Uravi T and Wedge Lamps Limited has informed the Exchange about Transcript of the Earning Conference Call with respect to the unaudited financial results of the Company for the quarter ended December...
Date: February 17, 2024
To, National Stock Exchange of India Limited
BSE Limited.
Exchange Plaza, C-1, Block G, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 NSE Symbol: URAVI Through NEAPS Portal
Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001 Scrip Code: 543930 Through BSE Listing Centre
Subject: Transcript of the Earnings Call held on February 13, 2024, with respect to the financial results of quarter ended December 31, 2023
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please enclosed attached the Transcript of the Earning Conference Call on with respect to the unaudited financial results of the Company for the quarter ended December 31, 2023, held on Tuesday, February 13, 2024, at 4.00 P.M. (IST).
The transcript of the conference call can also be accessed at the website of the Company at
https://www.uravilamps.com/financial-results.html
We request you to take the same on your record. For
Uravi T and Wedge Lamps Limited
Kaushik Damji Gada
Whole-time Director & CFO
DIN: 00515876
Place: Mumbai
Enclosed: Transcript of the Earnings call held on February 13, 2024
“Uravi T & Wedge Lamps Limited
Q3 FY ’24 Conference Call”
February 13, 2024
Disclaimer: E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchanges — BSE Limited and National Stock Exchange of India Limited and the Company website on 13th February 2024 will prevail.
MANAGEMENT: MR. NIRAJ GADA – CHAIRMAN, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER -- URAVI T & WEDGE LAMPS LIMITED MR. SIDDHANT GADA – URAVI T & WEDGE LAMPS LIMITED
MODERATOR: MR. KAUSHAL SHINDE – KIRIN ADVISORS
Page 1 of 13
Moderator:
Ladies and gentlemen, good day and welcome to the Uravi T & Wedge Lamps Limited Q3 FY24
Uravi T & Wedge Lamps Limited February 13, 2024
Earnings Conference Call hosted by Kirin Advisors. As a reminder, all participant lines will be
in the listen-only mode. There will be an opportunity for you to ask questions after the
presentation concludes. Should you need assistance during this call, please signal the operator
by pressing star and then zero on your touch-tone phone. Please note that this conference is being
recorded.
I now hand the conference over to Mr. Kaushal Shinde from Kirin Advisors. Thank you and
over to you, sir.
Kaushal Shinde:
Thank you. On behalf of Kirin Advisors, I welcome you all to Uravi T & Wedge Lamps Limited
Q3 FY24 con-call. From management side, we have Mr. Niraj Gada and Mr. Siddhant Gada.
Now, I will hand over the call to Mr. Niraj Gada. Over to you, sir.
Niraj Gada:
Good afternoon, everyone. I warmly welcome each of you to the conference call of Uravi T &
Wedge Lamps Limited, where we are set to explore our outstanding performance during Q3
FY24. Before we dive into the specifics of Q3 and 9 and FY24, let me provide a brief overview
of our company and its business model.
Uravi, I'll refer the company as Uravi, stands as a leader in automotive lamp manufacturing
supply sector, showcasing unparalleled expertise in crafting incandescent and wet-based lamps,
operating under the brand name of UL. We are committed to delivering tailored solutions for
both OEMs and aftermarket. Our diverse range of automotive lighting products includes
stoplight, taillight, indicators, wet-based lamps, reflectors, and some LED headlamps, LED
taillamps.
With an extensive distribution network spanning India, we actively pursue global expansion
opportunities through strategic partnerships with our LED lamp filament manufacturers in China
and Philippines. These collaborators underscore our commitment to delivering cutting-edge
solutions to our customers. As a notable achievement for us, being recognized as one of the
largest manufacturers of automotive lamps for instrument clusters, that is, speedometer, and we
proudly hold the second-largest position in automotive signalling and parking segments for
OEMs, may not be in India, but may be in Asia.
In FY23, the company reported total revenue of INR34.62 crores with EBITDA of INR5.52 and
profit after tax rate of INR0.87 crores. Given the rising Indian automotive component industry
poised to become the world's third largest by 2024, our outlook is very optimistic with the
component sales to domestic OEMs surging by around 46% and to reach INR27.27 billion. We
anticipate the industry revenue to hit a remarkable about US$200 billion by 2026, providing
Uravi with abundant opportunity for growth in all the segments.
