PG Electroplast Ltd (PGEL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (JM Financial Institutional Securities Limited): Ladies and gentlemen, good day and welcome to PG Electroplast Q2 FY27 earnings conference call, hosted by JM Financial Institutional Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shalin Choksi from JM Financial Institutional Securities Limited. Thank you and over to you, sir.
Shalin Choksi (JM Financial Institutional Securities Limited): Thank you, Anam. Good morning, everyone. On behalf of JM Financial Institutional Securities, I welcome you all to the Q2 FY27 earnings call of PG Electroplast Limited. We have with us the management of the company represented by Mr. Vishal Gupta, Managing Director, and Mr. Pramod Gupta, Chief Financial Officer. Before we start
Vishal Gupta (PG Electroplast Ltd): a brief disclaimer. This presentation has been prepared for information purposes only and does not constitute a prospectus, offering circular or offering memorandum, and is not an offer or initiation to buy or sell any securities, nor shall part or all of this presentation form the basis, basis of or to be relied on in any connection with a contract or investment decision. This presentation contains forward-looking statements based on the currently held beliefs of the management of the company which are expressed in good faith, and in management's opinion are reasonable. The forward-looking statements may involve known and unknown risks, uncertainty and other factors which may cause the actual results, financial condition, performance or achievements of the company or industry to differ materially from those in forward-looking statements. These forward-looking statements represent only the company's current intentions, beliefs or expectations, and any such statement speaks only as of the date on which it was made. The company assumes no obligation to revise or update any forward-looking statements. With this, I will hand over the call to the management for their opening remarks, post which we can open the floor for question and answers. Thank you and over to you, Mr. Gupta. Thank you, Shalini. And good morning, everyone. Thank you for joining PG Electroplast Q2 FY '27 earnings call. I'm Vishal Gupta, the Managing Director,
Vishal Gupta (PG Electroplast Ltd): and I am joined today by Mr. Pramod Gupta, our CFO and Mr. Vikas Gupta, our Managing Director Operations is also joining this call. Second quarter has panned out on expected lines and we have seen good secondary sales in the room AC business for the industry, resulting in a strong order book for us also. Our teams are gearing up for strong execution in second half of FY '27. For the first half of FY '27, consolidated revenues crossed INR 2,950 crores for the first time in the company's history. And the room AC and washing machine verticals posted their highest-ever first-half sales. Growth in first half came from combination of volume and price. We saw double-digit volume growth and a similar quantum of ASP increase as commodity costs and rupee depreciation got passed through to our customers. Our order book remains healthy across all product lines. I will let Pramod ji take you through the numbers in details and then I will come back to cover our capacity road map and few other operating priorities for the current financial year. Pramod ji.
Pramod Gupta (PG Electroplast Ltd): Thank you, Vishal ji. Good morning, everyone. Consolidated revenues for the quarter was INR 934 crores, up 42.5% year-on-year. EBITDA came in at INR 69.14 crores versus INR 44.68 crores last year, a growth of 54.8% with EBITDA margin of 7.4%. Net income was INR 13.67 crores versus INR 2.76 crores last financial in the same quarter. For first half, product business has contributed 70.3% of sales revenue, growing 41.1% year-on-year. Within that, AC business saw a growth of 36.2% to INR 1,561 crores. Washing machine crossed INR 500 crores of sales and grew 60.7% for the first half. Cooler was muted at about 4.8% growth and contributed INR 19.3 crores. Electronics business has seen a very sharp growth of 90.3% and contributed 12% of revenues for the first half. And plastic molding and component contributed INR 521.6 crores and was up 7.5% year-on-year. Our JV, Goodworth Electronics, posted revenues of INR 623.8 crores in the first half versus INR 483.4 crores last year. And EBITDA stood at INR 22.7 crores versus INR 10.3 crores last year. Our subsidiary, PG Technoplast, which is obviously a part of consolidated sales, which I told above, reported INR 2,130 crores in sales this quar- this year in the first half. On margin, I want to clarify once again that gross contribution as a percentage have softened on a year-on-year basis, largely because of the pass-through of the commodity prices, particularly copper, aluminum, plastic, et cetera, along with the rupee depreciation. And as you all know, on a per-unit basis, margin remained stable, and we get a fixed amount on a per-unit basis.
Pramod Gupta (PG Electroplast Ltd): not the percentage margin for doing the contract manufacturing. On balance sheet things remain quite healthy. Cash and balance cash and bank balance stood at Rs 422.5 crores and most of the capex for this year is already paid for. Basically, capex payments that are not in gross fixed are either in CWIP or advances to suppliers. With this I will now hand it over back to Vishal ji.
Vishal Gupta (PG Electroplast Ltd): Thanks, Pramod ji. Let me cover some business outlook and our strategy along with couple of other developments for this quarter. Post our flagship washing machine manufacturing facility that came online in new campus in DMIC Greater Noida, Uttar Pradesh last quarter. Our new campus at Salarpur Bhiwadi is now operational, and we are conso- consolidating operations by relocating some of our Greater Noida operations to this new facility. This facility will have coolers, sanitaryware, plastic component and mold-making facilities. Second, on our refrigerator facility at Sri City in South India is progressing well. We are targeting commercial production as earlier committed in the last quarter of current financial year, with this becoming a meaningful revenue contributor for FY28. We have already tied up with our anchor customer, and we are in active discussions with other customers as well with some soft commitments already in place. The facility will have a capacity of 1.2 million units and we will start in Phase 1 with direct cool and side-by-side refrigerator, and add frost-free and multi-door in Phase 2. On compressors also the project at Supa is on track for mass production of in this financial year. Things are progressing well. We expect our first 2 million capacity to come online as planned in this financial year only. Alongside that our strategic priorities for this year are R&D, new product development, backward integration and capability enhancement. This all is aimed at building longer term resilience and improving capital efficiencies. With that we will now open the floor for questions. Thank you.
Moderator (JM Financial Institutional Securities Limited): Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press "*" and "1" on their touchtone telephone. If you wish to remove yourself from the question queue, you may press "*" and "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Tanesh Shah from DAM Capital. Please go ahead.
Tanesh Shah (DAM Capital): Yes. Hi sir. Good morning. Thank you so much for the opportunity. Sir, I have a few questions. First one being we spoke about a double digit volume growth in AC. Maybe, you know, if you can help us understand how the industry sort of grew this quarter on a very unfavorable base versus how, you know, we have sort of done against that.
Vishal Gupta (PG Electroplast Ltd): See, in this quarter the primary sales have been muted, and we don't see much larger very strong growth, but secondary sales, as per the feedback what we are getting from the industry per- people, has been very strong, but again, you know, if you see If you try to compare this with the YoY basis, July you can compare. August, there it was an aberration because of the GST announcement was done, and then in September also, the sales started after 22nd September only. But all said and done, still the secondary sales have been very strong in the channel, and channel inventory is on a much lower side as compared to last year. Yes, second quarter we didn't see much action, but I believe that December quarter and the March quarter will see much better numbers for our company. As per the feedback what we are getting from our client and the kind of order book which we have been able to build up to maybe March, April for ourselves.
Tanesh Shah (DAM Capital): Got sir. And sir, you spoke about, you know, most of the prices being passed on to the customer. So, if you could quantify the percentage of price hikes taken and is it completely absorbed now by our customers or is there another round of price hike which are due from our side?
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