Fiem Industries Ltd Q4 FY22 Earnings Conference Call Insights

Key highlights from Fiem Industries Ltd (FIEMIND) Q4 FY22 Earnings Concall

Management Update:

• FIEMIND recorded its highest ever total income in its history of INR1,575 crores in FY22.

Q&A Highlights:

• Ashutosh Tiwari of Equirus asked about the drivers of revenue growth and if it’s the new OEMs that are contributing. J.K Jain MD replied that it is predominantly the new customers that the company has added over the last couple of years contributing to the growth.

• Ashutosh Tiwari of Equirus asked about the revenue ramp up with Yamaha over the next 2-3 years. Arvind Chauhan CS replied that Yamaha business is growing and FIEMIND has a strong pipeline of new project with Yamaha.

• Ashutosh Tiwari with Equirus enquired about the schedules of production of two-wheelers over the next 2-3 months with OEMs. J.K Jain MD said that in general, the overall trend is optimistic for the year.

• Ashutosh Tiwari from Equirus asked about the capex for FY23. J.K Jain MD answered that there is a large capex being planned at the two plants that are running at optimal capacity. There is a INR30-40 crore capex that will go into Hosur.  And in total about INR50 crore capex is planned for the year.

• Ashutosh Tiwari from Equirus asked about of proportion of LEDs in total light in the next 2-3 years. J.K Jain MD replied that it is heading higher and over the next three years it should inch higher towards 55-60%.

• Ritesh Chheda of Lucky Investment asked about the mix lead growth in light due to rise in share from 39% to 44% in LEDs and the volume growth. J.K Jain MD said that all new products under development in last 3-6 months, most of them are LEDs. LED is about 2 times of the conventional. It’s more about value growth.

• Jyoti Singh of Arihant Capital Markets enquired about the other expense rising almost 50% QonQ and if FIEMIND is doing any cost control. Arvind Chauhan CS said that on the other expenses, there is nothing specific the company is doing on cost control.

• Jyoti Singh of Arihant Capital Markets asked about the company’s future debt profile and the how much FIEMIND is planning to repay. OP Gupta CFO clarified that by 2022 end the company will be totally debt free company. Also FIEMIND is not planning for any debt increase or any future debt.

• Saurav Datta asked about the percent of the revenues coming from EVs in 4Q22 and the percentage in 3Q22. J.K Jain MD said that FIEMIND is having very big customers and is very big part in its revenue contribution. As EV two wheeler sales increase, FIEMIND sales will also increase. Last year it was around INR40 crores.

• Anika Mittal from Nvest Research asked about the current capacity utilization level. J.K Jain MD clarified that there is no one specific number as it’s depended on product mix. It’s probably close to 78-80% right now.