Navigating this dynamic landscape, our strategic positioning emphasized on innovation and
comprehensive product portfolio ensures that we are well prepared to capitalize on high
development prospects in all vehicle industry segments. This commitment positions us to thrive
in the evolving automotive landscape, ensuring sustainable growth and success for our company.
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Uravi T & Wedge Lamps Limited February 13, 2024
Regarding the financial highlights of Q3 FY24 and 9M FY24, it is evident that Uravi has
demonstrated remarkable resilience and strategic provenance. In Q3 FY24, the company's total
revenue witnessed a substantial upswing, reaching INR11.53 crores, demonstrating its
adaptability in ever-changing business environment. Despite a slight dip in EBITDA to INR1.61
crores, EBITDA margin at 13.94 and profit after tax to INR0.38 crores with a PAT margin of
3.32%.
Looking ahead to second half of FY24, Uravi's optimistic outlook is grounded in its strong Q3
performance and strategic initiative geared towards industry dominance. The company's
consistent growth and financial stability position is favourable for continued success in the
dynamic market landscape. Turning our attention to 9M FY24, Uravi's impressive total revenue
of INR30.95 crores, up from INR26.55 crores in 9M FY23, underscores sustainable growth. The
increased EBITDA of INR5.18 crores coupled with an EBITDA margin of 16.52% reflects
sound financial management.
The profit after tax for 9 months financial at INR24 is at INR1.58 crores with a PAT margin of
5.04%, signifies profitability. The earning per share has risen from INR1.11 in 9M FY23 to
INR1.44 in 9M FY24. It is noteworthy that the company has not only exceeded its profit after
tax from INR0.87 crores to INR1.58 crores in the first 9 months of FY24, but has also showcased
remarkable growth.
In essence, Uravi's outstanding financial achievements during this period coupled with its
strategic endeavours underscore its unwavering commitment to excellence. As relied upon
supply to tier-one partners of all major OEMs, Uravi remains the preferred choice, emphasising
its dedication to providing top-quality products in the market. Before we move on to the question
and answer session, I want to express my sincere gratitude to all our stakeholders for being an
integral part of our growth journey.
Your support and involvement has played a crucial role in our success, and we genuinely
appreciate your valuable contributions. With this, I would like to open the floor for questions
and answers. Thank you once again for your presence and continued support.
Moderator:
Thank you. We will now begin the question and answer session. The first question is from the
line of Khushbu Kaur, an individual investor. Please go ahead.
Khushbu Kaur:
Hello? Could you just tell us what is the dedication period for the product development to
actually sell off the new product?
Niraj Gada:
Sorry ma'am, I am not able to hear your question very clearly. Can you please repeat your
question? Thank you.
Moderator:
Sorry to interrupt. Khushbu, you have some background disturbance. Hello? Yes, please go
ahead.
Niraj Gada:
Yes.
Khushbu Kaur:
What is the gestation period for the product development to actually sell off the new product?
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Uravi T & Wedge Lamps Limited February 13, 2024
Niraj Gada:
Like, to be specific, like gestation period for?
Khushbu Kaur:
For the new product.
Siddhant Gada:
Like what new product? Hello?
Khushbu Kaur:
Hello? Yes, sir.
Niraj Gada:
I am not able to understand your question, ma'am. You are referring to some new product. So,
the new product is in terms of lamp or automotive other…
Khushbu Kaur:
Bulks, sir. Bulks.
Niraj Gada:
Bulks. See, these lamps are coming under safety protocol. So, we are not allowed to design a
specific lamp because all lamps are approved by ARAI and the same lamp has to be fitted in all
automotives.
So, designing aspect is not included in automotive lighting industry. Only the flexibility is given
to OEM vehicle manufacturers who can design their lights but the lamp used and current and
light output is always fixed. So, there is no new product which we need to develop now.
Khushbu Kaur:
Okay. And sir, what is our sales from OEMs?
Niraj Gada:
What is our…?
Khushbu Kaur:
Sales from OEMs.
Niraj Gada:
So, whatever figure is I think 2.5% is only sales from aftermarket. Rest all sales is OEM.
Khushbu Kaur:
Okay. Thank you.
Niraj Gada:
Thank you.
Moderator:
Thank you. The next question is from the line of Yashwanti from Kojin Finvest. Please go ahead.
Yashwanti:
Thanks for the opportunity. Continuing with the earlier question, I just had a question. Like
whenever there is a change in the model for any automobile you supply, I mean the Tier 1
supplier of any automobile, so is there any likely changes we need to make? So, do we have
something called a life cycle of the product?
