Highlights of the meet

The standalone net sales for December 2016 quarter grew by 11% to Rs 179.68 crore. The net profit has grown by 17.5% to Rs 56.06 crore.

Q3 is path braking quarter for company. It has recorded highest ever sales and PAT.

Till October robust growth seen while November month was washout due to demonetization. In December month, business is back to normal while January has seen robust growth.

Demonetization and GST will be highly beneficial to the company on long run.

Residential air cooler – launch several models. Earlier it was wall mounted air cooler, followed by ipure air cooler. Also launched mobile commercial aircoolor and finally touch range of air cooler.

In Domestic business the company has improved service consistently.

Centralized air cooler – triple digit growth seen YoY on low base.

International business sales grew by 51% to Rs 41 crore.

In Q3, the company did not offered any discount to dealer and distributor but offered various sales promotion schemes

Unorganized air cooler – there cost has gone up and selling price gone up post demonetization by ~20-25%.

Volume growth for Q3 – in line with top-line growth.

Aircooler domestic market size is 8 mn unit and value wise Rs 3000-4000 crore and industry growing at rate of 12-15%.

Industrial air cooler contributes 15% to top-line.

China business – from current year the company should look up. China and South East Asia market will be cater by China subsidiary. Total funding wont be in excess of Rs 35-40 crore and half have been already spend it now.

The company has started sourcing from China for industrial air cooler.

GST – very much prepared for GST. Ii will have positive impact on business. Unorganized players cost will go up and price gap between organized and unorganized will narrow, thus benefitting organized players.

Resident business - current level of margin will be maintained gng fwd.

Industrial cooling business margin is in line with residential cooling business.

40 plus model in residential, while 3 yrs before only half model were available

Wall mounted air cooler – the company is going really slowly on this products and still test marketing. It will be not launch in full fledge way in current year also.

Market share of the company value wise is 50% in domestic market.