CARYSIL Limited , a leading manufacturer of quartz and steel sinks, has reported robust financial results for the first quarter, while also announcing ambitious growth plans for its domestic market.

Q1 Financial Highlights

The company's total income for Q1 increased by 12.3% year-on-year to ₹227.30 crore. CARYSIL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant jump of 19.2% to ₹44.10 crore, with EBITDA margins expanding by 112 basis points to 19.4%. The company's Profit After Tax (PAT) after Minority Interest showed an impressive growth of 43.9% to ₹22.80 crore.

Strategic Growth Initiatives

CARYSIL has set an ambitious target of achieving ₹500 crore in domestic revenue over the medium term. To support this goal, the company has outlined several strategic initiatives:

1. Dealer Network Expansion: CARYSIL plans to significantly increase its market penetration by expanding its dealer network across India. The company has already grown its dealer base to over 4,000 dealers.

2. IKEA Partnership: The company has secured a global supply deal with IKEA, excluding the U.S. market. To support this partnership, CARYSIL will invest approximately ₹20 crore in moulds, machinery, and infrastructure.

3. Capacity Utilization: The company is experiencing strong OEM demand for steel sinks and is currently operating at 75-95% capacity utilization across its product lines.

4. Brand Development: CARYSIL is focusing on strengthening its brand presence in the domestic market to drive growth and enhance profitability.

Management Commentary

Chirag Parekh, Chairman & Managing Director of CARYSIL, commented on the company's performance and outlook: "We are pleased with our performance in Q1, with total income increased by 12.3% YoY to ₹227.30 cr. EBITDA margins expanded by 112 bps to 19.4% on a YoY basis due to the stabilisation of raw material and freight costs, along with our ongoing initiatives for cost improvement and increased capacity utilisation."

He further added, "We are working out on robust business plan to increase our domestic business from current level to ₹500 cr over the medium term to strengthen our position in domestic market. These strategic initiatives reaffirm our commitment to sustainable growth, operational excellence, and delivering long-term value."

Outlook

With its strong financial performance, strategic partnerships, and focus on domestic market expansion, CARYSIL appears well-positioned for growth in the coming years. The company's investments in capacity expansion and brand development, coupled with its global partnerships, are expected to drive its performance across multiple markets.

As CARYSIL continues to execute its growth strategy, investors and industry observers will be watching closely to see how the company progresses towards its ambitious domestic revenue target of ₹500 crore.

Carysil Limited , a manufacturer of kitchen sinks, appliances, and related products, has made significant strides in both financial management and business expansion, as revealed in recent company disclosures.

QIP Fund Utilization

The company has submitted its monitoring agency report for the quarter ended June 30, detailing the utilization of funds raised through its Qualified Institutions Placement (QIP). ICRA Limited, the appointed monitoring agency, reported no material deviation from the stated objectives of the issue.

Key points from the report include:

• Carysil raised Rs 125.00 crore through the QIP in July, with net proceeds of Rs 121.65 crore after issue-related expenses.
• The funds were utilized as follows:
  • Rs 7.11 crore for capital expenditure on machinery and equipment
  • Rs 31.25 crore for working capital requirements
  • Rs 27.90 crore for general corporate purposes
• The remaining Rs 47.98 crore of unutilized funds are deployed in fixed deposits with HDFC Bank, earning returns of 6.60% to 7.40%.

Business Expansion with IKEA

In a separate announcement, Carysil Limited revealed plans to further expand its business relationship with IKEA Supply AG (Switzerland). This development builds upon their strategic partnership initiated in August 2020 for manufacturing and supplying composite quartz kitchen sinks for IKEA's global requirements.

Highlights of the expansion include:

• Carysil has secured an award following participation in IKEA's Global RFQ (Request for Quotation).
• The company has entered into a Purchase Agreement with IKEA Supply AG.
• Carysil plans to invest approximately Rs 20.00 crore in additional moulds, machinery, and related infrastructure.
• This investment aims to cater to IKEA's global (non-U.S.) requirements for quartz kitchen sinks.

The expansion underscores Carysil's commitment to strengthening its business relationship with IKEA and leveraging its manufacturing expertise to serve global markets.

These developments showcase Carysil Limited's strategic approach to financial management and business growth, positioning the company for continued expansion in the global kitchen and bath products market.