Niraj Gada:
Thank you for your question. Now whenever a new model is to be launched, OEM starts the
project maybe somewhere around six months before or one year before but each -- once the
design is final at OEM level -- once design is final, then OEM will give it to Tier 1. And as I
said, lighting part never changes. Only there may be change in the lighting module like design
of it but inside lamp, bulk remains the same.
Yashwanti:
Okay.
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Uravi T & Wedge Lamps Limited February 13, 2024
Niraj Gada:
So there is no. The bulbs has a life cycle depending upon the lumen and wattages prescribed as
per the EC regulations which starts from speedometer is somewhere around 1,000 hours to tail
lamp somewhere around 500 hours to 100 hours.
Yashwanti:
Okay. Currently, who is the other key competitor in the industry?
Niraj Gada:
Before this LED replacement came, we had Philips and Osram as our competitors. But since
whatever incandescent lamps which are being usedee, Uravi is mainly focused on two-wheeler
industries. All our customers are major two-wheelers where incandescent lamps are much
proven and they will be there till maybe 2030 or 2032.
So, Philips and Osram were not able to compete on this low-value products because of two-
wheeler industries. So, they were the only competitors before. Now, I think there is only one
major manufacturer in northern part of India and other part is Uravi.
Yashwanti:
Okay. So, is it possible for you to name the competitor which is existing in the northern part of
India?
Niraj Gada:
Specific name we cannot share, but there is only one is there.
Yashwanti:
Okay. So, the following question is in this scenario…
Moderator:
Ma'am, sorry to interrupt but the line for you is not very clear. Please use the handset mode,
ma'am.
Yashwanti:
It's on handset only. Am I clear now?
Moderator:
It's still sounding muffled, ma'am.
Yashwanti:
Is it clear now?
Moderator:
It's slightly better. Please go ahead.
Yashwanti:
Yes. So, in that case, what is our market share in the industry? This is the one question. And the
second, have we started approaching into the two-wheeler EV manufacturers?
Niraj Gada:
I'll answer your first question. Currently, Uravi's market share in the total two-wheeler OEM
industry is somewhere around 50%, you can say. For speedometer cluster, our market share
should be somewhere around 85%. And indicator lamps and stop lamps, we can consider our
market share somewhere around 50% to 55% of the total market. Your second question was
related to EV. Can you just let me know again?
Yashwanti:
EV two-wheeler manufacture.
Niraj Gada:
So, we will not be manufacturing EV two-wheelers, but Uravi is certainly developing some
products for EV two-wheelers which are under development stage with OEM because we will
not be able to tell which OEM and which vehicle, because it's still under the development stage
and that vehicle is going to be launched in later part of this year or maybe next year early.
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Uravi T & Wedge Lamps Limited February 13, 2024
Yashwanti:
Okay.
Niraj Gada:
So, Uravi is going to manufacture some kind of EV component which would be accepted by
each and every EV manufacturer in India.
Yashwanti:
Okay. That is really great, sir, to know that you are entering into the EV segment also.
Niraj Gada:
Yes, it's going to come and I think we will be able to announce the same shortly in coming
future.
Yashwanti:
Okay. Sir, can I ask you one more question? What is our current capacity and the capacity
utilization?
Niraj Gada:
If you go through this investor presentation which is already shared, as an average, Uravi has
three plants. One is on Bombay-Nasik Road near on Kalyan Highway and two plants are there
in Jammu. Average capacity utilization at present is somewhere around 58% to 60% you can
consider after this additional orders what we have received from September.
Yashwanti:
Okay. Sir, are we getting any benefit for having a presence in Jammu-Kashmir area?
Niraj Gada:
Initially, I think two years back, before GST came, excise -- four years back, we had an excise
benefit there. Now, we have a local benefit, but Jammu has a low energy cost compared to
Mumbai and other parts of India. So, energy cost is the biggest advantage there.
Yashwanti:
Okay. Sir, your guidance on the margin profiling going ahead?
Niraj Gada:
Sorry?
Yashwanti:
Your guidance on the margin profiling going ahead?
Niraj Gada:
Yes. See, now this quarter, we did get a -- we were able to increase our top line, but
simultaneously, being a festival month, like Diwali and all, there were some obligations which
had to be met on company's part.
