Fineotex Chemical conducted the conference call for Q3: FY22 yesterday.
"Mgmt focus on foraying the un-tap market and bring on new customer."
Here are the concall highlights
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Business Updates:
• Ambernath facility was operational in Nov.
• Domestic chemical sector is expected to show growth for FY22 due to govt. boost and increase in chemical prices.
• QoQ Volume growth has been 65% on YoY basis.
• Top 10 product contirbutes 20% of revenue
Industry:
• Textile sector is showing good growth in terms of export and domestic demand as well.
• China market is more in the commodity market, while China focuses less in the small niche market due to higher capacity, hence there is not much competition from China.
Ambernath:
• Facility has came up at the right time, as the textile sector witnessed major growth in 2020 and the facility is available just at the cusp of growth.
• This facility has capacity to double the turnover.
• With 8 times tunrover revenue can touch till 350cr.
Future Growth:
• Mgmt expect current growth rate to remain achievable in near future.
• Mgmt focuses now on finishing textile & technical textile, where need of chemical is high and growth is huge.
• Asset Turn ballpark in Ambernath facility: 8 times
Margin:
Previously margin was at 18%, because lower utilization, co. focus was getting the certificates for manufacturing, bringing on new customer, expanding product basket.
As base of co. increases margins will be increased. Mgmt expect current margins to be sustainable.
FCL unique spot:
• As mgmt said, as they are manufacturing niche product, big chemical cos are ready to pay price bit higher than actual cost of production with respect to hassle for manufacturing such specialty chemicals.
Product Price & Raw Material:
• RM is quite diversified and top 10 RM not contribute more than 20-25% of the RM cost.
• Product mix and price increase has result in increase in margin. While certain product being specialty chemical will remain at same margins level.
Growth:
• Mgmt claims to have attend all the events and seminars happens all over the world to place its product, which is expanding their global footprint.
• Capacity utilization except for Ambernath is ~70%.
Competition:
FCL competitors are present in European market such as Huntsman, Archroma, Rudolf. While domestic competitor is Pidilite in some area, Rossari Biotech is near competitor which has 90% similar product.
Product mix helps increasing market share of the company.
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Kajaria Ceramics conducted the conference call for Q3: FY22
"Guidance for 15% volume growth & with price rise Revenue growth target of 20-22% for FY23"
Here are the conference call highlights.
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Business Updates:
• Tiles market has moved up well, with growth coming in all the region, while re-modeling & re-construction market is picking up in urban metros.
• Rising Gas cost & pre-payment mechanism impacting business in Gujarat.
• Power & Fuel cost increased by 92cr.
Industry Updates:
• Lots of turmoil going in the industry due to rise in gas price & implementation of NGO's
• Exports have gone down from 1100 to 550cr due to container problem.
• Container prices are going to the roof.
• However on demand side, worst time is over.
Shakti Pumps conducted the conference call for Q2: FY22
"With KUSUM mgmt guides to grow at 30-35% YoY in coming year
Here are the conference call highlights.
Business Updates:
• KUSUM 2 sales has been started and will be seen in Q4.
• Received order book of 100cr in Jan first week.
• With increase in EPC product mix, margins impacted a bit.
• Mgmt expect the Raw Material prices to reduce further.
• Capacity Utilization: 40%
KUSUM:
• Total Market of KUSUM 2: 3,17,000
- Addressable Market: 1,50,000
• Shakti Pump is already present in 22 states, being leader in states such as Haryana, Rajashthan, MP, Maharashtra
• Price Hike done in KUSUM 2: 3-4%.
• Bank Guarantee of 3% has to be given.
Ramkrishna Forgings conducted the conference call for Q3 FY22 yestarday
Here are the key concall highlights:
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Business Update:
• Received contracts worth Rs 220cr from 6 contracts across various geographies & business verticals
• New business acquisition in Front Axle Beams
• Open new offices in SA, Russia & 2 in Europe, with focus to increase exports
• Previous order are fulfilled.
• Within next year, mgmt target that all the unit of RFL will 4.0 compliant, which will ensure increase in plant efficiency & increasing margins.
• Mgmt expect current margins to be sustainable for new few quarter.
• Mgmt target to net debt free by FY25.