Mayur Uniquoters conducted conference call on 23 May 2023 to discuss the financial results and performance of the company for the quarter ended March 2023. Mr. Suresh Kumar Poddar - Chairman & Managing Director and Mr. Vinod Kumar Sharma – CFO of the company addressed the call

Highlights of the Concall

• The company expect very good performance for next two years is exports market as it has been selected and also received a good and confirmed orders for some upcoming new models in export and domestic markets for which supply for some of the new models have already started and some models is expected to start from second quarter of current financial year

• Volume growth in Q4FY23 was around 17% compared to Q4FY22 while for FY23 it was around 14%. Exports volumes grew 18% during FY23 while it was up 45% in Q4FY23.

• Polyurethane (PU) leather contribution was at around 8 lakh metre during FY23 and 2 lakh metre during Q4FY23

• Higher other expense was due to increased marketing spends, which were subdued during Covid times

• Revenue from Mercedes (South Africa) was at Rs 43 crore during FY23 with similar revenue expected in FY24

• The company mentioned about active discussions going on with big footwear brands for its PU leather and expects order inflow from Q4FY24 onwards. Further, they said export to BMW to start from CY24 end or early CY25 with material requirement pegged at 30,000-35,000 metre per month. Auto OEM exports were at Rs 142.3 crore during FY23

• The company mentioned about supplying PU leather to all domestic OEMs offering mid to high segment cars

• Domestic auto business grew 24% in FY23 and expects double digit growth in FY24

• Export auto OEM revenue was Rs 60 crore in Q4FY23 while auto OEM domestic was Rs 39 crore, auto domestic replacement was Rs 32 crore, footwear was Rs 44 crore;, furnishing was Rs 32.5 crore and general exports was Rs 17 crore

• The company expects overall footwear industry demand of 6-7% in FY24.

• The company has added around 350 dealers for furnishing side and plan to add another 300 minimum.

• The company expects its revenue to grow 17-18% during FY24 and 25-30% growth in FY25. It also expects auto OEM exports to grow 60% & 70% in FY24 & FY25, respectively.

• The company is persuading government of India to put up anti dumping duty on cheap imports of PU leather from China.

• The company currently has no plans for capex except for maintenance capex of around Rs 5-10 crore.