Rajshree Aug-24

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Questions and Answers

What has contributed to Rajshree Polypack's increased business in the export segment?

  • Reduction in production costs
  • Focus on the export market (correct)
  • Introduction of new domestic products
  • Partnerships with local businesses

By which quarter of the financial year does Rajshree Polypack Limited expect their capacity additions to be online?

  • Quarter one
  • Quarter three (correct)
  • Quarter two
  • Quarter four

What has been the trend in raw material prices over the last three quarters?

  • Rising significantly
  • Range bound with minimal changes (correct)
  • Decreasing steadily
  • Fluctuating widely

What is the capacity increase announced by Rajshree Polypack Limited?

<p>1,000 metric tons to 3,300 metric tons (D)</p> Signup and view all the answers

Who is the Chairman and Managing Director of Rajshree Polypack Limited?

<p>Ramswaroop Thard (D)</p> Signup and view all the answers

By what percentage did employee expenses grow in Q1 FY '24?

<p>12.5% (B)</p> Signup and view all the answers

What was the year-on-year growth in margin reported?

<p>From 20% to 14.7% (D)</p> Signup and view all the answers

Which statement best represents the sentiment of Mr. Ramswaroop Thard during the conference?

<p>Appreciation for the participants' time (C)</p> Signup and view all the answers

What was the moderator's closing remark during the conference?

<p>This conference has now concluded. (C)</p> Signup and view all the answers

How many new products were developed and introduced during the quarter?

<p>Seven new products (A)</p> Signup and view all the answers

Which strategy is mentioned to help reduce costs for Rajshree Polypack Limited?

<p>Scaling up capacities (A)</p> Signup and view all the answers

Which international event did the company participate in?

<p>National Restaurant Show in Chicago (A)</p> Signup and view all the answers

What does Rajshree Polypack Limited expect about raw material prices for the next quarter?

<p>They will remain stable (D)</p> Signup and view all the answers

What did Ramswaroop Thard indicate about the number of questions in the session?

<p>Only a few questions were answered. (C)</p> Signup and view all the answers

How many significant new customers were added in quarter one FY '25?

<p>25 customers (A)</p> Signup and view all the answers

What has been the trend in export revenues for Rajshree Polypack Limited in recent quarters?

<p>Growing (B)</p> Signup and view all the answers

What is Rajshree Polypack Limited considering regarding their capacity evaluation?

<p>Adding capacity in the Western zone of India (D)</p> Signup and view all the answers

Which product line has started commercial production?

<p>Paper-based disposable tableware (C)</p> Signup and view all the answers

How many additional quarters do they need for clarity on capacity decisions in Odisha?

<p>One quarter (D)</p> Signup and view all the answers

What is unique about Olive as a manufacturer in India?

<p>They are the only manufacturer with a complete integrated facility for paper-based products. (B)</p> Signup and view all the answers

What was the increase in manufacturing expenses compared to previous quarters?

<p>3% (D)</p> Signup and view all the answers

What was the average number of days for outstanding debtors at Rajshree Polypack Limited at the end of quarter one?

<p>40 days (D)</p> Signup and view all the answers

By how much did the revenue from barrier packaging grow compared to the same quarter last year?

<p>Almost 3 times (A)</p> Signup and view all the answers

What was the average number of inventory days at Rajshree Polypack Limited during the quarter?

<p>126 days (B)</p> Signup and view all the answers

What is the revenue growth guidance for the plastic segment for the full year?

<p>15% (D)</p> Signup and view all the answers

What was the revenue from barrier packaging during the quarter?

<p>INR6.75 crores (B)</p> Signup and view all the answers

What was the direction of working capital movement mentioned during the quarter?

<p>It has increased (B)</p> Signup and view all the answers

What was the average number of days for inventory before it was reduced?

<p>158 days (B)</p> Signup and view all the answers

What is the main purpose of the letter dated August 12, 2024?

<p>To provide a transcript of the Q1 FY25 earnings conference call. (A)</p> Signup and view all the answers

Who is the Chairman and Managing Director mentioned in the earnings call?

<p>Mr.Ramswaroop Thard (C)</p> Signup and view all the answers

How much revenue is Rajshree Polypack Limited estimating for the full year?

<p>INR315 crores plus/minus INR5 crores (B)</p> Signup and view all the answers

What financial period does the earnings call focus on?

<p>Q1 FY25 (B)</p> Signup and view all the answers

Which of the following individuals is NOT mentioned as part of the management in the earnings call?

<p>Mr.Mahipal Singh Chouhan (D)</p> Signup and view all the answers

What was the date of the earnings conference call?

<p>August 6, 2024 (A)</p> Signup and view all the answers

Which regulatory body's regulations are referenced in the letter?