And since our order book was increased suddenly after 19th September, 2023, we had to import
a lot of things by air and simultaneously, we had to deliver by air to our customers. This was
very much unexpected. So, that has hit our bottom line. Yes, the profit. So, I think next quarter,
I am expecting a very -- I am very much optimistic about this PAT and EBITDA margin.
Yashwanti:
Okay.
Niraj Gada:
It's going to be much higher than what is now.
Yashwanti:
Okay. So, what range we can expect and will you be able to maintain even going forward for
FY'25?
Page 6 of 13
Niraj Gada:
So, what I can see is since we had a very small time to ramp up the production and stabilize raw
material, which we did from September till January 31st, now I think all of our supply chain is
quite stabilized. So I am expecting a very good growth. You can expect around maybe...
Uravi T & Wedge Lamps Limited February 13, 2024
Yashwanti:
Sir, I can't hear you.
Niraj Gada:
Sorry. Are you able to hear me? Hello?
Moderator:
Excuse me, sir. The line for the participant seems to have dropped from the queue.
Niraj Gada:
No problem.
Moderator:
We will proceed with the next question. Next question is from the line of Anannya Swaminathan
from T Square. Please go ahead, Anannya.
Anannya Swaminathan:
Thanks for the opportunity. Sir, what is the market outlook for our products?
Niraj Gada:
Market outlook for our products? So, market outlook like in India, approximately 1.5 million to
2 million two-wheelers are being made every month, out of which currently maybe about
100,000 are EV and 1.9 million are normal. Getting an average of maybe about 1.5 million you
can say per month is a fixed average. And each vehicle is approximately fitted with about 12
lamps. And we will be having about 50% market share for this. So, was that your question or it
was in some different format?
Anannya Swaminathan: No. This is what exactly I asked for. That's great. And are there any long-term contracts or
agreements with key customers?
Niraj Gada:
Yes, because since we are an approved OEM supplier and all the lamps which are being used by
OEMs are approved with ARAI. So, OEMs are also tied up with Uravi lamps. So, they have to
use Uravi lamps because in the drawing and all, it is all -- so, you will find specific model will
be used by Uravi lamps only.
So, OEM will use Uravi lamps only for specific models. So, these are always a long term. Even
the new model will come, they will mention Uravi name in their drawing and it would be used
as long as that model is running. So, that way you can say it's a long-term tie-up only.
Anannya Swaminathan: Great. And any growth and expansion strategy you can share?
Niraj Gada:
We are going forward with some EV chargers and products which we are going to launch soon
in near future. That would be for some specific OEMs. We have already developed them. So,
that would be our expansion.
And in automotive lamps, as you can see, our top-line is already increasing. And I am expecting
for next quarter also, we are going to increase this top-line further more. And naturally, the
profitability will also increase in that synchronized.
Anannya Swaminathan: Okay. And do you plan any international expansion?
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Uravi T & Wedge Lamps Limited February 13, 2024
Niraj Gada:
Currently, we are already having a tie-up with companies in China and Philippines for LEDs.
And we may see some development there for LED manufacturing unit with technical
collaboration somewhere near in Vietnam. But it is still not sure. But we are exploring that
possibility as well.
Anannya Swaminathan: Okay, great. Thank you so much.
Niraj Gada:
Thank you.
Moderator:
Thank you. The next question is from the line of Ritika Ji, an Individual Investor. Please go
ahead.
Ritika Ji:
Hi, sir. Thank you for the opportunity. Sir, can you brief us about your product portfolio or any
plan to expand or diversify the same?
Niraj Gada:
Product portfolio for automotive lamps, we do manufacture speedometer lamps. We do indicator
lamps, signalling lamps, and tail lights. So, all kind of for two-wheelers and three-wheelers.
Simultaneously, Uravi is manufacturing LED filament lamps which are being used in homes.
Uravi is also manufacturing LED speedometer lamps and LED indicator lamps as well for
aftermarket purpose, not for OEM purpose. These are our automotive lamp portfolios.
Ritika Ji:
Okay, sir. Okay. And, sir, what is our current capacity and capacity post-expansion? What is the
current capacity utilization?
Niraj Gada:
So, as I said earlier, if you take an average of all our three units, we do have a capacity utilization
of somewhere around 58% to 60%. And we have already done the expansion and we are
expecting some more orders and once that is being done, then we will be utilizing about 75% of
our capacity.
Ritika Ji:
Okay, sir. Okay. And what are the steps management is planning to take to improve profitability
margin?
