JK Tyre concall was today at 1:30 pm for Q1 FY21
"Guidelines for sales growth for next 5 year stays at 12-13%"
Here are conference call highlights 😀
"Guidelines for sales growth for next 5 year stays at 12-13%"
Here are conference call highlights 😀
Business Updates:
• Partnered with Kia mobility solution.
• Also entered with partnership JBMA.
• Co. is taking price increase across the segment, due to increase in price of raw material.
• Recent Auto sales in July has been improved with demand coming from rural region.
• Partnered with Kia mobility solution.
• Also entered with partnership JBMA.
• Co. is taking price increase across the segment, due to increase in price of raw material.
• Recent Auto sales in July has been improved with demand coming from rural region.
• Capacity Utilization was- 80%
• Export sales this quarter 476 cr (36% QoQ growth)
• Margin god impact due to steep rise in price of raw material. For which certain price is passed on to customer.
• Price hike of 5% will be taken this quarter.
• Export sales this quarter 476 cr (36% QoQ growth)
• Margin god impact due to steep rise in price of raw material. For which certain price is passed on to customer.
• Price hike of 5% will be taken this quarter.
Cavendish:
• Cavendish recorded sales growth of 112% with highest ever revenues of 2571cr & EBITDA of 398cr.
• Lower margin in Cavendish resulted to increase in Raw material price, where for replacement co. was not able pass on the price treo the customer.
• Cavendish recorded sales growth of 112% with highest ever revenues of 2571cr & EBITDA of 398cr.
• Lower margin in Cavendish resulted to increase in Raw material price, where for replacement co. was not able pass on the price treo the customer.
Replacement Industry:
• Replacement Industry was the key growth driver.
• Price of replacement is slightly lower than that of OEM sales, but the delta spread between both the price is shrinking slowly.
• Replacement Industry was the key growth driver.
• Price of replacement is slightly lower than that of OEM sales, but the delta spread between both the price is shrinking slowly.
Growth Target:
• As per reports, Indian Tyre industry is expected to grow at around 12% for the coming 3-5 years and mgmt expect to maintain its market share in the industry.
• As per reports, Indian Tyre industry is expected to grow at around 12% for the coming 3-5 years and mgmt expect to maintain its market share in the industry.
Export:
• Current share of revenue of export is difficult to manage, as company will look for sales demand.
• Eventually domestic sales may rise more than export.
• Current share of revenue of export is difficult to manage, as company will look for sales demand.
• Eventually domestic sales may rise more than export.
Import:
• As per government policy, only tyres which are not produced in India, can be imported from China, with anti-dumping duties and import ban levied on other product.
• As per government policy, only tyres which are not produced in India, can be imported from China, with anti-dumping duties and import ban levied on other product.
CAPEX:
• All CAPEX project are on line.
• Currently plan is to reduce the debt, while as in when co. will plan CAPEX there would again looking for debt.
• Co. expect next set of CAPEX to be in OTR range of products.
• All CAPEX project are on line.
• Currently plan is to reduce the debt, while as in when co. will plan CAPEX there would again looking for debt.
• Co. expect next set of CAPEX to be in OTR range of products.
China:
• China lead the market because of large scale companies and the government policy which they receive in terms of subsidy.
• Indian market is also scoping up well with increasing export market and increasing sales and increasing support from government intervention.
• China lead the market because of large scale companies and the government policy which they receive in terms of subsidy.
• Indian market is also scoping up well with increasing export market and increasing sales and increasing support from government intervention.
Other Data:
• Debt reduction target is around 45%
• 6,000+ Dealers
• 500 Distributors
• Capacity increase from CAPEX would be around 10-15%.
• Co. expect no increase in working capital.
• Debt reduction target is around 45%
• 6,000+ Dealers
• 500 Distributors
• Capacity increase from CAPEX would be around 10-15%.
• Co. expect no increase in working capital.
• • •
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