Mayur Uniquoters Ltd — Q4 FY25 earnings call

Call held 9 May 2025

Management summary

Mayur Uniquoters reported strong Q4 FY25 results with significant QoQ growth in revenue, PBT, and PAT, driven by robust export OEM orders. The company is optimistic about future top-line and bottom-line growth, particularly in exports, and has clarified that its products are not impacted by US tariffs. However, strategic expansion into Mexico is paused due to tariff uncertainties, and the PU segment faces challenges from Chinese dumping.

Highlights

  • Consolidated revenue from operations for Q4 FY25 was INR250.56 crores, marking a 20% QoQ increase.

  • Consolidated PBT and PAT for Q4 FY25 increased by 34% and 36% QoQ respectively, reaching INR56.95 crores and INR41.50 crores.

  • The company secured good export orders from the U.S.A. for OEM supplies, contributing significantly to top and bottom lines.

  • Management expects overall top-line growth of 12-15% and bottom-line growth of 15-20% for the next 2-3 years.

  • The PU business is showing quarter-to-quarter improvement, with an expected minimum 15%-20% increase.

Concerns

  • Mexico expansion plans are currently on hold for 3-4 months due to uncertainty regarding potential US tariffs on goods exported from Mexico.

  • The PU business segment is experiencing some losses due to dumping from China, although these losses are gradually reducing each quarter.

  • Domestic market demand is described as 'okay' but 'not very high'.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹250.56 Cr
    QoQ +20%
  • Consolidated PBT
    ₹56.95 Cr
    QoQ +34%
  • Consolidated PAT
    ₹41.5 Cr
    QoQ +36%
  • Stand-alone Revenue
    ₹214 Cr
    QoQ +14%
  • Stand-alone PBT
    ₹48.65 Cr
    QoQ +18%
  • Stand-alone PAT
    ₹35.02 Cr
    QoQ +17%

Q4 FY25

  • Other Income
    ₹40 Cr

What they filed

Q1 FY27: revenue up 19.9%, net profit up 43.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue216 195 214 206 238 +10%237 +22%261 +22%247 +20%
EBITDA48 46 45 43 59 +23%58 +26%87 +93%63 +47%
Net profit41 30 35 41 48 +17%53 +77%61 +74%59 +44%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹867.4 Cr Total
  • Export OEM (FY25) ₹253 Cr 29.2%
  • Footwear (FY25) ₹182 Cr 21.0%
  • Domestic OEM (FY25) ₹175 Cr 20.2%
  • Auto Replacement (FY25) ₹142 Cr 16.4%
  • Export General (FY25) ₹91.4 Cr 10.5%
  • Furnishing (FY25) ₹24 Cr 2.8%

Capital allocation

medium confidence
  • Capex Capex disclosed
    Future capex, we have told that we wanted to open a unit in Mexico. But because of this USA problem, we are waiting for another 3 months to see whether the -- what is the outcome. After that, we will decide.

Guidance & targets

Revenue

  • Overall Top-line Growth Revenue · next 2-3 years · High confidence 12-15%
    Yes, you can see, the overall growth in top line, we are expecting 12% to 15%. And bottom line, we are expecting overall growth 15% to 20%.

    — Vinod Kumar Sharma

  • Export OEM Growth Revenue · future · High confidence 25%
    Export OEM guidance? What is the future outlook for export OEM? 25% growth.

    — Vinod Kumar Sharma

  • Export OEM Target Revenue · next 2 years · High confidence INR350 crores
    So our target to go to INR350 crores in 2 years is there, still there? INR350 crores, yes. In the next 2 years? Next 2 years, yes.

    — Vinod Kumar Sharma

Profitability

  • Overall Bottom-line Growth Profitability · next 2-3 years · High confidence 15-20%
    Yes, you can see, the overall growth in top line, we are expecting 12% to 15%. And bottom line, we are expecting overall growth 15% to 20%.

    — Vinod Kumar Sharma

Volume

  • PU Business Growth Volume · future · Medium confidence Minimum 15%-20%
    Minimum 15%-20% will increase.

    — Suresh Kumar Poddar

  • Overall Export Growth Volume · future · High confidence 25% to 30%
    And next year, let's say, overall export, let's say, overall growth is going to become 12%. But how fast the export growth would be -- overall export growth versus the domestic? 25% to 30%.

    — Vinod Kumar Sharma

  • BMW and Mercedes Average Monthly Volume Volume · Q4 FY25 · High confidence 3 lakh meters per month
    On an average, we are doing 3 lakh meters per month at this moment. We will further increase.

    — Vinod Kumar Sharma

What to watch in Q1 FY26

Mexico Expansion Decision

Within 3-4 months
Current On hold due to US tariff uncertainty
Target Decision made (go/no-go)

Why it matters

This decision will dictate future capacity expansion and market reach, significantly impacting long-term growth strategy.

Future capex, we have told that we wanted to open a unit in Mexico. But because of this USA problem, we are waiting for another 3 months to see whether the -- what is the outcome. After that, we will decide.

Risks & concerns

  • Uncertainty regarding US tariffs on Mexican exports

    high

    Mexico expansion plans are on hold for 3-4 months pending clarity on potential US tariffs on goods from Mexico.

    Management acknowledged

  • Dumping from China in PU business

    medium

    The PU business is currently incurring losses due to Chinese dumping, though losses are reducing.

    Management acknowledged

  • Moderate domestic market demand

    low

    Domestic market demand is described as 'okay' but 'not very high'.

    Management acknowledged

Q&A highlights

7 direct
Impact of US Tariffs on China and Mayur's APU Business Direct
We are not affected up till now. Only in PU there is lot a problem of -- they are throwing away material. That's why we are having a little problem. But in PVC, we have no problem at all. China is not competitive to us in PVC leather cloth. They are competitive in PU.

