MAYURUNIQ - Mayur Uniquoters ltd. Share Price

The management of Mayur Uniquoters outlined a cautiously optimistic outlook, emphasizing growth in export markets, expansion into Europe, and steady domestic performance. Key points include:

Outlook:

• Export Growth: Targeting increased automotive OEM exports to the US, South Africa, and Europe, with new orders secured for upcoming vehicle models. Expects double-digit revenue growth in FY26.
• European Expansion: Subsidiary in Lithuania to drive entry into European furnishing/general segments, with sales expected to begin in FY26, contributing to incremental growth.
• Capacity Utilization: Focus on ramping up underutilized PU segment (currently at 25-30%) and overall capacity (70%), aiming for higher productivity.

Major Highlights:

1. Financial Performance: Q3 FY25 consolidated revenue rose 17% YoY to Rs.8.39 Cr; standalone revenue grew 12% to Rs.194.94 Cr. Export OEM contributed Rs.39 Cr (20% of total revenue).
2. Automotive Exports: Anticipates strong growth in US OEM sales, targeting Rs.400 Cr in automotive exports over 3-4 years. Current monthly exports to the US improved to ~200,000 meters (from 150,000 previously).
3. New Markets: Actively exploring opportunities in marine and retail segments, with gradual order traction.
4. Domestic Demand: Footwear segment expected to rebound (Q4 target: Rs.50 Cr); domestic OEM/replacement markets to grow alongside auto industry recovery.
5. Tariff Impact: Mexico/CAPEX plans paused for 1 month to assess US tariff implications, but management remains confident in minimal disruption.
6. CSR Initiatives: Highlighted contributions to education, healthcare, and environmental projects, enhancing community engagement.

Management reiterated confidence in sustained double-digit revenue growth, driven by diversified segments and global diversification, while navigating macroeconomic uncertainties.

Question 1 (Bhargav, Ambit Asset Management):
My first question is on the CAPEX that you were planning in Mexico. So, given that there is now a tariff imposition and we were waiting for Trump to come in and give more visibility on this, so what is the plan now sir, if you can share?
Answer: The Mexico CAPEX plan is paused for a month to assess the impact of newly imposed tariffs. Initial analysis suggests minimal effect, but clarity will emerge after a month. The final decision on the plant location (Mexico or another country) will follow this evaluation.

Question 2 (Bhargav, Ambit Asset Management):
In the budget there were very favorable announcements for component manufacturing within the footwear, both leather and non-leather. So, given that we have a PU business, any thoughts on whether this will be positive for us going forward?
Answer: Positive impact depends on policy implementation. Footwear sector growth could boost PU business, but specifics remain uncertain. Current customers include domestic manufacturers in Agra, Kanpur, and Delhi, with limited Bata orders.

Question 3 (Bhargav, Ambit Asset Management):
60% of our exports I believe is to Stellantis, so given that there's no import duty to import from India, do you believe our share in Stellantis can further increase?
Answer: No immediate clarity on tariff advantages for Stellantis. Global automotive industry dynamics and US policy changes complicate predictions.

Question 4 (Ritika, Individual Investor):
How do we see the outlook for export OEM going forward? Have you won any new orders in this past quarter? And given competition from Chinese cars, how do we see exports to the EU and US automakers?
Answer: Export OEM sales (e.g., US, South Africa) are rising, with volumes growing from 150,000 to 200,000+ meters monthly. Chinese competition persists but doesn't hinder growth. New orders for US/RSA OEMs and Lithuania subsidiary expansion signal future growth.

Question 5 (Ritika, Individual Investor):
Regarding PU capacity utilization, what would that be like? Would it be at a similar level of last quarter only or is there any pick up?
Answer: PU segment sales grew 27-28% QoQ, but PBT remains negative. Capacity utilization is 25-30%, with no cash losses.

Question 6 (Siddhartha Kumar, iThought PMS):
You had given a guidance that export revenue would double by FY26. What is the update?
Answer: FY25 automotive exports are projected at Rs.200"“225 crores, delayed due to US elections and holidays. The Rs.400 crore target remains achievable but may take 3"“4 years, contingent on global conditions.

Question 7 (Awanish Chandra, SMIFS Limited):
When can we expect full-fledged bigger business from BMW to start?
Answer: BMW orders (50,000 meters/month in South Africa) are already live. Full-scale India business is expected within three months, dependent on economic conditions.

Question 8 (Garvita, 7Island PMS):
What is the current capacity utilization? What growth guidance can you provide?
Answer: Overall capacity utilization is ~70%, PU at 25"“30%. FY26 revenue growth is projected in double digits, with standalone revenue crossing Rs.200 crores/quarter.

Question 9 (Viraj, Simple Innovative Brands):
What drove gross margin improvement"”low raw material prices or favorable mix?
Answer: Margin gains stem from productivity, export mix, and slight raw material cost benefits, not one factor alone.

Question 10 (Ritika, Shareholder):
What revenue contribution is expected from the Lithuania subsidiary in FY26?
Answer: Lithuania sales (general/furnishing segment) will begin in April 2025. European market growth is expected to increase 10"“15% annually, but exact FY26 contributions are unclear.