Maintain 15–20% Revenue CAGR Guidance Going Ahead: Carysil India | CNBC TV18

Ajouté : 2026-05-21

[00:00:00]Doing extremely well is CarTrade. It was up around 11% post numbers yesterday, up around 2 and 1/2% today as well taking this entire week's gains to mid-teens right now. So, up 2 and 1/2% today if you pull up the last couple of days or maybe this week itself, you will see that the up move has been a fair amount, almost 10 to 15% and it's largely on the back of a good fourth quarter performance. Chirag Parekh who joined us earlier in the month didn't indicate that this year will see a $100 million sort of revenue and that's exactly what has come by. 932 crores is what the company has reported this year so far as far as the revenue is concerned. With that, we welcome him on the show once again. Chirag, always a pleasure speaking with you. Let's talk about what the target for FY 27 is. You keep talking about 15 to 20% but this time around, you know, there is some geopolitical uncertainty. So, give us two numbers. What's the kind of revenue growth that you're targeting and the margins at 18%? Do you see a downside risk due to increased costs, be it freight or any sort of raw material, packaging, etc.?

[00:01:05]Yeah, good.

[00:01:06]So, first of all, thanks for having the show, Palak.

[00:01:09]See, I always say I mean, this is actually not a surprise what we we saw it coming.

[00:01:14]Obviously, I'll be first to touch upon the revenue side. We did crack some great deals across the across globe with some very large players like Lowe's. The last one came on board was Home Depot US.

[00:01:31]IKEA, we've been gaining quite a bit of share. I think there are two large things which is playing here. One is obviously the devaluation of the rupee which is giving us a great leverage as far as to being at the lowest cost producer and getting the edge over the other competition. And I think second is the the way we and my team is able to get the supply chain sorted out and within this geopolitical situation that's the biggest problem is the supplies and I think you know our team has done fantastic job in getting the supply chain in order. So in these times when the versus your competition if you are able to deliver the products at a great price and on time delivery, I think that's where we are getting the edge. We still maintain our revenue guidance of 15 to 20%. I think the market is it's it's you know honestly quite exciting for for us and I had mentioned last time that our West competition the more gas prices the more inflation coming in most of our competition is coming from the west side so that's making our competition weaker and we are getting a lot of traction you know as as far as the orders are concerned. So I think So I think this is point one. On the margin guidance yes, I think that's you know that's the worry which every company has it but you know as you know that we are the only company in the world who has done a backward integration as far as the quartz manufacturing is concerned. So we are manufacturing our own quartz which is when we have to develop in in in you know in India. So that kind of was a tremendous edge for us which quartz approximately is about 70% of the total sale right it could be about 60% of our cost. Our secondly which is MMA uh MMA we call it acrylic resin we've been able to break through with some large players across the globe which not which does not come from the uh here, know the the west west side, so we know We also secured the supply chain also for that. So, I think we are as of now good. The uh we've been third thing that the inflation is coming in, the input input cost is rising, but not to not to that extent. And whatever the input cost increase we have got, we've been able to most of it been able to pass on to our customers. So, we still remain with our margin guidance of 18 to 20%. Moving forward. All right, you remain with your margin guidance of 18 to 20%. Just to uh ask a follow-up on the first part that you said. You said that the weaker currency is a leverage for you. I just wanted to understand what proportion of the revenue that you realize is in non-rupee. I presume it'll be over 80 85%. And how much of that is unhedged?

[00:04:41]So, what's the kind of additional benefit that you get?

[00:04:45]Yeah, so I think approximately it's about 70 uh the whole uh foreign uh foreign currency revenue is about 70 uh 70% of our uh revenue. Uh normally, I think we have a policy which we which we keep it about whenever the rupee gets weakened and we have a trend analysis which we keep on track. My CFO keeps a track. So, about around 40 to 50% we hedge it and the 50% we keep it open.

[00:05:16]Mhm.

[00:05:18]Well, in that case, uh Chirag, growth outlook for the domestic business. Now, what kind of since you're sticking to your revenue growth and your margin guidance for the next year, uh firstly, what is what is what is something that you're targeting for FY28 considering the capacity expansion moves that are underway? And a word on the domestic business as well uh considering how do you expect that to fare? Uh there is no clear trend over the last 5 years when it comes to uh revenue growth. The revenues were down in 25, they went back up in 26. So, where do you see that going?

[00:05:51]Uh, let me just, uh, you know, touch upon the larger picture what I shared last time. Uh, so, we are looking at, I think as far as the Indian operations are concerned, and I was, and I was, I think, very openly and honestly saying we are kind of under performing as far as Indian, I mean, what based on what potential what we have. So, I think we have kind of rolled out just last month in our conference the 500 crore India plan which you want to achieve in less than 5 years, uh, time. So, based on that plan, I think we are dramatically expanding our brand stores across India. So, we are planning about in the next 2 to 3 about 200 of our brand stores which is going to be, uh, which is going to be a franchisee model, which is going to dramatically increase our brand, uh, presence. Secondly, we, we were completely absent on the modern, uh, trade, and now we've been successfully we've been able to penetrate to mostly all the modern trade retailers across India. Uh, third thing we did not have is a B2B vertical. I touched upon that last time, we have engaged a big team on a B2B which is going to tremendously focus on the architects and builders in India, and basically trying to focus on our top 100 builders, architects across India. Fourth, we were completely absent on the online. So, Carysil launched a new online brand called Carissa which has gone tremendously well. Uh, we've been able to clinch big deals, large deals with, uh, the largest e-com players in, uh, in, in India with this brand. So, we So, we see, uh, our growth needle moving quite dramatically, I think, in the next 3 3 years for, uh, for India.

[00:07:32]All right, take that point, Chirag.

[00:07:34]Thank you so much for joining in. The street likes what you have said. Post numbers, we saw a spike in the stock this morning before, you You you started speaking and it sounded so confident, stock was higher, but now as we speak, you know, the intraday comes up for you, spiking once more. The street likes your plan going forward for the company. You hold on to your margin and revenue growth guidance, but at the same time say that any sort of inflation that comes by, you're being able to pass it on and your India target of 500 crore revenue in less than the next 5 years remains you are you know, making strides towards that as well. Good luck. We will continue our conversation, you know, quarterly. With that, we'll take a short break and on the other side, we focus on the bond market action with Manisha Gupta. Alongside that, we also have the management of EPAC Durable this on their performance in the fourth quarter.