Niraj Gada:
So, first thing is we increased our sales, which you can see the top line is increased. Secondly,
we are trying to increase this top line further more in coming two quarters, which I think we will
be doing so. We have done expansion. We have already streamlined our supply chain, which
was due to this sudden increase in order, we had a lot of cost escalation in terms of transportation
and all, which now is under control.
So, I am expecting a very good profit for next quarter and which will be increasing because the
product is being stabilized and customers are now regularizing those products very much. So, I
am very much optimistic for March '24 and coming two quarters as well.
Ritika Ji:
Okay, sir. Okay. Thank you so much, sir.
Niraj Gada:
Thank you.
Moderator:
Thank you. The next question is from the line of Vaibhav Shah from Kojin Finvest. Please go
ahead.
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Uravi T & Wedge Lamps Limited February 13, 2024
Vaibhav Shah:
Yes. Thanks for the opportunity. And, sir, I have four or five questions related to our expansion
and business verticals. So, first of all, I just want to know in last call, you had talked about our
EV charging for expansion plan. So, currently, what is the status of the product development
and by when we can see the commercial production for that and what will be the capex needed
in terms of our manufacturing facility and in general, what will be the manufacturing plan?
So, are we doing to manufacturing on our own or we are going to outsource it or how is it?
Niraj Gada:
Thank you for the question. As I had informed already that EV charging prototype is already
being developed and it is under the final stage. We are expecting the same to be tested in next
quarter by OEMs and once it is approved, the commercial production, what we are thinking is
going to come on the second quarter of '24, that will be somewhere around July, August '24.
The commercial production will start. Uravi is the currentlyhave already invested in some areas
in as a technical collaborator for EV and we will be manufacturing it with that collaborator in
India only. The details which will be shared at the due course of time.
Vaibhav Shah:
Okay, okay. So, is this going to be a greenfield project or already with don't give the name or
exact thing but just wanted to understand it is going to be a greenfield project or some
collaboration in terms of like they are having the manufacturing capabilities and are we going
to develop along with them?
Niraj Gada:
It would be a sort of mixed bag. Many things have been included or introduced by Uravi. The
company which is going to manufacture will be a part and parcel of Uravi only. And we will be
jointly manufacturing the same and lot of because you know we need to have many, many things
as per OEM standard which has been introduced by Uravi and accordingly it would be going to
be manufactured jointly.
So, it would be a mixed bag. It would be a new company as well. A new manufacturing facility
but simultaneously would be technically collaborated by Uravi in some terms.
Vaibhav Shah:
Okay, okay. And what kind of capex are we envisaging for this?
Niraj Gada:
The capex is, since as I told you lot of things have been already introduced by Uravi to that
company -- that company's capex and Uravi will be simultaneously joining. So, we are looking
somewhere around the testing facilities and some manufacturing facilities the capex would be
somewhere around INR 2 to INR5 crores.
Vaibhav Shah:
INR2 to INR5 crores. And what if you can provide what will be the number of units in terms of
charges and everything we can produce from there? From this capex?
Niraj Gada:
The current market size is somewhere around 100,000 units are being made per month that is
the market requirement. Out of which organized unorganized you may say unorganized segment
is somewhere around 50% and organized segment is somewhere around 50%.
So, it would be around 1.2 million market per year. So, first year Uravi is trying to produce and
sell somewhere around 5,000 pieces per month. So, only 60,000 pieces that's what is our first
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Uravi T & Wedge Lamps Limited February 13, 2024
year target and we do have a capacity to produce somewhere around 40,000 units per month
there.
Vaibhav Shah:
Okay. So, yearly we can say we can produce somewhere around 5 lakhs units once the
production and everything is stable.
Niraj Gada:
No, no, not 5 lakhs. 5,000 units per month that would be around 60,000 units for first year. And
then we will be able to produce about 250,000 units per year and at the same time we will be
doing more capex and increasing the capacity to 500,000 units in that year only.
Vaibhav Shah:
Got it. And, sir, in terms of these chargers it's only going to be a manufacturer let's say these
chargers will be the set which will be going out with the manufacturer's kit. Like it will be a part
of the 2-wheeler, 2-wheeler which will be sold along with the charger which will be sold along
with the 2-wheeler. Is the understanding correct?
Niraj Gada:
Yes. It is called as off-board charger. It will come along with your 2-wheeler.
