Repro IndiaQ2 FY18

Repro India Q2 FY18 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 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2
  • The online book market in India is currently around ₹1,200 crores and is growing rapidly, expected to reach between ₹8,000 to ₹10,000 crores in the next 3-5 years.
  • Repro currently holds about 5% market share in the online book market with a run rate of around ₹50 crores per annum.
  • Month-on-month market share improvement is being seen as more titles and publishers are onboarded.
  • Capacity expansion plans include increasing printing capacity to 16,000 books per day (from 6,000 currently), with investments of ₹20-25 crores for new facilities.
  • Books on Demand (BOD) sales have grown from ₹75 lakhs per week (Q1) to around ₹1 crore per week (November), indicating quarter-on-quarter growth.
  • The strategy involves aggressively acquiring front-end titles and increasing pre-printed stock to improve margins and cater to growing demand.
  • Overall, the company expects significant growth in volumes and revenues driven by market expansion and capacity enhancements.

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

Fundraise plans

Yes
  • The company had an infusion of funds of around ₹80 crores through preferential allotment (₹50 crores received already; ₹30 crores pending from warrants within 12-18 months).
  • Out of this, ₹40 crores came from preferential allotment of shares and ₹40 crores through preferential allotment of warrants.
  • There is no mention of any new or future fundraising plans through debt or equity beyond these funds.
  • The existing funds are being used to reduce debt (already reduced debt from ₹198 crores to ₹158 crores, expecting a further reduction of ₹40-50 crores in Q3) and for capital expenditure to grow capacity.
  • No explicit plans were shared about raising additional debt or equity at this time.

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

Capex plans

Yes
  • Investment of approximately ₹20-25 crores planned to enhance Book on Demand (BOD) capacity.
  • Current capacity: 6,000 books per day at Bhiwandi plant; expanding to 16,000 books per day across Mumbai, Chennai (4,000 books/day), and Delhi (4,000 books/day).
  • Additional warehouses planned in Chennai, Delhi, and expansion of Mumbai warehouse to support pre-printing and stock management.
  • Investment includes warehouse setup but excludes future investment in color printing machines.
  • Plans to invest in color digital printing machines in Mumbai to meet growing demand for color books.
  • Funds from recent infusion also aimed at reducing high-cost working capital and debt, enhancing cash flows.
  • Capacity expansion targeted to keep up with growing market demand and reduce printing costs through pre-printing and offset printing.

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How does Repro India rank vs peers in Printing & Publication?

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