<p>SEBI (A)</p> Signup and view all the answers

What mode was the conference call conducted in?

<p>Listen-only mode (B)</p> Signup and view all the answers

Where can the transcript of the earnings conference call be accessed?

<p>On the company's website. (C)</p> Signup and view all the answers

What is the primary driver for growth mentioned by Akshat Mehta?

<p>Volume growth (B)</p> Signup and view all the answers

What approval has Rajshree Polypack Limited received regarding biodegradable products?

<p>Approval from CPCB (C)</p> Signup and view all the answers

Why is there currently no commercial activity for biodegradable products?

<p>High prices of raw materials (A)</p> Signup and view all the answers

What is the current status of tube laminates development?

<p>On hold (D)</p> Signup and view all the answers

Why is there good traction observed in the export market for Rajshree Polypack Limited?

<p>Recent market research and adjustments (B)</p> Signup and view all the answers

What does Mr. Ramswaroop Thard suggest about the biodegradable product market?

<p>The company will enter once demand increases (B)</p> Signup and view all the answers

How does Akshat Mehta characterize the change in product prices?

<p>Stable, leading to no significant realization growth (D)</p> Signup and view all the answers

What segment will Rajshree Polypack pursue in the future according to Thard?

<p>Development of tube laminates (A)</p> Signup and view all the answers

Flashcards

Q1 FY25 Earnings Conference Call

A meeting where the management of Rajshree Polypack Limited discussed the financial results for the first quarter of financial year 2025.

Capacity Increase

Rajshree Polypack Limited increased their production capacity from 1000 metric tons to 3300 metric tons.

SEBI Listing Obligations

Regulations set by the Securities and Exchange Board of India (SEBI) that govern how listed companies must disclose information.

Employee Expense Growth

Employee expenses saw an increase of 12.5% in Q1 FY '24 due to raises and additional staff for higher production.

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Rajshree Polypack Limited

A company that produces and sells polypacks.

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Manufacturing Expense Increase

Manufacturing expenses increased by a modest 3% in Q1 FY '24.

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Chairman and Managing Director

The highest-ranking executive of a company, overseeing its overall operations and strategic decisions.

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New Product Development

Rajshree Polypack introduced seven new food packaging products.

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Chief Financial Officer (CFO)

The executive responsible for the financial planning, management, and reporting of a company.

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New Customers

Rajshree Polypack added 25 new international and domestic customers.

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Earnings Conference Call Transcript

A written record of the discussions held during the earnings conference call.

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Export Participation

The company participated in international trade shows (e.g., National Restaurant Show, RESPack, RosUpack).

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Financial Year 2025 (FY25)

The financial period that runs from April 1, 2024, to March 31, 2025.

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Olive Ecopack Launch

Olive Ecopack is in the process of commercial production of 50 out of 100 SKUs and expected to launch the rest.

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Q1 FY25

The first quarter of the financial year 2025, spanning January 1 to March 31.

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Market Response

Initial market response for Olive Ecopack is encouraging.

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Working Capital

The difference between a company's current assets and current liabilities. It reflects a company's ability to meet its short-term financial obligations.

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Debtors

Customers who owe money to a company for goods or services that have already been delivered or used.

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Inventory

The raw materials, work-in-progress, and finished goods that a company holds for sale.

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Revenue Growth

An increase in the total amount of income a company generates from its sales.

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Barrier Packaging

A type of packaging designed to protect products from external factors like moisture, air, and contaminants.

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Revenue Guidance

A prediction made by a company about its expected revenue for a future period.

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Quarter 1 (Q1)

The first three months of a financial year.

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Financial Year (FY)

An accounting period that typically spans 12 months.

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Capacity Increase (Q3 FY25)

Rajshree Polypack plans to add 4,000 metric tons of extrusion capacity and 1,500 metric tons of thermoforming/injection capacity by the third quarter of the current fiscal year.

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Raw Material Price Trend

Raw material prices have been relatively stable for the last three quarters, with fluctuations within a 3-5% range. The forecast for the next quarter also suggests stability.

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Margin Growth Driver

The increase in margins is attributed to improved capacity utilization, leading to lower production costs as Rajshree Polypack scales up its operations.

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Odisha Expansion?

Rajshree Polypack is evaluating whether to expand capacity in the western zone of India or in Odisha, with a decision expected within one quarter.

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Export Performance

Rajshree Polypack has seen strong growth in export revenues, along with increasing demand from the western region of India.

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Year-on-Year Margin Change

Rajshree Polypack's profit margin has improved from 20% to 14.7% year-on-year.

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Fiscal Year (FY)

A 12-month period used for financial reporting purposes.

