Mayur Uniquoters conducted conference call on 14 November 2022 to discuss the financial results and performance of the company for the quarter ended Sep'22. 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 intends to become a preferred supplier for leading OEMs, especially in the US and Europe.

• The company products have already been approved by Mercedes Benz, BMW and Volkswagen in India. Supplies to Mercedes Benz and Volkswagen for their new models have begun. Supplies to BMW is expected from February 2024. However it is still supplying small quantity through their Thailand venture. Monthly quantities is around 4000 meters at 10 euro per meter which is coming around 33 lakhs per month and regular supply start nearly 40,000 meters per month from February 2024.

• The company has also entered into cell agreement with Bakson India for product supply to Hyundai Motors plant within and outside India and supplies also have started in India in June quarter.

• The company has put up forward integration lamination plant which was also earlier getting done from third party supplier for which around Rs 3 crore of capex was done which will improve realization and margin as well.

• The company has been selected for many incoming new models in automotive sector in exports and domestic auto for which the supply will start in the year 23-24 and 24-25. As a result the company expects very good performance in next two years. This year also it expects better performance than last year.

• The company is also increasing its perforation as it is ordering new machine from Europe which will come in next six months.

• Volume for the company was 75 lakh meter against 70 lakh meter in last quarter generating a growth of 7.5%. Exports was up 4.5% while the volume was down 21%. Domestic export volume was up 30%.

• The company expects exports OEM business to improve from 23-24 and then it will keep on increasing quarter to quarter for next one year after that which shall also improve margins.

• The company is trying to increase the business model to counter problems of chip in automobile industry - either for models which it is not having or new models.

• Margins were impacted despite increase in volumes due to lower realizations and change in product mix ( lower export OEM)

• The company expects export business to be 2-2.5 times from current volumes in next two years.