Vaibhav Shah:
Okay. So, we are not going to have some kind of the DC charger or fast charger network which
we -- which lot of player and oil manufacturing companies are also planning. So, we are not into
that.
Niraj Gada:
We will be doing fast chargers as well but these are the mobile chargers. You can take these
chargers along with you while you are driving your 2-wheeler and you can charge it anywhere
you want. These are off-board chargers…
Vaibhav Shah:
Got it. And, sir, just coming back to your current business so, earlier to my colleague you said
somewhere around –
Moderator:
You are not audible at the moment. Hello.
Vaibhav Shah:
Hello. Can you hear me now?
Moderator:
Yes. Yes. So, we request you to please repeat the question.
Vaibhav Shah:
Yes. So, earlier in a reply to my colleague you said around 90%-95% plus revenue is coming
from the OEM. So, in terms of product mix what will be the largest product? Headlamps or
speedometer lamps or what will be the largest segment for you?
Niraj Gada:
See, now in a one 2-wheeler there are six speedometer lamps and four indicator lamps and there
is one lamp which is similar to speedometer which is fitted above your number plates. So, you
can say around six lamps in speedometer and two other lamps are the same speedometer type of
lamps are used in one vehicle and four lamps are used in -- as an indicator.
So, the quantity-wise speedometer lamps are more compared to indicator lamps. But the value-
wise indicator lamps are more than speedometer lamps. So, in one vehicle if you consider say
we are giving a speedometer lamp which may be eight and four indicator lamps the value-wise
indicator lamps are much higher than the speedometer lamps.
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Uravi T & Wedge Lamps Limited February 13, 2024
Vaibhav Shah:
Got it. And when we see in terms of your manufacturing so manufacturing process for both will
be kind of a similar?
Niraj Gada:
No, some process will because speedometer lamps doesn't have a metal cap they come with a
chip kind of thing which you have to insert in the holder and then the current is provided to the
lamp to glow. While indicator lamps are fitted into the module where we have to give them a
metal cap same like in your housing lamp when you have a cap, it's something like -- so, the
process for manufacturing is different for both of them.
Vaibhav Shah:
Got it. And in terms of capacity, what will be the capacity for both? I just want to understand
that can we, manufacturing both of them on the same line or different production line is required?
Niraj Gada:
Different production line for both -- the processes is different, the production lines are different.
Vaibhav Shah:
Okay, okay, so simultaneously both can be manufactured?
Niraj Gada:
No, speedometer lamps cannot be produced on indicator lamps and indicator lamps cannot be
produced on speedometer lamps.
Vaibhav Shah:
Got it, that I got it so, but we can produce both the things at the same time for one…
Niraj Gada:
Yes, yes since both are independent functioning lamps we can produce both separately.
Vaibhav Shah:
Okay, okay. So, in terms of the number of, not give the names or OEMs, but in terms of models
in how many two wheelers are, lamps are used if you can give a ballpark…
Niraj Gada:
If you except Honda, all other OEMs are using OV lamps Honda is not using at present because
Honda has single source supplier policy which they are changing so we are expecting to get
Honda orders by next year because OEM process of approval is somewhere around 6 months to
12 months we have already initiated the process, so by next year we will be we are expecting to
get approval from Honda as well, other than Honda all OEMs are using our lamps
Vaibhav Shah:
So, most of the all two wheelers will be having some of our lamps?
Niraj Gada:
Yes, yes, of course, except Honda
Vaibhav Shah:
Okay, be it a bike or a scooter.
Niraj Gada:
Yes, yes, of course
Moderator:
Thank you. The next question is from the line of Shweta Rathod, an Individual Investor Please
go ahead.
Shweta Rathod:
How is our dealer distribution system, sir?
Niraj Gada:
I think Mr. Siddhant Gada is taking care of this Siddhant, can you answer this question? Dealer
distribution network
Page 11 of 13
Siddhant Gada:
Yes, so I think before the start of this year we were majorly present in the Northern market and
Uravi T & Wedge Lamps Limited February 13, 2024
specifically in the [inaudible] market but what we have done this year we have expanded our
dealer network and we have targeted the Eastern market. So we are present in West Bengal We
are there in Jharkhand. We have strengthened our network in the South as well. We have
increased the number of distributors in Karnataka. We have started supplying in Kerala. We
have appointed a distributor in Tamil Nadu…
Yes, so as I was saying before the start of this year we were majorly present in Mumbai and in
the Northern part of India. What we have done this year is that we have expanded our network.
