Sonam Limited – Investor Presentation Summary

Key Operational Highlights

  • Manufacturing facility located in Morbi, Gujarat with installed production capacity of approximately 72 lakhs p.a. for clocks and 240 lakhs p.a. for clock movements.
  • Products sold under brand names Sonam, ampm and Lotus.
  • Strong distribution network with 150+ distributors and 35,000+ retailers across India.
  • Backward integration with in-house manufacturing of clock movements since 2012.

Key drivers of operational performance: In-house production of clock movements, diversified product portfolio, and strong distribution network.

Segment-wise Performance

  • Clock Segment: Manufacturing and sale of analog wall clocks, designer and decorative clocks, alarm clocks, and LED digital clocks.
  • Calculator Segment: Manufacturing and marketing of "Check & Correct" calculators with 12-digit display, step-check functionality, and dual power options.

Explanation of significant changes in segment performance: Not Specified

Financial Highlights

Revenue: Rs. 19,596.41 lakhs

EBITDA: Rs. 1,194.68 lakhs

PAT: Rs. 675.73 lakhs

EPS: Not Specified

Margins: EBITDA margin 6.07%, PAT margin 3.43%

YoY/QoQ comparison: Revenue increased 183.10% YoY, EBITDA increased 121.31% YoY, PAT increased 203.92% YoY

Drivers of financial performance: Significant growth in scale and profitability of business

Comparison to market estimates: Not Specified

Key Risks: Not disclosed

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

Domestic: Not Specified value, percentage breakdown provided by Indian states

Export: Not Specified value, percentage breakdown provided by countries

Regional Breakdown:

Domestic India: Kerala (15.39%), Tamil Nadu (14.58%), Gujarat (10.46%), Rajasthan (10.34%), Maharashtra (10.26%), Uttar Pradesh (10.00%), West Bengal (8.00%), Karnataka (7.00%), Madhya Pradesh (3.61%), Andhra Pradesh (2.39%), Jharkhand (2.02%), Odisha (1.42%), J&K (1.33%), Telangana (1.16%), Chattisgarh (1.04%), Punjab (1.00%)

International: Iraq (37.86%), Turkey (11.58%), UAE (10.16%), Nepal (9.90%), Sri Lanka (8.00%), Bangladesh (6.28%), Cameroon (3.43%), Saudi Arabia (3.40%), Jordan (3.04%), Nigeria (2.93%), Uganda (2.01%), Mali (1.32%), USA (0.11%)

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Current Assets ₹7,530.62 lakhs, Current Liabilities ₹4,530.45 lakhs

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Total equity ₹7,824.29 lakhs, Total liabilities ₹5,716.60 lakhs

Capex & Cash Flow Health

Capital Expenditure: Purchase of Fixed Assets ₹62.48 lakhs

Free Cash Flow: Not Specified

Operating Cash Flow: Net cash outflow from operating activities ₹720.69 lakhs

Net Debt Movement: Long-term borrowings increased to ₹752.52 lakhs from ₹360.00 lakhs, Short-term borrowings increased to ₹2,272.54 lakhs from ₹1,762.65 lakhs

Investment Rationale: Focus on operational efficiency, product quality, and market expansion

Strategic & R&D Initiatives

Investments in Innovation: Proprietary quartz movement moulds developed in line with "Make in India" initiative

Expected impact on growth: Not Specified

Strategic Rationale: Enhancing operational capabilities through backward integration and quality management systems

Industry Trends & Business Environment

Macro/Industry Trends: Not Specified

Impact on Company: Not Specified

Management Commentary & Growth Outlook

Strategic Outlook: Focus on strengthening product portfolio, enhancing operational capabilities, maintaining financial discipline, and identifying opportunities for long-term business growth

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified