Mayur Uniquoters reported a significant rise in profits driven by a surge in export OEM sales to the US, offsetting sluggish domestic volumes. The company aims to capitalise on new export opportunities and capacity expansion to sustain growth in a volatile market.
Mayur Uniquoters said its first-quarter performance was lifted by a sharper export mix, even as domestic volumes remained soft. In its earnings call summary published by GuruFocus on August 5, the leather and synthetic materials maker reported revenue from operations up 20% year on year on a standalone basis and 25% on a consolidated basis, with profit before tax and profit after tax rising 41% and 43% respectively. Management said the stronger showing was driven less by volume and more by pricing and product mix, particularly in higher-value OEM export orders from the US.
The company said export OEM sales climbed 39% from a year earlier, reflecting stronger demand and better realisations. According to the call summary, the business has secured new OEM supply orders from the US that are already feeding into sales and profits, with management expecting that contribution to continue for the next 2 to 3 years. A separate note from MNCL Group said export OEM revenue rose sharply and helped improve operating margins, while domestic footwear remained a weaker spot. Management also said it is participating in requests for quotation from European OEMs, though it has not yet won new business there.
Vinod Kumar Sharma, the chief financial officer, said volume growth was only about 2%, with domestic volumes up just 1%, underscoring how uneven demand remains across the business. Arun Bagaria, the whole-time director, said footwear was dragged down by a steep rise in raw material prices, while the auto OEM segment performed better. He also said freight and shipping costs have jumped sharply because of geopolitical tensions, adding to other expenses that rose by ₹9 crore quarter on quarter. Bagaria said the company has asked for price increases, especially in the US export market, but has not pushed them aggressively because of market volatility.
The company is pressing ahead with capacity expansion. Management said a new line at its existing facility is due to start up around February or March 2027 and will add 5 lakh metres a month, with the current financial year’s capital expenditure budget at about ₹50 crore. Capacity utilisation is already running at 75% to 78%, leaving some room for near-term growth, and the company said it is also weighing further expansion, including a possible overseas plant, although no decision has been made. Longer term, management reiterated its target of 10% to 15% top-line growth over the next three years and said it sees sustainable EBITDA margins of around 25% plus or minus 1 to 2 percentage points.
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