Orient Bell conducted the conference call for Q3 FY22.
Here are the conference call highlights
🧵👇
Here are the conference call highlights
🧵👇
Business Updates:
• With proper execution, co. was able to pass on 100% of the increasing cost to customer.
• Topline growth, margin improvement & focus on cash flows helps Orient grow in the market.
• Market spend increase 30% QoQ, with intent to increase in brand market.
• With proper execution, co. was able to pass on 100% of the increasing cost to customer.
• Topline growth, margin improvement & focus on cash flows helps Orient grow in the market.
• Market spend increase 30% QoQ, with intent to increase in brand market.
Industry:
• Fundamentals of Real Estate co. are getting strong & better, leading to increase in demand.
• Short term uncertainty will remain due to pandemic.
• More demand is coming from Tier 2 & tier 3 cities with respect to tier 1 (esp. Tier 3).
• Fundamentals of Real Estate co. are getting strong & better, leading to increase in demand.
• Short term uncertainty will remain due to pandemic.
• More demand is coming from Tier 2 & tier 3 cities with respect to tier 1 (esp. Tier 3).
Project Business:
• In Q3, project business contributed 21% of revenue.
• Segment reported 4.5% lower YoY basis.
• However in Q3, prices were very volatile, while in project business prices has to be fixed, for which co. decided to gets slow down.
• Now segment will pick up.
• In Q3, project business contributed 21% of revenue.
• Segment reported 4.5% lower YoY basis.
• However in Q3, prices were very volatile, while in project business prices has to be fixed, for which co. decided to gets slow down.
• Now segment will pick up.
Revenue Mix:
• North-East contributes 70% of sales & 30% from South-West.
Price Hike:
- 3-5% price rise in April, September & November.
- Traded product increased by 6-8% in Sep, Oct & November.
- No price hike take in Jan, but with increase in cost there would be price hike.
• North-East contributes 70% of sales & 30% from South-West.
Price Hike:
- 3-5% price rise in April, September & November.
- Traded product increased by 6-8% in Sep, Oct & November.
- No price hike take in Jan, but with increase in cost there would be price hike.
Raw Material:
• Energy & other input cost continuous to remain elevated.
Average Gas Price
- Sikandrabad: 43Rs
- Bangalore: 50Rs
- Dora: With subsidized price, gas price was much lower.
• Containers & freight rate are up by 8-10x with respect to last year.
• Energy & other input cost continuous to remain elevated.
Average Gas Price
- Sikandrabad: 43Rs
- Bangalore: 50Rs
- Dora: With subsidized price, gas price was much lower.
• Containers & freight rate are up by 8-10x with respect to last year.
Margins:
• Mgmt is focused enough to maintain the margins and to improve over this edge.
• Export market currently is insignificant.
• Volume increase by 6% YoY, while ASP grew by 17%.
• Mgmt is focused enough to maintain the margins and to improve over this edge.
• Export market currently is insignificant.
• Volume increase by 6% YoY, while ASP grew by 17%.
Addition.
• Added 112 more channel partner in Q3.
• Added 1400 SKU, with contributed to 1/3 of the revenue.
• 27 net OBTB’s added. Total Active Count is now 276.
• With these capacity, co. can work on topline of 1000-1100 cr on revenue
• CAPEX: 42 cr from internal accrual.
• Added 112 more channel partner in Q3.
• Added 1400 SKU, with contributed to 1/3 of the revenue.
• 27 net OBTB’s added. Total Active Count is now 276.
• With these capacity, co. can work on topline of 1000-1100 cr on revenue
• CAPEX: 42 cr from internal accrual.
Capacity Addition:
• Capacity Utilization: 91%
• Modernization of MP-1 Wall plant (adding 0.7 MSM capacity p.a.) completed within Q3FY22.
3 scale underway
- De-bottlenecking at Sinkandrabad adding 0.7 Million capacity.
- 2 new CAPEX in South Indian market.
• Capacity Utilization: 91%
• Modernization of MP-1 Wall plant (adding 0.7 MSM capacity p.a.) completed within Q3FY22.
3 scale underway
- De-bottlenecking at Sinkandrabad adding 0.7 Million capacity.
- 2 new CAPEX in South Indian market.
Other:
• Cash Conversion cycle continues to be < 20 days.
• Net Cash: 21cr as on Dec 2021.
• Marketing Spend is on digital media only. Focus remain on popularizing tools & also have commercial marketing for products.
• Cash Conversion cycle continues to be < 20 days.
• Net Cash: 21cr as on Dec 2021.
• Marketing Spend is on digital media only. Focus remain on popularizing tools & also have commercial marketing for products.
• • •
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