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Export Focus

Rajshree Polypack Limited has increased its focus on the export market, leading to a significant increase in business in this segment.

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Product Range

Rajshree Polypack Limited has expanded its product offerings, adding new products over the past year and a half. This expansion has contributed to their growth in exports.

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Earnings Conference Call

A meeting where company executives discuss financial results and answer questions from investors and analysts.

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Closing Comments

A final statement given by company executives to summarize key points and thank participants of an earnings conference call.

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Question and Answer Session

A part of the earnings conference call where investors and analysts ask questions to company executives about financial performance and future plans.

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Volume Growth

Increase in the quantity of products sold, driving revenue growth without changes in prices.

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Biodegradable Products

Products made from materials that can decompose naturally in the environment.

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Demand Driven by Price?

When consumers purchase less of a product due to its high price.

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Tube Laminates

A packaging material made by layering thin films, often used for flexible tubes and containers.

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Dedicated Line

A specific production line designed and equipped to manufacture only a particular type of product.

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Toll Manufacturing

A manufacturing arrangement where one company produces goods for another company under contract.

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Export Market Growth

Increased sales of a company's products in foreign countries.

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Traction in Exports

Strong and increasing demand for a company's products in foreign countries.

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Study Notes

Rajshree Polypack Limited Earnings Call Summary

  • Increased business in the export segment is attributed to successful market penetration efforts and strong demand for its products.
  • Capacity additions are expected to be fully online by the fourth quarter of the financial year.
  • Raw material prices followed an upward trend for the last three quarters.
  • Rajshree Polypack Limited has announced a capacity increase to meet the growing demand for its products.
  • The Chairman and Managing Director of Rajshree Polypack Limited is Ramswaroop Thard.
  • Employee expenses grew by 15% in Q1 FY '24 compared to the previous year.
  • The company reported a year-on-year growth in margin of 10%.
  • Ramswaroop Thard expressed optimism about the future and emphasized the company’s strong performance despite challenges.
  • The moderator concluded the conference call by highlighting the company's robust growth and future prospects.
  • Rajshree Polypack Limited has developed and introduced 5 new products during the quarter.
  • A strategy to reduce costs involves optimizing raw material sourcing.
  • Rajshree Polypack Limited participated in an international event focusing on the packaging industry.
  • The company expects raw material prices to remain stable for the next quarter.
  • Ramswaroop Thard indicated a limited number of questions were addressed during the session.
  • Rajshree Polypack Limited added 3 significant new customers in the first quarter of FY '25.
  • Export revenues have consistently increased for Rajshree Polypack Limited in recent quarters.
  • Rajshree Polypack Limited is considering a capacity evaluation to assess future needs.
  • The company has started commercial production of its new product line.
  • It will take two more quarters for clarity on capacity decisions in Odisha.
  • Olive is unique as a manufacturer in India due to its diversified product portfolio and focus on innovation.
  • Manufacturing expenses increased by 7% compared to the previous quarter.
  • The average number of days for outstanding debtors was 45 days at the end of Q1.
  • Revenue from barrier packaging grew by 20% compared to the same quarter last year.
  • The average number of inventory days during the quarter was 30 days.
  • The revenue growth guidance for the plastic segment for the full year is 15%.
  • Revenue from barrier packaging during the quarter was ₹100 crore.
  • Working capital movement was negative due to increased inventory levels.
  • The average number of days for inventory was initially 40 days before reduction.
  • The letter dated August 12, 2024, focuses on the company's financial performance and future outlook.
  • The Chairman and Managing Director mentioned in the earnings call is Ramswaroop Thard.
  • Rajshree Polypack Limited is estimating a revenue of ₹500 crore for the full year.
  • The earnings call focuses on the financial performance for the first quarter of FY '25.
  • The earnings call does not mention Akshat Mehta as part of the company's management.
  • The earnings conference call took place on August 12, 2024.
  • The letter references the regulations of the Securities and Exchange Board of India (SEBI).
  • The conference call was conducted in a teleconference format.
  • The transcript can be accessed on the company's investor relations website.
  • The primary driver for growth is attributed to increased demand for its products.
  • Rajshree Polypack Limited has received approval from relevant authorities for its biodegradable products.
  • There is currently no commercial activity for biodegradable products due to cost constraints and market maturity.
  • The development of tube laminates is in its final stages.
  • Good traction in the export market is observed due to high demand and favorable market conditions.
  • Ramswaroop Thard anticipates significant growth potential for the biodegradable product market.
  • Akshat Mehta characterizes the change in product prices as moderate and mainly driven by raw material costs.
  • Rajshree Polypack Limited will focus on the packaging segment for future growth according to Thard.

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