Key highlights from Xpro India Limited (XPROINDIA) Q4 FY22 Earnings Concall
Q&A Highlights:
- Himanshu Parmar asked about the material capacity expansion in dielectric capacity of films taking 2-4 years and if the process has started. C Bhaskar MD said the first phase is double capacity at Barjora, followed by a second phase either at Barjora or another location, which will span to 2-4 years.
- Himanshu Parmar asked about capex of dielectric films business and coex business. C Bhaskar MD replied that the capex is high in the case of the dielectric films business and the capex is lower in the case of the Coex business.
- Suraj Navandar of Sampada Investments asked about current capacity utilization levels in both divisions. C Bhaskar MD said that in the Biax division the capacity utilization is 100% plus. On the Coex division, it’s subject to seasonal variances.
- Suraj Navandar of Sampada Investments enquired if the company is planning to focus more on Biax division or Coex division. C Bhaskar MD replied that the company will be focusing on both divisions. Biax expansion is talked more about as it’s more capital intensive.
- Suraj Navandar of Sampada Investments also asked if the company has any revenue share target for Biax and Coex division. C Bhaskar MD answered that the company intends to add two more lines, which would give a quantum jump in revenue. Therefore, it might be a 50:50 revenue share for both divisions.
- Vishal Prasad of VPE Capital asked about the export opportunity for dielectric division. C Bhaskar MD answered that XPROINDIA is exporting a little bit in US, and Germany. 7-8% of the output is exported by the dielectric films division.
- Srinath asked about the timeframe of first line coming up in dielectric division. C Bhaskar MD answered that the company under global competitive circumstance, won’t put a date on when it will start. But XPROINDIA added that it’s not behind on any of its plans yet.
- Vaibhav Jain of iThought PMS asked why in the BOPP segment XPROINDIA is the only producers in the country. C Bhaskar MD clarified that the success parameters are very critical and it’s a very difficult and specialized process, the parameters, the recipes, all takes time to develop.