Rajshree Polypack Nov-24

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Questions and Answers

What is the expected sales figure for Olive this year according to Ramswaroop Thard?

Rs. 180 to Rs. 200 crores

Rs. 20 to Rs. 25 crores

Rs. 30 to Rs. 35 crores (correct)

Rs. 150 to Rs. 160 crores

What number is projected for sales next year for Olive?

Rs. 50 crores

Rs. 100 crores

Rs. 200 crores

Rs. 180 crores (correct)

What is the current status of the Odisha plant investment?

Investment has been completed

The investment has been canceled

The plant is fully operational

Investment has been deferred for 6 to 8 months (correct)

Why has Ramswaroop Thard decided to defer the investment in the Odisha plant?

To stabilize existing investments and focus on Olive Signup and view all the answers

What notable growth was reported in sheet volume?

70% growth Signup and view all the answers

According to the interview, what was the volume growth for the packaging side?

6% growth Signup and view all the answers

What is the reason for focusing on Olive as stated by Ramswaroop Thard?

To stabilize existing investments Signup and view all the answers

What reassessment timeframe did Ramswaroop Thard mention regarding the Odisha project?

In two quarters Signup and view all the answers

What is the targeted profitability increase compared to last year as discussed?

40%-50% Signup and view all the answers

What was the improvement in the working capital cycle from last year to this year?

From 155 days to 115 days Signup and view all the answers

What is the expected revenue from the injection molding segment for this year?

Rs. 28 to Rs. 30 crores Signup and view all the answers

What primarily contributed to the momentum in sales during the quarter?

Growth in barrier packaging sales Signup and view all the answers

What is the company's aim for the working capital cycle in the next two quarters?

To bring it below 100 days Signup and view all the answers

What was the reported bottom-line improvement in H1 compared to last year?

Significantly improved Signup and view all the answers

By what percentage did barrier packaging and general packaging grow in terms of volume?

8% Signup and view all the answers

What operational status of the capacities was mentioned by Ramswaroop Thard?

Most capacities are operating at a decent level Signup and view all the answers

What was the expected growth rate in the packaging sector that did not materialize due to slower demand from key customers?

12% to 15% Signup and view all the answers

When was the additional capacity for toll manufacturing installed?

This year Signup and view all the answers

What is the anticipated revenue from barrier packaging for the year?

Rs. 35 to Rs. 37 crores Signup and view all the answers

What does PAT stand for in the context discussed?

Profit After Tax Signup and view all the answers

What is the peak revenue that can be generated from the barrier packaging setup?

Rs. 60 to Rs. 65 crores Signup and view all the answers

What was the historical performance trend over the past ten quarters?

Consistent YoY growth in revenue and volume Signup and view all the answers

What was the utilization rate of the revenue-generating setup mentioned?

50%-60% Signup and view all the answers

What are the expected outcomes as the joint venture (JV) scales up?

Improvement in overall profits of the JV Signup and view all the answers

What is the primary reason for deferring the investment in the Odisha plant?

To consolidate existing operations and maximize utilization. Signup and view all the answers

How much capacity can potentially be added with the installation of one more machine?

750 to 800 MT per annum Signup and view all the answers

What is the anticipated timeframe for the installation and running of the Odisha plant, once initiated?

14 to 16 months Signup and view all the answers

What should happen in the next 2 quarters regarding the debt level?

There will be some reduction in debt. Signup and view all the answers

What strategy is mentioned for improving the bottom line?

Bringing down costs through optimization. Signup and view all the answers

What is indicated about the company's existing molding and thermoforming capacity?

One additional machine can be sneaked in to increase capacity. Signup and view all the answers

Why might there be a shortfall in capacity for 1 or 2 quarters?

As a result of consolidating existing operations. Signup and view all the answers

What is one of the goals for the current phase of operation?

Maximizing utilization of current infrastructure. Signup and view all the answers

What is the revenue guidance for FY25 mentioned in the content?

Rs. 325 to Rs. 350 crores Signup and view all the answers

What is the expected revenue growth percentage for the following year from the current guidance?

12% to 15% Signup and view all the answers

What EBITDA margin is being targeted for the next financial year?

14.5% plus minus 0.5% Signup and view all the answers

What was the EBITDA margin in the previous 2-3 quarters?

