Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or future fundraising through debt or equity in the provided transcript. The company is investing in CAPEX with planned investments of around Rs. 30-35 crores for the current financial year, which appears to be funded through internal accruals or existing financial resources. No indications or discussions about raising funds via debt or equity markets were noted. Management highlighted focusing on operational efficiency and organic growth rather than external capital raising. Any future investments depend on market conditions, but no concrete plans f

Any current/future capex/capital investment/strategic investment?

The company plans to invest around Rs.120 crores in the next two years, nearly doubling its gross block from Rs.80 crores. For the current financial year (FY24), planned CAPEX is Rs.30-35 crores, with Rs.10 crores already invested in H1 and Rs.20-25 crores planned for the remaining year. This CAPEX is aimed at replacing old assets and creating a platform to achieve the Rs.1,000 crore turnover target by FY28. Expansion includes product categories like garmenting, synthetic glass, and shoes, along with improving capacity utilization and productivity. Post-FY24, CAPEX is expected to slow

Future growth expectations in sales/revenue/volumes?

The company targets a 15% CAGR growth in revenue going forward. They aim to achieve Rs.1,000 crore turnover by FY28 with continuous, ladder-type revenue increases. Growth in both domestic and export markets is expected, with domestic demand anticipated to grow faster. Second half of the year historically performs better, providing optimism for reaching double-digit growth for the full year. Expansion of dealer network in India and internationally is ongoing to support volume growth. New capacities are planned to accommodate increased demand and support the growth trajectory. Focus

Future growth expectations in earnings/operating earnings/profits/EPS?

Company targets a 15% CAGR in revenue growth, aiming for Rs.1,000 crore turnover by FY28. EBITDA margins are expected to be sustainable around 14-15%, with potential improvements due to operational efficiency. PAT margins could improve proportionally with EBITDA growth. Domestic market growth is expected to drive higher margins and top line, aiming for a 50:50 revenue split with exports. Despite short-term disruptions and slower H1 growth (~2%), optimism remains on order book and improved growth in second half. Capacity expansions and product mix shifts toward value-added products support marg

Current/ Expected Orderbook/ Pending Orders?

The company has orders in hand that they can execute by clubbing them to optimize production and maximize revenue for the remaining year. (Page 15) They are in close touch with suppliers and hope to resume full production capacity once raw materials and certifications are sorted out. (Page 15) The order position is currently okay, and management is optimistic about growth in the second half of the year, relying on domestic market growth. (Page 16) Supply chain disruption since June/July has caused a significant impact, halving monthly turnover in some segments, but they expect recovery by Janu

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Mallcom (India) LtdQ3 FY23Industrial Products

Mallcom (India) Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,007P/E: 20.9Market Cap: ₹682 CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company targets a 15% CAGR growth in revenue going forward.
→They aim to achieve Rs.1,000 crore turnover by FY28 with continuous, ladder-type revenue increases.
→Growth in both domestic and export markets is expected, with domestic demand anticipated to grow faster.
→Second half of the year historically performs better, providing optimism for reaching double-digit growth for the full year.
→Expansion of dealer network in India and internationally is ongoing to support volume growth.
→New capacities are planned to accommodate increased demand and support the growth trajectory.
→Focus on value-added products with better margins will sustain and possibly improve profitability alongside volume growth.
→The company is optimistic about emerging markets like the Middle East and aims to capitalize on increasing inquiries there.

Margin guidance

Category 3

→Company targets a 15% CAGR in revenue growth, aiming for Rs.1,000 crore turnover by FY28.
→EBITDA margins are expected to be sustainable around 14-15%, with potential improvements due to operational efficiency.
→PAT margins could improve proportionally with EBITDA growth.
→Domestic market growth is expected to drive higher margins and top line, aiming for a 50:50 revenue split with exports.
→Despite short-term disruptions and slower H1 growth (~2%), optimism remains on order book and improved growth in second half.
→Capacity expansions and product mix shifts toward value-added products support margin stability and growth.
→Working capital and supply chain improvements underway to support smoother operations and growth.
→No immediate risks foreseen that would hamper growth trajectory.

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Fundraise plans

→There is no explicit mention of any current or future fundraising through debt or equity in the provided transcript.
→The company is investing in CAPEX with planned investments of around Rs. 30-35 crores for the current financial year, which appears to be funded through internal accruals or existing financial resources.
→No indications or discussions about raising funds via debt or equity markets were noted.
→Management highlighted focusing on operational efficiency and organic growth rather than external capital raising.
→Any future investments depend on market conditions, but no concrete plans for fresh fundraising were communicated.

Order book

Yes

→The company has orders in hand that they can execute by clubbing them to optimize production and maximize revenue for the remaining year. (Page 15)
→They are in close touch with suppliers and hope to resume full production capacity once raw materials and certifications are sorted out. (Page 15)
→The order position is currently okay, and management is optimistic about growth in the second half of the year, relying on domestic market growth. (Page 16)
→Supply chain disruption since June/July has caused a significant impact, halving monthly turnover in some segments, but they expect recovery by January or February. (Page 8 & 15)
→No major margin erosion anticipated despite order delays; customers have been well-informed. (Page 15)

Capex plans

Yes

→The company plans to invest around Rs.120 crores in the next two years, nearly doubling its gross block from Rs.80 crores.
→For the current financial year (FY24), planned CAPEX is Rs.30-35 crores, with Rs.10 crores already invested in H1 and Rs.20-25 crores planned for the remaining year.
→This CAPEX is aimed at replacing old assets and creating a platform to achieve the Rs.1,000 crore turnover target by FY28.
→Expansion includes product categories like garmenting, synthetic glass, and shoes, along with improving capacity utilization and productivity.
→Post-FY24, CAPEX is expected to slow down to maintenance levels, with possible future expansions depending on market conditions.
→The Sanand project is highlighted for capacity expansion.
→The company remains alert about timely project completion to ensure contributions to turnover growth.

How does Mallcom (India) Ltd rank vs peers in Industrial Products?

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1Mallcom (India) Ltd

Rev 3Mar 3

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