should be strong
- Upgradation- Customer who are refurbishing the housing for luxury homes.
Shankara has major focus on 1&2
Working Capital
β’ Creditor in Q1 was decreased, however this quarter creditor has increased from 30cr to 75cr.
β’ Net WC days remained at 62 days, making CFO of 101cr.
Shankara has major focus on 1&2
Working Capital
β’ Creditor in Q1 was decreased, however this quarter creditor has increased from 30cr to 75cr.
β’ Net WC days remained at 62 days, making CFO of 101cr.
Store closure:
β’ Thought process was pre-covid only.
β’ Growth and the profitability were the reason for the closure of stores.
β’ Nearby stores of recent closure store is also generating the sales of closed store. Hence per store profitability increased.
β’ Thought process was pre-covid only.
β’ Growth and the profitability were the reason for the closure of stores.
β’ Nearby stores of recent closure store is also generating the sales of closed store. Hence per store profitability increased.
CAPEX:
β’ Augmenting the warehousing, hence this would be nominal only.
β’ Share of steel over 4 year should come down to 60% while non share steel may rise.
β’ Augmenting the warehousing, hence this would be nominal only.
β’ Share of steel over 4 year should come down to 60% while non share steel may rise.
β’ β’ β’
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