- 25% of the total growth was related to volume and 75% was related to value both in Wires and Cables as well as FMEG (fast moving electrical goods) segments.
- Yearly Capex: Rs 300- 350 Cr on a sustainable basis going forward excluding Mergers and acquisitions and entering into new product categories. 2/3rd of Capex will go for Wires and Cables and rest of it in FMEG.
- Wires and Cables have 60% of business from B2B and remaining from B2C. Company has consistently been increasing B2C sales which is more margin accretive.
- FMEG growth was affected by realignment strategy, supply side issue related to switches. Company is planning to manufacture switches in-house.
- Part of project leap- multi year transformation journey. To reach 20,000 Cr revenues by FY26 and EBIT Margins for FMEG to 12%.
- Wires and Cables EBIT margins to remain in 11-13% band on a sustainable basis.
- Inventory are at normalised levels across the business segments.
- Cables and Wires depends on copper. Hence, company has sourced some of its dependence from local sources while majority of it is imported. Imported is good for the company because the payable days can be 90-180 days but in case of domestic it is cash and carry mode only. Hence, company will balance the sourcing, most of it from imports. Due to increased cash and carry during the year, payables have reduced. But it will stabilise in the near term.
- Company is looking to enter into EHV cables which are difficult to manufacture as compared to the other cables.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF
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