Tatva chintan ๐งชโ๏ธโ๏ธ concall happened yesterday.
My key takeaways:
1. Margin compression in this quarter was a perfect storm.
In b/w the lines: transportation costs went up 2.5% of sales, power costs went up 2% of sales. SDA sales were muted due to semicon shortage.
My key takeaways:
1. Margin compression in this quarter was a perfect storm.
In b/w the lines: transportation costs went up 2.5% of sales, power costs went up 2% of sales. SDA sales were muted due to semicon shortage.
Despite all of this the operating margin was 23%. Towards lower end of their 23-27% guidance. Semicon shortage expected to ease from may. So sda sales should pick up in Q1fy23. q4 will be muted as well. Gross margins have expanded to 57% from 55% last quarter.
2. Super capacitor Electrolyte salt sales are now 2% of the product mix.
In b/w lines: The conservative guidance is of 5-7% of sales mix 4 years from now. The upside is absolutely huge though. These super capacitors are needed to store solar & wind energy. The upside is massive
In b/w lines: The conservative guidance is of 5-7% of sales mix 4 years from now. The upside is absolutely huge though. These super capacitors are needed to store solar & wind energy. The upside is massive
Another application here is into EV where super capacitors improve the range per change for EV & also the battery life. Already started commercial supply for 1 client. Working with others.
3. Already succeeded a one continuous flow chemistry agro chem intermediate. Commercialization in 18 months.
In b/w lines : we got to know that serendipity led to this application succeeding far ahead of original estimates of 3 years to commercialization. These continuous flow chemistry products will have much higher margins & lead to greener chemistry. In fact this is another thing..
That we learned about their operating style. That they want to focus on products which make environmental sense. Not any random products. Now have 5 PhDs. Pre ipo only had 1.
4. Aspirations to be 1000cr in 3-4 years time.
In b/w lines: Dahej facility which is in an SEZ will start operation in nov-22 & is on track. Asset turns of 3 (same as now).
Already bought land for next facility. Will be ready in 3 years for next leg of growth.
In b/w lines: Dahej facility which is in an SEZ will start operation in nov-22 & is on track. Asset turns of 3 (same as now).
Already bought land for next facility. Will be ready in 3 years for next leg of growth.
Loading suggestions...