Category
📺
TVTranscript
00:00We have Gala Priskin that has listed today at a 40% premium to its issue price on the
00:04exchanges.
00:06We did have the opportunity to talk to the management on their issue and what they would
00:10be doing with the IPO proceeds and margin outlook.
00:13Let us listen to the slides of that conversation.
00:18So basically, we are in three product categories as you said, disk springs, coil springs and
00:26fasteners as well.
00:28We cater to three geographical markets, India, Europe and USA.
00:33And we address three market verticals which is renewable energy where wind turbine and
00:40hydro turbines are our customers.
00:42Then we address industrial where mainly electrical customers like ABB, Schneider and Siemens
00:48and all.
00:49And then third category is mobility where we address automotive as well as railways
00:54where our customers are Schaeffler and Velios.
00:57In railways, we have public as well as private sector companies as our customers.
01:02So the simple business models is around precision components for these industries for global
01:09OEMs.
01:10Okay.
01:11So, precision component manufacturing for global OEMs across the three industries that
01:16you have mentioned.
01:17Now, I want to come to your objects of the issue you are raising from the fresh issue
01:22proceeds of about 135 crore.
01:24If you plan to set up a new facility which is near Chennai and again additional capex
01:29would be required in your existing Bada manufacturing facility, I want to understand what is the
01:36additional capacity that you are expecting from the new unit and also when are we expecting
01:42to make this plant operational?
01:44Mr. Jallan, I want to come to you on this question first.
01:47Sure.
01:48Sure.
01:49Very much.
01:50So, out of the new equity which we are issuing 135 crore something will be toward the fresh
01:57equity and we will be deploying 37 crore for new facility at Chennai Vallam Vadgalam and
02:04the capacity in the rupee term will be approximately 110-120 crore which will be generating from
02:10this capex all put together.
02:13We are expecting to start this facility by end of this last quarter FY25 Q4 quarter.
02:22From the capex which we are putting in your existing facility at Vada which is approximately
02:2611 crore, we are seeing the additional turnover will be approximately 40-45 crore from this
02:31additional capex.
02:32I want to understand now with the additional capex and the revenue turnover, what is the
02:37kind of growth that we are projecting in FY25 and even in the next one to two year scenario
02:42if you can expand more on that space?
02:44Sure.
02:45So, basically if you see the historically in last three year we are able to grow at
02:52CAGR of 25% and the type of the market which we are catering the new market fastener particular
03:00for fastener we enter into, we are seeing the considering the market the capacity what
03:04we are putting up, we are expecting a similar type of growth in coming years as well.
03:10Okay.
03:11So, a similar growth level that we should be looking out for.
03:14Now, what is interesting is your margin profiles there has been a consistent pickup that we
03:18are looking at last three years 15% mark, from 15% we have seen this reaching to the
03:2420% mark.
03:25Firstly, I want to understand whether the margins will sustain at similar levels and
03:30considering your margin profile the gross margins have remained in the 59%.
03:34So, where are the key additions that we are looking at, what are the key growth drivers
03:39that is leading to this margin expansion?
03:41Yeah.
03:42So, basically as Kirtikala mentioned we are in three vertical, industrial, renewable and
03:52mobility and we have a more than 40,000 around 40% export.
03:56So, the mix of the margin which comes from the different end industry, different end
04:00customer India market, global market.
04:03Considering the all in coming year also we are projecting the similar type of gross margin,
04:08similar type of EBITDA margin of 18 to 20%.