Q1 2027 Pricol Ltd Earnings Call Transcript
Key Points
- Revenue from operations grew 23.46% year-on-year, aided by strong industry growth and new product introductions.
- PAT grew 34.34% year-on-year, with EPS at INR 5.50 per share.
- The company outperformed the two-wheeler industry, growing 28% versus the industry's 23%.
- New business wins across verticals, including first orders for switches from Suzuki and disc brakes for a major Indian OEM.
- Management maintains a long-term revenue target of INR 8,000 crores by FY2031, with a steady-state EBITDA margin target of 12.5-13%.
- EBITDA margin declined to 11.41% due to headwinds from the West Asia crisis, including higher polymer and LPG prices, freight costs, and minimum wage increases.
- The company faces continued pressure on profitability from a weak rupee and rising raw material costs, including memory control devices impacted by AI-driven demand.
- Polymer business growth is constrained by capacity limitations, with new capacity only maturing in 9-12 months.
- The demerger process is expected to take at least four quarters, potentially longer, creating operational uncertainty.
- Management has paused M&A activities for the next year, which may limit inorganic growth opportunities.
Ladies and gentlemen, good day and welcome to the Pricol Limited Q1 FY 2027 Earnings Conference Call. (Operator Instructions) I will now hand the conference over to Mr. Purvangi Jain from Valorum Advisors for opening remarks.
Thank you. And over to you.
Thank you. Good afternoon, everyone, and a warm welcome to you all. My name is Purvangi Jain from Valorum Advisors. We represent the investor relations of Prickol Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the first quarter of the financial year 2027. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the
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