Repro IndiaQ1 FY19

Repro India Q1 FY19 Earnings Call Analysis

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

Price: ₹304Market Cap: ₹414 CrSector: Printing & Publication

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
  • Books on demand business is expected to continue consistent month-on-month and quarter-on-quarter growth, aiming to expand market share by adding more titles.
  • The run rate for books on demand has reached approximately 9,000 books per day, translating to an annualized revenue of around ₹108-120 crores.
  • Strong growth is anticipated in online book sales, supported by e-commerce expansion and increasing demand from the school segment (K-12), with efforts underway to scale the school project.
  • Capacity expansion in Bhiwandi to 12,000 books per day, with plans for additional facilities in Bangalore and Delhi within the financial year to support volume growth.
  • Expectation of improved EBITDA margins as scale is achieved, due to overheads growing at a slower rate than contribution.
  • Print business focus is on maintaining revenues and healthy cash flows rather than growth.
  • Continued market growth at 19%-20% in online book sales driven by increased penetration and partnerships with key players like Amazon and Flipkart.

See what Repro India management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no explicit mention of any current or future new fundraising through debt or equity in the provided transcript.
  • The company has successfully reduced its debt over the years and plans to continue this trend through better debtor recovery and reduced working capital needs.
  • Focus is on reducing the number of days outstanding and benefiting from the shift to books on demand, which will lower working capital requirements.
  • There were no indications of new investments in products like Rapples, suggesting restrained capital expenditure.
  • The strategy emphasizes internal cash flows and financial consolidation rather than raising new funds.
  • In summary, the company aims to manage growth primarily through operational cash flows and improving efficiencies without resorting to new debt or equity funding in the near term.

See what Repro India management said on order book — free account, 30 seconds.

Capex plans

Yes
  • The company is augmenting its print-on-demand (POD) capacities in Mumbai to 12,000 books per day.
  • Following stabilization of the expanded Bhiwandi facility, two new facilities are planned in Bangalore and Delhi, expected to be operational within the current financial year.
  • No significant further investment is currently planned in Rapples; existing schools are serviced with potential bundling once K12 book distribution scales.
  • The school sales model is being actively developed with investments in sales and manpower to build a strong funnel for the next academic year.
  • Future investments are expected to be light, with working capital projected to become negative as scale increases, aimed at improving returns on capital.
  • The company is focusing strategically on growing its e-retail business and strengthening relationships with key customers, including multinational clients in print and export segments.

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