🏍 Key highlights from the concall of SJS Enterprises🚗
CMP - ₹647
Like and retweet for maximum reach!!🧵
CMP - ₹647
Like and retweet for maximum reach!!🧵
🏍The company successfully completed its acquisition of Walter Pack India with the key objectives to add new customers, acquire emerging technology, crossing to existing customers, expand manufacturing capabilities and management bandwidth.
🏍This will also help them penetrate deeper in passenger vehicles & home appliances and reduce their dependence in the 2 wheeler segment.
🏍The exports of SJS enterprise grew by 90% YoY. This increase in exports is mainly due to the strong growth in PV segment, consumer segment and winning new business with existing customers in South America & Kenya.
🏍Currently the total exports contribute to 10% of revenue and they intend to increase exports in North America and Europe in coming years.
🏍They have added 2 new marquee customers that are Toyota Tsusho and Autoliv. Autoliv is a world leader in automotive safety systems for which they have bagged a large order for IML parts.
🏍The contribution from the new products in the revenue was 10% and they will continue to develop new premium products and technology that are complex to manufacture which will help to increase market share & be a preferred supplier to most customers
🏍They have achieved this growth due to premiumization such as chrome plated parts from Exotech, IML/IMT/IMF parts through WPI and they are also working on new age products like optical plastics.
🏍The company expects an organic growth of 20-25% for FY24 to FY26. And also 90% of their current orderbook will be executed this year
🏍Capex of ₹34-35 Cr will be incurred this year. They have allocated ₹10-12 Cr in SJS, ₹10-12 Cr in Exotech and ₹10 Cr in Walter Pack India.
🏍Capex of ₹34-35 Cr will be incurred this year. They have allocated ₹10-12 Cr in SJS, ₹10-12 Cr in Exotech and ₹10 Cr in Walter Pack India.
🏍To align more evolving business and accommodate changing demands of both subsidiaries, they have decided to defer the expansion plan of Exotech for chrome plating to the calendar year 2024 and production for these parts will be outsourced.
🏍During the quarter, they Increased underutilised capacity in painting in Exotech and bagged a large order for painting from PV OEMs.
🏍Exotech will continue to provide 14-15% sustainable margins. There was a fall in margins during the quarter due to fall in demand of farm equipment which affected John Deere, a major client.
🏍Walter Pack India had revenue of ₹35.6 Cr in the Quarter and EBITDA of 31.5%. The company has 2 plants running at capacity utilisation of 75% and 65%. The guidance for growth is around 21% YoY for FY24.
Since WPI didn’t have a lot of 2W customers, SJS can now cross sell its own customers.
Loading suggestions...