PG Electroplast Ltd conducted their Q3 FY23 earnings conference call on 6th February 2023
Here are the key highlights ππ»ππ»ππ»
Here are the key highlights ππ»ππ»ππ»
β’ Overview:
- Order book for product business remains robust, and Co. is on track to scale the product business significantly in FY β23 and FY β24
- Demand for PG Electroplast products continues to be strong, especially for items like LED TVs, set-top boxes, and ACs
- Order book for product business remains robust, and Co. is on track to scale the product business significantly in FY β23 and FY β24
- Demand for PG Electroplast products continues to be strong, especially for items like LED TVs, set-top boxes, and ACs
β Co. is exploring opportunities to expand product portfolio, including possibility of entering into EV charging infrastructure space
- Global supply chain disruptions & inflationary pressures have impacted operations, but necessary steps were taken to manage these challenges
- Global supply chain disruptions & inflationary pressures have impacted operations, but necessary steps were taken to manage these challenges
β Revenue growth was driven by strong demand from customers, particularly in the consumer electronics and home appliances segments
- Revenue mix was led by LED TVs, followed by set-top boxes and ACs
- Revenue mix was led by LED TVs, followed by set-top boxes and ACs
β Global semiconductor shortage has affected availability & pricing of components, but co. is working closely with suppliers to mitigate impact
- Co. board approved acquisition of 51% stake in a new company that will provide end-to-end solutions for EV charging infrastructure
- Co. board approved acquisition of 51% stake in a new company that will provide end-to-end solutions for EV charging infrastructure
β’ Capacity:
- This yearβs capacity expansion projects have already concluded and begun mass production
- Capex guidance for FY β23 is being maintained in the range of INR135 crores to INR140 crores
- This yearβs capacity expansion projects have already concluded and begun mass production
- Capex guidance for FY β23 is being maintained in the range of INR135 crores to INR140 crores
β Co. has already doubled its washing machine, air cooler capacities while also further expanded room AC capacity to 200,000 indoor units per month, and 100,000 outdoor units per month
β Co. board approved an investment of INR 60 crores to set up a new manufacturing facility in Telangana to produce plastic injection molding components
β’ Financials:
- Operating margins have improved due to cost control & due to lower commodity prices & operating leverage, which affected AC business especially
- Increase in working capital has happened largely because co. pulled up some of the inventory for strong AC season
- Operating margins have improved due to cost control & due to lower commodity prices & operating leverage, which affected AC business especially
- Increase in working capital has happened largely because co. pulled up some of the inventory for strong AC season
β Debt increase has largely been on account of working capital debt
- Co. net debt as of December 31, 2022, stood at INR 110.6 crores
- Co. net debt as of December 31, 2022, stood at INR 110.6 crores
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