We have introduced our bulbs towards the Eastern part of India. We are present in Jharkhand.
We are present in West Bengal. We have appointed a few dealers and distributors in Odisha. We
have appointed a few more distributors in Karnataka, Tamil Nadu, Kerala. We have covered a
lot of parts of Maharashtra as well. So you can just somewhere around 40 to 50 distributors and
dealers we have appointed this year
Moderator:
We have the next question from the line of Vaibhav Shah from Kojin Finvest. Please go ahead.
Vaibhav Shah:
Yes, hi, thanks for the opportunity again. Just wanted to understand, sir there was a slide deep
in the EBITDA margin at quarter level and also that continued in the PAT margin also. So what
was the primary reason for that and what is the sustainable margin that we can maintain at
EBITDA level?
Niraj Gada:
Thank you for the question. I will answer this question. There was a typical thing happened with
Uravi on 19th of September where couple of OEMs suddenly increased our schedule from 20%
to 80% our SOB has increased and when this thing happened, we had to use resources and import
material by air and then deliver the same by air also.
So whatever even after increasing our top line there was a slight depressed EBITDA because of
the same reason, if you can see the percentage wise the cost of material consumed, you can see
there is a difference of INR20 lakh-INR30 lakh percentage wise. So, this was all affected because
of our increase in cost of stabilizing our supply chain.
There were couple of new products which were we had to develop at a very high cost and which
were not giving us a profit, but since we had 80% of market SOB from that OEMs, we had to
absorb that high cost as well in our profit. So all these things need little bit time to stabilize. So
I am expecting a very good March '24, the exact presumption I cannot say right now but it would
be much, much bigger than what you are seeing in this quarter
Vaibhav Shah:
So on the normalized level can we maintain an EBITDA of let's say 18%-20%?
Niraj Gada:
I am expecting a little bit conservative somewhere around 17%-18%.
Vaibhav Shah:
Fair enough.
Niraj Gada:
For March. Later on it would improve and we will try to reach up to 20%, which would be very
easy at that time
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Uravi T & Wedge Lamps Limited February 13, 2024
Vaibhav Shah:
Okay, just to continue on the previous question from another participant, we were discussing
about the dealer distribution network. So sir, can you please repeat that because the line got
disconnected for this, so can you just elaborate more on what's your dealer network in terms of
current presence and what we are planning?
Niraj Gada:
Yes I think Siddhant will take on sure Siddhant, hello?
Moderator:
Siddhant sir, sorry sir, the line for Siddhant just disconnected, I will just reconnect with him
Niraj Gada:
Yes please.
Vaibhav Shah:
Sir, in the meantime, can I ask you another question?
Niraj Gada:
Yes, please let me know.
Vaibhav Shah:
Sir, when the your charging EV charging setup is stabilized and everything, so what kind of
revenue growth we are expecting let's say for FY '25 so for FY '25 I think you will be having
this charging setup for around 6 to 8 months depending upon when you start the production so
from FY '25 '26, what kind of revenue growth we can envisage, don't give the exit number…
Niraj Gada:
I can just tell you, you can you can do the calculation, the one EV charger is somewhere sold
from INR15,000 to INR19,000, that would be the individual cost for the EV charger, we are
targeting to make somewhere around 5000 pieces per month for the coming financial year.
Vaibhav Shah:
That number is your production plan that you have explained in my previous question. So
INR15,000 to INR19,000 it's unit cost.
Niraj Gada:
Yes, that would be the selling cost.
Vaibhav Shah:
Okay and what kind of EBITDA margin will be having in that, if you can provide some?
Niraj Gada:
That would be difficult, but I can tell you that it has got a comfortable EBITDA margin.
Vaibhav Shah:
So better than the current product mix yes.
Siddhant Gada:
Yes
Vaibhav Shah:
Okay, thank you.
Moderator:
Thank you. We have no further questions ladies and gentlemen. I would now like to hand the
conference over to Mr. Kaushal Shinde for closing comments over to you sir
Kaushal Shinde:
Thank you very much everyone for joining the conference call of Uravi T & Wedge Lamps
Limited. If you have any queries you can write to us at info@kirinadvisor, once more thank you
everyone for joining the conference.
Moderator:
Thank you. On behalf of Kirin Advisors that concludes this conference. Thank you all for joining
us, you may now disconnect your lines.
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