Company Is Looking At Revenue Of Rs 600 Cr For The TV Business: PG Electroplast Ltd | CNBC TV18

Metroplast is the company on our radar. The summer season, of course, has been scorching heat waves, record-breaking heat waves, AC sales. As our colleague Shilpa just told us, she did an industry wide check. She said that AC sales for the season have been absolutely blockbuster, the best ever in the last three or four years. Now let's get a perspective from PG Electroplast at this and more. Vikas Gupta is MD operations at the company. Vikas, good morning. Great to have you with us here. Thank you very much for your time. So just I mean on the AC side, if you can tell us what is, what are ACS as a percentage of your revenues? And, and now we have some, the season is kind of almost behind us that it's been, it's been one of the best ever. Do you want to sort of give a relook at your full year numbers a little little bit higher? Is it upward drift here or you'd stick with what you told us in late May? Good morning. So definitely the AC sales are looking very robust, very strong. In fact in the first half of calendar year, I think we must be experiencing a growth of upward of 50% as compared to last year. And all of our clients have reported a very strong numbers for sales for the first half. In fact the challenge elementary is almost the position is almost like a stock out kind of position and the the heat wave is still quite intense in the north part of India. So definitely the numbers are looking very good for air conditioners. Air conditioners for the current financial year, we have given a guidance of sales of almost around 1800 to 1900 crores out of 3400 crores which is almost around around 55 to 60% of the sales for us. So AC is looking quite good for the for the for the current financial year and we will not like to revise our guidance of revenue for upward revision. This time we will be reviewing the position. Please understand when we release our guidance, it was already in the late May. So we have already factored in the performance of the first quarter of this financial year. And you're saying that inventory levels across industry are almost I mean out there's no, there's no real inventory out there. Yes, yes, so, so there is always. So still there is some pressure for the dispatches from our certain clients for for the Northern Indian markets. So we are fulfilling those requirements. So definitely the stock pollution is not very good in the channel right now. OK. So, Sir, I mean, can you talk about the expectations from here on on margins and also sort of the factors at play, including your input costs, including of course how you're expecting pricing to, to be in the months ahead? So what's the outlook? So we would like to stick to the guidance of the PAT that we have given in our release of around 200 crores. That is what we would like to stick to right now. Definitely the commodity prices are looking to move and inch up a little bit. We are just keeping a watch on that and we might have to go for a price increase with our clients in coming quarters if this price pressure continues. Alright, I am Mr. Gupta. Good morning and good to see you. And let's focus on the TV business. You know that's going to be another revenue growth driver from here on. The fear is that the TV business itself is a little bit of over capacity. I wanted your comment out there. I think Dixon one of the larger players, they also delivered a degrowth in the past quarter. So that's from where the fear is coming about. I'm reading a sales note and they had mentioned this your comment on it, you don't think so? So Nigel, please understand we are coming with a very small base. Last year when we look at our our sales for televisions which was almost around 350,000 TV's that we sold in last year in our parent company of PG Electronics. So as we have moved our TV business to JV company which is a Goodworth Electronics, we are very confident that we should be able to build on those numbers. In fact, we are looking at a revenue of around 600 crores for TV's from our JV company of Goodworth Electronics. We have already onboarded 4 new clients in the current quarter and we are the kind of order book and the kind of forecast that we have for the upcoming prestige season. It is very promising and we are confident that we should be able to achieve that kind of sales results. OK, that's TV. So broadly tell us have been so in FI 25 we are almost you know down 1/4. What will the big focus be in terms of the revenue break up and going forward are you buying any new segments? So please understand differently. The product business will be a major growth driver for our revenue growth in coming coming financial years for the current financial year as well as we are given a guidance of around 3400 crores for sales in our PG link class. Out of that almost 2400 crores will be coming from the sales of the products which is mainly comprising of air conditions and washing machines. So that is a growth of all around 43% in that definitely we are eyeing for a new new industries and new product categories. We are evaluating with certain opportunities and as and when we are able to mature that we'll be sharing the details with you. So definitely we are looking at our growth pattern to continue for next quite a few financial years. Can you give us a hint on on what new categories? So it will be basically we will be trying to see how we can leverage our current manufacturing capabilities and we will be getting to those products only which align with our current manufacturing infra where the focus will be to see how we can stretch our assets in a in a much better way. So basically trying to see how we can use those capabilities. So ACS, washing machines, TV, TV's, I mean so adjacent areas, right. So I mean you can, you can tell us Mr. Gupta. So I would like to not make any speculation here as and when we are able to have a farm business plan, we will be definitely coming out and making a statement on that. Now I want to ask you about the laptop segment. That could be a potential area right, where you all start making some inroads and looking at the top players. So there some of them are coming up with their own manufacturing facilities or they already have tie UPS. So how do you penetrate penetrate that And I think you have some targets under the PLI scheme as well. So how do you get there? If you could tell us laptops as a percentage of your business, how does it scale up or given an absolute number few 100 crores, how does it scale up laptops only? So basically our PLI scheme for IT hardware other than laptop, there are other other torch categories also like servers and and all in one computers and we are discussing with certain clients. Till now we have not been able to make any substantial progress in that. But definitely there are certain discussions. I think in coming quarters we should be able to have some kind of breakthrough on that and maybe we will be able to utilize that ITPLI also. So we are we are keeping our fingers crossed in certain discussions, let them mature then we will be seeing the detail. So you will have to target the top five or six players, right, because they have around 83 to 85% of the market. So you're looking at penetrating and getting a contract from one of these players since they have 85% of the market, right, Mr. Gupta? So again, I will not like to make any guess on that. I'll tell you what is the issue, Mr. Gupta, because then if you don't penetrate with them, then how do you get to those numbers? But you're saying you have a plan. So we will have to take it at that for now, say if you want to give us a number on laptops, then then it will be helpful. You know, your growth has been phenomenal in the last few years, but now the street is looking ahead that in the next 3-4 years, what could it be like? So that's why I'm asking about laptops, which could be another, you know, revenue spinner for you. So definitely, Nigel, when we enrolled into this IT hardware PLI, definitely the PL. this laptop was one big thing which is still there on that horizon. In fact, other than laptops, as I told you, there are certain other product categories also. We are working on that. So give us some time. We'll be making a statement of that incoming time going to be what next quarter, Sir? What's the time frame we can work with on more clarity basically on how you're looking to build up on the IT hardware, PLI, the categories, the investments and then of course, you know what you're expecting there. When can we get some more clarity on this IT hardware? Maybe next quarter we should be able to make some statement on that and a completely new category also. So by the way, yeah, so the new category that you were speaking about, is it over and above IT hardware? Yes, so we are talking about some other categories as well. So it is not only the IT hardware, there are certain other relied product categories that we are working on and as and then we are able to finalize and make a certain business case, we should be making a release on that first release on that. OK, Alright. We will leave it on that note. Mr. Gupta, good talking to you. Thanks very much. And we are looking forward to the future conversations to get more perspective on some of the newer lines of business that you would be looking at moving on now we are focusing.