Clarifies the company's exposure to US-China trade tensions, indicating minimal impact on PVC but challenges in PU due to Chinese competition.

Asked by Awanish Chandra

Update on Mexico Expansion Plans Partial
Mexico, you remember that America has said they will impose 20% duty on any material exported from Mexico. So that's what our mind was not settled. Postponed for the time being until and unless is worked out, what is going to be final assessment because you see they are reducing the -- Trump is changing the mind every time. So in next 3 months or 4 months, you should come to know because we have prepared everything as soon as because you see if I manufacture there, then I have to pay the duty.

Reveals that strategic expansion plans for a unit in Mexico are on hold due to geopolitical uncertainties, impacting future growth avenues.

Asked by Bhargav

Reasons for Gross Profit Jump and Employee Expense Fall in Q4 FY25 Direct
Yes. Regarding employment cost, which has come down in Q4 because of we considered provision up to 9 months at a little higher side and actual -- based on the actual cost, which came into the books, which was lesser. That's why this reduction is there in Q4. Because of increase in automotive exports, especially and other exports, general export. This growth in margin has come mainly because of that.

Provides specific operational reasons for margin expansion and cost efficiency, attributing it to export growth and better provisioning.

Asked by Tania Lalla

US Sales and Impact of 10% Tariffs on Indian Exports Direct
We have no effect of this tariff -- change in tariff. Because we are exporting directly from India to U.S. through the port of Mexico. That's it. So therefore, this tariff change is not affecting to us. Our material is not under the category of custom duty tariff in U.S.

Crucially clarifies that the company's specific products are exempt from the 10% US tariffs, mitigating a potential significant risk.

Asked by Viraj

Nature and Recurrence of INR40 Crores Other Income Direct
No, I'll clarify. Basically, this INR40 crores is inclusive of government grants, which we were expecting for last -- it was applied for, for last 3 to 4 years. And that we have received. But for every year, it is not more than INR3 crores. Okay. So it's nonrecurring? Yes.

Identifies a significant portion of other income as a non-recurring government grant, providing clarity on its one-time nature.

Asked by Chirag Shah

Market Share and Competitors in the Indian Leather Segment Direct
Polynova, HR Polycoats and many. But they are not doing the large scale business. They are not even near our 50%. So you have the major market share in India? They are less than 30%.

Highlights the company's dominant market position in India, with competitors holding significantly smaller shares.

Asked by Parikshit Gujrati

PU Business Improvement and Growth Expectations Direct
PU business is improving quarter-to-quarter. Of course, we are losing some amount, but that loss is reducing every quarter. And that is also because of dumping of China. Minimum 15%-20% will increase.

Provides an optimistic outlook for the PU segment, indicating a turnaround despite competitive pressures and projecting significant growth.

Asked by Awanish Chandra

Sales Breakup for FY25 Direct
Yes. Export general, INR91.40 crores; Export OEM, INR253 crores; and Domestic OEM, INR175 crores: Auto Replacement, INR142 crores; Footwear INR182 crores; Furnishing INR24 crores. And others, you can take the balance figure.

Offers a detailed breakdown of revenue across various segments for the full fiscal year, providing granular insight into business drivers.

Asked by Amar Maurya

2 min read 5 chapters

Detailed narrative

Q4 & FY25 Financial Performance Overview

Mayur Uniquoters reported a strong Q4 FY25 with consolidated revenue from operations reaching INR250.56 crores, a 20% increase QoQ. Consolidated PBT and PAT also saw significant QoQ growth of 34% and 36% respectively, amounting to INR56.95 crores and INR41.50 crores. Stand-alone figures for the quarter showed revenue of INR214 crores, PBT of INR48.65 crores, and PAT of INR35.02 crores, with respective QoQ increases of 14%, 18%, and 17%. The company also recorded INR40 crores in other income for Q4 FY25, primarily from non-recurring government grants.

Export-led Growth Strategy and US Market Clarity

The company is actively pursuing a strategy to become a preferred supplier for leading OEMs, particularly in the U.S. and European regions. Good export orders from the U.S.A. for OEM supplies are significantly contributing to the top and bottom lines. Management clarified that their specific material is not subject to the 10% custom duty tariffs imposed by the U.S. on imports from India, and they export directly to the U.S. via the port of Mexico, thus avoiding any tariff impact.

Segmental Performance and Outlook

For FY25, Export OEM contributed INR253 crores, Export General INR91.40 crores, and Domestic OEM INR175 crores. The PU business, despite facing challenges from Chinese dumping leading to some losses, is showing quarter-to-quarter improvement, with management expecting a minimum 15%-20% increase. The company also provided FY25 figures for Auto Replacement (INR142 crores), Footwear (INR182 crores), and Furnishing (INR24 crores).

European Market Expansion and Strategic Delays

Mayur Uniquoters has established a subsidiary company in Lithuania, with trading activities expected to commence soon in the current quarter, aiming to expand into the general and furnishing retail segments in Europe. However, plans for a potential manufacturing unit in Mexico are currently on hold. The company is awaiting clarity on the impact of potential US tariffs on goods exported from Mexico, with a decision expected in the next 3-4 months.

Future Growth Projections and Market Position

Management projects an overall top-line growth of 12-15% and bottom-line growth of 15-20% for the next 2-3 years, driven by increasing order sizes and export momentum. They specifically target Export OEM to reach INR350 crores in the next two years, with an overall export growth of 25-30%. The company maintains a dominant market share in India, with competitors like Polynova and HR Polycoats holding less than 30% of the market.

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