Mayur Uniquoters Ltd — Q3 FY25 earnings call

You see, the plan is held up for a month to see how it happens. They have already put 25% tax on Mexico, and Canada also. We are saying that whether it is going to affect us. Accordingly, so far, we studied the details theoretically, it should not affect. But until and unless one month's time everything comes in, real picture we will come to know.

Analyst questioned the status of the Mexico CAPEX given new tariffs, and management indicated a temporary hold to assess the impact, delaying a decision on the plant location.

Asked by Bhargav

No, we do not have cash losses. Still we are PBT negative, but cash loss is not there.

Management clarified that despite a pickup in PU sales, the segment is still PBT negative, indicating ongoing challenges in achieving profitability.

Asked by Ritika

See, as I told you, already we have told that in the last quarter there was this USA elections; second, in December they have holidays for at least two to two and a half weeks everything is closed, so that's why also it is less.

Management explained the reasons for the Q-on-Q decline in automotive exports, attributing it to external factors like US elections and year-end holidays.

Asked by Alisha Mahajan

This year we would be crossing Rs. 200 crores, Rs. 225 crores automotive exports, okay. And next year definitely it will increase further. And we are expecting very good sales performance to automotive and export in next two to three years, so Rs. 400 crores will be achieved in coming years.

Management reaffirmed the long-term target for automotive export OEM, providing a timeline for achieving ₹400 crores, despite Q3 challenges.

Asked by Senthil Manikandan

Yes, marine business, we have taken part in three, four different activations and we are getting good result, and the result is increasing every month. New additional lines we have added and it's given good satisfaction results. When you enter a new business, it's not that suddenly you start getting big business because people have to understand you, they buy first few materials, they see what the result is, then they keep on moving. So, wherever we have sold the material, we are getting the repeated order. And gradually it will increase.

Management provided an update on the nascent marine product business, indicating positive initial results and a gradual ramp-up with repeated orders.

Asked by Rushabh Shah

You see, the increase in glass profit includes everything, not only one thing, that because of one thing it has been increased. It is because of your good productivity, because of your good sales in exports you are doing good, the margin is good. There are so many reasons. It is not that something specific has been done, because of that it is. It is the mix of everything. It's not that because the prices have gone down our profit has increased; it's not like that. Yes, of course, little bit raw material prices have gone down, but with that it is not that big a fact. It's a contribution of all the areas.

Management clarified that gross margin improvement is a result of multiple factors including productivity, export sales, and a slight reduction in raw material prices, rather than a single dominant factor.

Asked by Viraj

We have started just now, just few weeks back. And it's a retail business. The material will go from here, it will reach in one and a half 2 months to two months time. So, the result will start getting from April.

Management provided an update on the newly established Lithuania subsidiary, indicating it's a retail business and results are expected from April, giving a timeline for its impact.

Asked by Ritika

You see, today the world situation is very difficult, nobody is in a position to commit anything. It depends how the world situation moves. Every day from America new directions are coming, everybody is confused, nobody knows. We can only say that whatever business we are doing and whoever is our competitor in our that kind of business, we are there in good position, this much I can tell you.

Analyst questioned if tariffs could benefit the company, but management expressed uncertainty due to the volatile global situation, indicating a cautious outlook despite potential advantages.

Asked by Pulkit Singhal