Acrysil Ltd Q4 FY22 Earnings Conference Call Insights

Key highlights from Acrysil Ltd (ACRYSIL) Q4 FY22 Earnings Concall

Q&A Highlights:

• Pritesh Chheda from Lucky Investment Managers asked about the quartz sink volume for FY22 and when the capacity will be fully utilized. Chirag Parekh MD said that in FY22, ACRYSIL did total 650,000 quartz sinks. On utilization, in 3Q23 it is expected to touch capacity expansion of 1.2 million sinks.

• Pritesh Chheda from Lucky Investment Managers also asked that the 1.2 million volume, if the company would be able to fully utilize the capacity in FY24. Chirag Parekh MD clarified that as of now, ACRYSIL is going on track. There’s little bit inventory plus minus which is happening because of the supply chain disruption.

• Vinayak Mohta of Stallion Asset asked about ACRYSIL’s right to win in the quartz sink market. Chirag Parekh MD said that in Quartz Sink market ACRYSIL is the lowest player in the world. And ACRYSIL is about 15-20% cheaper and also the quality is very high expected even in competition with the other global players.

• Udit Gajiwala with YES Securities asked if the 1,60,000 capacity that is coming in 1Q23 is on the greenfield. Chirag Parekh MD replied that it’s not on the greenfield; it’s part of the expansion of ACRYSIL’s current plant manufacturing.

• Udit Gajiwala with YES Securities also asked about the export geographic distribution for 2022. Chirag Parekh MD answered that US would be still about 25-30% of market share, followed by UK and Europe another 30%. And then India would be another about 20-25% and then balance 15-20% with rest of Asia and Gulf.

• Udit Gajiwala with YES Securities enquired about the impact of geopolitical situation on the company. Chirag Parekh MD said that there is unrest, but secondary sales have not dropped. It still has great momentum. So as of now, things are on track.

• Udit Gajiwala with YES Securities asked about the margin going ahead for FY23. Chirag Parekh MD answered that overall as a market, 15%, 16%, margin is a great EBITDA margin to have. ACRYSIL’s endeavor will be that and it has a plan in place to improve slowly the margins, close to 18-20%.

• Nikhil Gada from Abakkus Asset asked how the company is seeing the domestic business shaping up for FY23. Chirag Parekh MD answered that in the domestic market, ACRYSIL has witnessed a very strong growth and have never been able to witness such a strong growth in the last few years to the tune of 24% QonQ.

• Nikhil Gada from Abakkus Asset asked about the A&P spend for FY ’22. Chirag Parekh MD replied that the A&P spends for the domestic market was around 5% of domestic sales and only 2% of the total sales.