Household Products firm Acrysil announced Q1FY23 Result :
- Domestic business has increased by 117% YoY to Rs. 38 crores for Q1 FY23 contributing 22.2% of the revenue. Company has witnessed substantial demand in domestic market and going ahead, expect momentum to continue in domestic market
- Company Increased dealer network in domestic market from 1,500 to 1,880 dealers during Q1 FY23 and plans to increase by ~3,000 by end of FY23
- Exports business has increased by 25% YoY to Rs. 100 crores for Q1 FY23 contributing 72% of the revenue. Company has strengthened its presence in newer geographies of Australia, New Zealand, Singapore, Vietnam, Gulf countries and other South East Asian countries
- Company’s order to IKEA for supply of Quartz kitchen sinks has been doubled. Production and supplies of additional order started in July 2022
- Capacity expansion of 160,000 units of quartz kitchen sinks completed in June 2022. The total manufacturing capacity now stands at 10,00,000 units p.a. Commercial production commenced from 28th June 2022. Further, board has approved 3 MW Solar plant to be set up in Bhavnagar, Gujarat for captive use. This is in addition to existing 0.44 MW solar power plant
- EBITDA margin for the quarter stood at 20.1%. Margins in core business continue to remain at similar levels as compared to Q4, however, blended margins appear lower on account of consolidation of Sylmar Technology Limited, which had lower operating margins
- Our exports order book continues to be at normal levels with sustained uptick in demand for our products. However, exports sales may witness some moderation in Q2 FY23 owing to macro challenges and revenge travel trends in Exports market. On a full year basis, company will continue to witness healthy growth in overall business
- Owing to stabilisation of freight costs and softening of input costs, we expect to maintain healthy margins and profitability going forward.
Commenting on the Results, Mr. Chirag Parekh, Chairman & Managing Director said, “We have continued to embark on our growth journey despite rising inflation and ongoing geo-political tensions. We have clocked total income growth of 73% YoY & 22% QoQ. Our total income growth was attributed to strong growth in domestic markets and healthy order book in exports market supported by entry into newer geographies. Recent marketing campaigns coupled with increased dealer network has facilitated growth in domestic market while we continue to maintain decent order book for exports. Our partnership with Ikea has further strengthened with IKEA doubling our current supply. Additional production and supplies started in July, 2022.
This extension of order by IKEA is a testament of our commitment to meet scheduled delivery and product quality standards. We are continuously striving towards building new partnerships and tie-ups in International markets. The company has completed capacity expansion of 160,000 units of quartz kitchen sinks and commercial production commenced from 28th June 2022 onwards. This additional capacity shall enable us to serve demand from domestic as well as international market. With our belief of nurturing localization, we have collaborated with famous Bollywood celebrity Vaani Kapoor for branding and promotion activities which has enhanced the visibility and translated into favourable response for our lifestyle kitchen products.
The acquisition of Tickford Orange limited, holding company of its operating subsidiary Sylmar Technology Limited, have strengthened our presence in UK market and opened new channels for selling our kitchen sinks. We are in process on integrating the same and are confident of realizing synergies from the same in coming quarters. At Acrysil, we believe that with our vast product range, recent acquisition, additional capacity and enhanced focus on domestic sales, we are confident of maintaining growth momentum in the business. We believe in innovating and providing differentiated products to our end customers. Our endeavour is to make Acrysil an undisputed leader in lifestyle kitchen products and conquer newer geographies.”