Repro IndiaQ1 FY20

Repro India Q1 FY20 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

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • The online book market in India is currently around $6 billion with only about 3% of sales happening online, but this share is growing steadily.
  • The company achieved Rs.110 crores in online sales last year (8-9% share), expecting this share to increase along with overall market growth.
  • Long-term target includes becoming the largest player in online book sales with at least 20% market share.
  • Print on Demand (POD) business is a key growth focus, with POD volumes increasing and expected to grow further; new plants in Delhi and South India will triple POD capacity and expand market coverage from 35-40% to around 80%.
  • Traditional print business is not expected to grow substantially; focus is on scaling POD and e-retail businesses.
  • E-retail business aiming for aggressive growth through content acquisition, multi-location POD facilities, and strategic partnerships with key publishers.
  • Overall revenue growth of around 10-11% QoQ and EBITDA growth of 25% indicate positive momentum.

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 fundraising through debt or equity in the transcript.
  • The company has reported a reduction in debt from Rs.124 crores to Rs.89.65 crores over the last year.
  • The finance cost has come down substantially compared to the previous year, indicating a reduction in borrowing.
  • Management has not provided any guidance or plans on raising additional capital through equity or debt.
  • Focus appears to be on operational growth, capacity expansion (new plants in Delhi and South India), and improving margins rather than raising external capital.
  • No statements suggesting intentions for fresh fundraising during the discussed period.

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

Capex plans

Yes
  • Repro India Limited is investing in new Print-On-Demand (POD) facilities in North India (near Delhi, Manesar on Gurgaon Jaipur Highway) and South India (Bangalore).
  • The Delhi facility started contributing to revenues from August 2019, with the South India facility expected to be operational by the end of the financial year 2019.
  • These new facilities will nearly triple the one-book POD capacity, enhancing coverage from 35-40% to almost 80% of the Indian market.
  • Investments are also being made in strengthening IT systems and finishing equipment to service newer segments like STM, International, and Children books.
  • The print business under the subsidiary Repro Books Limited (RBL) is being merged with Repro India Limited (RIL) to pool resources, streamline operations, and claim full input tax credits.
  • The focus remains on scaling POD operations rather than traditional print, aiming for profitable growth with higher operational efficiencies.

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