Around 12% Signup and view all the answers

What additional revenue does Olive need to contribute in order to potentially reach the guidance of Rs. 475 crores?

Rs. 170 to Rs. 180 crores Signup and view all the answers

Which statement accurately reflects the management's future investment outlook?

Most of the expansion has been completed. Signup and view all the answers

Which of the following statements was implied regarding the revenue guidance Q1 FY26?

Revenue will likely stabilize at Rs. 475 crores. Signup and view all the answers

What was the initial contemplated revenue figure mentioned by Rajesh Jain for the next year?

Rs. 475 crores Signup and view all the answers

What was the percentage growth in EBITDA for H1 FY25 compared to the previous year?

39.74% Signup and view all the answers

What was the PAT for H1 FY25?

Rs. 9.13 crores Signup and view all the answers

By how much did the injection molding segment grow in H1 FY25?

57% Signup and view all the answers

What will be the total installed capacity for thermoforming after the new machine is installed?

11,520 metric ton per annum Signup and view all the answers

Which product category showed the highest increase in sales during Q2 FY25?

Sheet sales Signup and view all the answers

How many new customers were added in H1 FY25?

16 new customers Signup and view all the answers

When is commercial production set to begin for the new extrusion line?

January 25 Signup and view all the answers

Which international exhibition was not mentioned as part of the company's activities?

Pack Expo in Chicago Signup and view all the answers

Study Notes

Earnings Conference Call Transcript

Date: November 8, 2024
Subject: Transcript of Q2 & H1 FY25 Earnings Conference Call for Rajshree Polypack Limited
Purpose: To disseminate the transcript of the earnings conference call for the quarter and half-year ended September 30, 2024
Held on: Wednesday, November 6, 2024
Availability: The transcript is available on the company website (www.rajshreepolypack.com)
Information: The conference call highlights financial results up to September 30, 2024 and other related information already available on the website.

Conference Call Details

Management: Ramswaroop Thard (Chairman & Managing Director), Sunil Sharma (CFO)
Moderator: Nikhil Shetty (Nuvama Wealth)
Key Topics Discussed:
- Financial Highlights (Q2 and H1 FY25)
- Turnover, EBITDA, and PAT growth
- Sheet Sales (particularly barrier packaging)
- Product Development (especially injection molding)
- Export performance
- Capacity expansion
- Working capital cycle and debt position
- Future outlook (FY26)
- Management responses to questions from investors

Key Financial Highlights (Q2 FY25)

Turnover: Rs. 88.28 crore, a 30.79% increase over Q2 FY24 (Rs. 67.50 crore)
EBITDA: Rs. 13.34 crore, a 46.43% increase over Q2 FY24 (Rs. 9.11 crore)
EBITDA Margin: Improved from 13.5% to 15.11% YoY
PAT: Rs. 5.10 crore, a 120% increase over Q2 FY24 (Rs. 2.31 crore)
PAT Margin: Improved from 3.24% to 5.78% YoY

Key Financial Highlights (H1 FY25)

Turnover: Rs. 166.98 crore, a 19.11% increase over H1 FY24 (Rs. 140.19 crore)
EBITDA: Rs. 24.93 crore, a 39.74% increase over H1 FY24
PAT: Rs. 9.13 crore, a 107% increase over H1 FY24

Other Key Information

Export Sales (Q2 FY25): Rs. 10.55 crore (vs Rs. 10.02 crore in Q2 FY24).
Barrier Packaging Sales: Aiming for Rs. 35-37 crore for the full year
Overall exports (FY25): Estimated to be 15-16% of total revenue (around Rs 45-50 Crore)
Capacity Expansion: New thermoforming machine increasing installed capacity to 10,770 metric tons per annum, and an extrusion line is expected to reach a capacity of 24,000 metric tons per annum
Injection Molding Capacity: Increased to 3,300 metric tons per year
Debt reduction: Management anticipate debt reduction over the next two quarters
FY26 Outlook: Continued growth projected

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Description

Test your knowledge on the projected sales figures for Olive as discussed by Ramswaroop Thard. Explore the current status of the Odisha plant investment and the reasons behind its deferment. Additionally, evaluate your understanding of operational growth in the packaging segment and the company's financial targets.