Key highlights from Mitsu Chem Plast Ltd (MITSU) Q1 FY23 Earnings Concall
Q&A Highlights:
- Nairit Gala of TSG Capital asked about the number of clients added in 1Q23 vs. 4Q22. Manish Dedhia CFO replied that new clients added is about 25 plus in 1Q23 mostly from chemical and pharmaceutical industry only.
- Nairit Gala of TSG Capital asked about the volume growth vs. the price growth in 1Q23. Manish Dedhia CFO answered that prices have increased drastically in last couple of quarters. The volume growth is around 20% against price appreciation of about 20-22%.
- Nairit Gala of TSG Capital enquired about the geographies MITSU is targeting for FMCG. Manish Dedhia CFO clarified that there is a depo only in north and south currently. But added that right now, expansion will come only in the Khalapur Maharashtra plant.
- Rohit Suresh from Samatva Investments asked about the hospital furniture segment and its contribution to the MITSU revenue. Manish Dedhia CFO answered that the company is constantly growing in the segment except in 1Q23, with good contribution from containers. The growth will continue in the approx. 10-13% in the furniture part.
- Rohit Suresh from Samatva Investments also asked about the competitors in the hospital furniture segment. Manish Dedhia CFO replied that right now, the company is competing with the market from China, Germany and other countries.
- Rohit Suresh from Samatva Investments enquired that in the FMCG part, what kind of products MITSU will be focusing on. Manish Dedhia CFO answered that the company will start with lubricants initially and look for better margins.
- Rohit Suresh from Samatva Investments asked about capacity utilization for FY23. Kashmira Dedhia VP Accounts and Finance replied that for 1Q23, the company has 68% of capacity utilization. And the company will try to achieve 75% or plus for rest of year.
- Yashwant Ketkar asked about the working capital cycle, and receivables and inventory days. Kashmira Dedhia VP Accounts and Finance said that currently the growth operating cycle is around 77 days and net operating cycle is about 43 days. Also, this is going to increase going forward as MITSU is expecting a requirement of working capital with high growth in sales volume.