Orient Bell conducted the conference call for Q3 FY22.
Here are the conference call highlights
๐งต๐
Here are the conference call highlights
๐งต๐
Business Updates:
โข With proper execution, co. was able to pass on 100% of the increasing cost to customer.
โข Topline growth, margin improvement & focus on cash flows helps Orient grow in the market.
โข Market spend increase 30% QoQ, with intent to increase in brand market.
โข With proper execution, co. was able to pass on 100% of the increasing cost to customer.
โข Topline growth, margin improvement & focus on cash flows helps Orient grow in the market.
โข Market spend increase 30% QoQ, with intent to increase in brand market.
Industry:
โข Fundamentals of Real Estate co. are getting strong & better, leading to increase in demand.
โข Short term uncertainty will remain due to pandemic.
โข More demand is coming from Tier 2 & tier 3 cities with respect to tier 1 (esp. Tier 3).
โข Fundamentals of Real Estate co. are getting strong & better, leading to increase in demand.
โข Short term uncertainty will remain due to pandemic.
โข More demand is coming from Tier 2 & tier 3 cities with respect to tier 1 (esp. Tier 3).
Project Business:
โข In Q3, project business contributed 21% of revenue.
โข Segment reported 4.5% lower YoY basis.
โข However in Q3, prices were very volatile, while in project business prices has to be fixed, for which co. decided to gets slow down.
โข Now segment will pick up.
โข In Q3, project business contributed 21% of revenue.
โข Segment reported 4.5% lower YoY basis.
โข However in Q3, prices were very volatile, while in project business prices has to be fixed, for which co. decided to gets slow down.
โข Now segment will pick up.
Revenue Mix:
โข 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.
โข 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:
โข Energy & other input cost continuous to remain elevated.
Average Gas Price
- Sikandrabad: 43Rs
- Bangalore: 50Rs
- Dora: With subsidized price, gas price was much lower.
โข Containers & freight rate are up by 8-10x with respect to last year.
โข Energy & other input cost continuous to remain elevated.
Average Gas Price
- Sikandrabad: 43Rs
- Bangalore: 50Rs
- Dora: With subsidized price, gas price was much lower.
โข Containers & freight rate are up by 8-10x with respect to last year.
Margins:
โข Mgmt is focused enough to maintain the margins and to improve over this edge.
โข Export market currently is insignificant.
โข Volume increase by 6% YoY, while ASP grew by 17%.
โข Mgmt is focused enough to maintain the margins and to improve over this edge.
โข Export market currently is insignificant.
โข Volume increase by 6% YoY, while ASP grew by 17%.
Addition.
โข Added 112 more channel partner in Q3.
โข Added 1400 SKU, with contributed to 1/3 of the revenue.
โข 27 net OBTBโs added. Total Active Count is now 276.
โข With these capacity, co. can work on topline of 1000-1100 cr on revenue
โข CAPEX: 42 cr from internal accrual.
โข Added 112 more channel partner in Q3.
โข Added 1400 SKU, with contributed to 1/3 of the revenue.
โข 27 net OBTBโs added. Total Active Count is now 276.
โข With these capacity, co. can work on topline of 1000-1100 cr on revenue
โข CAPEX: 42 cr from internal accrual.
Capacity Addition:
โข Capacity Utilization: 91%
โข 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.
โข Capacity Utilization: 91%
โข 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:
โข Cash Conversion cycle continues to be < 20 days.
โข Net Cash: 21cr as on Dec 2021.
โข Marketing Spend is on digital media only. Focus remain on popularizing tools & also have commercial marketing for products.
โข Cash Conversion cycle continues to be < 20 days.
โข Net Cash: 21cr as on Dec 2021.
โข Marketing Spend is on digital media only. Focus remain on popularizing tools & also have commercial marketing for products.
Loading suggestions...