Release Date: August 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Mayur Uniquoters Ltd (BOM:522249, Financial) reported a consolidated revenue increase of 6% year-on-year for Q1 FY25.
- Profit Before Tax (PBT) and Profit After Tax (PAT) increased by 29% and 22% respectively on a year-on-year basis.
- The company has secured new orders for OEM supplies, particularly in the US and European markets, which are expected to boost sales in the coming years.
- Mayur Uniquoters Ltd is expanding its operations with new facilities in Mexico and Lithuania to cater to international markets.
- The company is actively involved in corporate social responsibility initiatives, including education, healthcare, and environmental sustainability projects.
Negative Points
- The PU plant is currently operating at a loss, impacting overall profitability.
- There are challenges in the domestic footwear market due to government regulations affecting stock levels.
- The company faces issues with import duty manipulation and under-invoicing in the PU segment, affecting its competitiveness.
- The expansion plans in Mexico are subject to political and economic uncertainties due to recent elections and upcoming elections in the US.
- Despite the positive outlook, the company acknowledges that market conditions can fluctuate, which may impact future performance.
Q & A Highlights
Highlights of Mayur Uniquoters Ltd (BOM:522249) Q1 FY25 Earnings Call
Q: Can you please share the volume data for export volume OEM this quarter versus last quarter?
A: We have already informed that volume data will not be discussed in the call. However, export OEM is 21%, and domestic is around 39% to 40% as compared to the last quarter Y-on-Y basis, Q1.
Q: Could you give us a capacity utilization for the PU plant? And what is the outlook for that?
A: PU plant is currently operating at one-fifth capacity. We are working with several big foreign brands and getting a good response. We expect significant improvement within a year.
Q: Have we received any new approvals in this quarter? And what is the progress on our BMW order that was supposed to start in this quarter?
A: The BMW order has already started, and we expect full-fledged orders of 35,000 meters by October or November.
Q: What is the outlook for the domestic auto OEM industry?
A: The Indian domestic OEM industry is progressing rapidly. Mayur Uniquoters supplies to every manufacturer in India, and we expect continued growth.
Q: What is the main reason for margin expansion in this quarter?
A: The margin expansion is due to a mix of export business, specifically OEM, and some domestic supplies. We are also working hard to reduce costs and increase efficiency.
Q: Are we only looking at the domestic market for PU, or are there export opportunities as well?
A: There are good export opportunities. Many brands are manufacturing in India and exporting globally. We are in touch with these brands and supplying materials for their exports.
Q: What would be the CapEx for the Mexico land acquisition and plant setup?
A: The CapEx will be around INR200 crores for both land and plant, with a capacity of around 6 million meters.
Q: Have we incurred any losses in the PU business?
A: Yes, we are currently incurring losses in the PU business.
Q: What is the contribution of the marine business in our total export mix?
A: The marine business falls under export general and is gradually increasing. It was negligible until now but is showing consistent growth.
Q: Are we on track to achieve the 3x export target by FY26?
A: We expect export OEM growth to be at least 15% more this year compared to last year, and another 15% to 20% in the next year. We are confident in achieving our targets based on current orders.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
