Mayur Uniquoters conducted conference call on 11 August 2023 to discuss the financial results and performance of the company for the quarter ended June 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 endeavor is to make the company a preferred supplier for the leading OEMs, especially in U.S. and European regions.

• Export market has a little bit down this quarter. It was 5.7 lakh meters in Q1FY24 compared to 7.65 lakh meters in Q4FY23.

• The company expects automotive export to go very high because it has got so many new orders of the new models. It expect automotive exports to jump from Rs 157 crore in FY23 to Rs 225 crore in FY24. In FY25 it expects automotive export at Rs 400 crore. Further it expects automotive exports to grow 2.5 times from FY23 to Rs 575-600 crore in FY26 based on current oredrs received.

• The company has got about 350 dealers in furnishing segment. The company plans to have about 1000 dealers in FY24.

• Footwear segment is a little bit down at the moment because of BIS standard which Government of India has introduced. As a result every footwear manufacturer has to supply the materials and BIS standard for which they are not prepared. And they want to clear their existing stock to start BIS standard. The government has given them time up to December. But by December, they have to clear all the stock and to start BIS. So for that, people are reducing their stock standard.

• The company is contracting with the big brands in footwear and leather goods. Till now, it was supplying to Indian manufacturers. Now it is contracting with the big brands all over the world.

• The biggest advantage in footwear segment is that it is just like automotive industry. In the automotive industry, it is difficult to penetrate in the beginning, but once connected, it's not that you can be thrown out tomorrow which happens in this footwear and all that. Everything is price related. But with this segment, you can get the whole world market. These brands are buying from the different parts of the world. And once you are stabilized, once you are approved, you can supply to everywhere. It's was little long procedure, but things have started and fortunately, people are liking materials, and they have visited plant also, few companies. And hopefully, by end of this year, the company will start getting orders.

• The company expects revenue growth of 12-15% in FY24 and after that 18-20% in FY25-26.

• The company expects margin improvement going forward due to increase in automotive export.

• The company expects 5-10% growth in PU in FY24 but expect a significant 50% growth in FY25.