Mallcom (India) Ltd Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Harsh Doshi - Analyse India - Analyst : Good morning, sir. I wanted to know whether the garment supply chain issue is 100% sorted now and is that the reason for healthy revenue in Q4?

Question: Harsh Doshi - Analyse India - Analyst : Understood. Also, I wanted to know what was the capacity utilization level in Q4 and the full financial year?

Question: Harsh Doshi - Analyse India - Analyst : Understood. Okay. Sir, last question, what would be a typical asset turn in the industry?

Question: Harsh Doshi - Analyse India - Analyst : Okay, sir. Thank you. No problem.

Question: Lakshminarayan - Tunga Investment - Analyst : Thank you. Sir, if I just look at the turnover, we have actually grown, but from an operating cash flow, you seem to be underwhelming. Just want to understand why our cash flows have been lower this year and how does the company think about it?

Question: Lakshminarayan - Tunga Investment - Analyst : Is this at let's say, over the last several years. This seems to be lower in terms of operating cash flows. So when do you think this will get normalized in this sector--

Question: Lakshminarayan - Tunga Investment - Analyst : My question is, If I look at our operating cash flows over the last two years. I find that from that context also, it's quite low in the last, if I look at from 2017 onwards, leave the 2022 years. So is this a one-off and we would actually go back to better operating cash flow levels or this is something which would remain as we actually climb up for higher growth?

Question: Lakshminarayan - Tunga Investment - Analyst : Got it. So between the international business and the India business, how does the working capital change for the India and international?

Question: Lakshminarayan - Tunga Investment - Analyst : Got it. Any number you have in mind sir, because--

Question: Lakshminarayan - Tunga Investment - Analyst : And secondly, when we actually export, do we invoice to a through agents or do you actually have a sales office or do we actually directly or--

Question: Lakshminarayan - Tunga Investment - Analyst : Exports markets, sir?

Question: Lakshminarayan - Tunga Investment - Analyst : Got it. Sir and in terms of the total CapEx you like to do for the next three years. So last year, I mean, last couple of years, you have done at least in the range of INR45 to INR25 crores to INR45 crores. So I just want to understand how you think about CapEx for the next two years down?

Question: Lakshminarayan - Tunga Investment - Analyst : Thank you, sir, and come back in queue.

Question: Tushar Vasuja - Yogya Capital - Analyst : Hello sir, I hope I'm audible. Sir, first question is on market size. So was the market size for safety, shoes, leather, gloves and garments, both domestic and international global?

Question: Tushar Vasuja - Yogya Capital - Analyst : Okay, sir. And one more thing I want to talk about, since the INR1,000 crores revenue that you guys are talking about. So what segments are you particularly looking at the growth to come from?

Question: Tushar Vasuja - Yogya Capital - Analyst : All segments equally, no, segment, in particular, the high growth?

Question: Tushar Vasuja - Yogya Capital - Analyst : Okay, sir. And considering the nature of the industry, you guys might face a lot of competition from unorganized and local players. So can you talk a bit about that?

Question: Tushar Vasuja - Yogya Capital - Analyst : Okay, sir. That's wonderful. I have one more question regarding the pricing of the industry. So, like, what's the pricing scenario, right, like what things can affect your margins? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 30, 2024 / 5:30AM, MLCM.NS - Q4 2024 Mallcom (India) Ltd Earnings Call

Question: Tushar Vasuja - Yogya Capital - Analyst : Okay, sir and what are the raw materials, like major raw material for you?

Question: Tushar Vasuja - Yogya Capital - Analyst : Thank you, sir. That answers all of my question. Thank you.

Question: Rahil Shah - Crown Capital - Analyst : Hello, good morning. Can you hear me?

Question: Rahil Shah - Crown Capital - Analyst : So, you have mentioned earlier one of the last call that the North American market will be doing well from next year onwards. So compared to the Europe market and Middle East as well, how important is it for us, the North American market and how has it been so far in the Q1? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 30, 2024 / 5:30AM, MLCM.NS - Q4 2024 Mallcom (India) Ltd Earnings Call

Question: Rahil Shah - Crown Capital - Analyst : Okay. And I'm sorry to repeat this, but I had some interference earlier when you're mentioning the growth trajectory? So having heard you correctly when you said 15%, 15% growth this year in FY25 with 50 basis point margin increase you can expect and from there on a towards your target of INR1,000 crores, you will grow minimum 25% to 30%. Is that how you're planning?

Question: Rahil Shah - Crown Capital - Analyst : Okay. Thank you so much all the best.

Question: Saket Mehrotra - Tusk Investment - Analyst : Yes, can you hear me?

Question: Saket Mehrotra - Tusk Investment - Analyst : So my question is, you know, how is the Q1 looking for us and what's the trajectory that we're expecting from our exports going forward this year and the year ahead? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 30, 2024 / 5:30AM, MLCM.NS - Q4 2024 Mallcom (India) Ltd Earnings Call

Question: Saket Mehrotra - Tusk Investment - Analyst : Okay. Thank you.