Tarsons Products Limited — Investor Meet, 13-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Standalone revenue for Q2 FY '25 reached INR 80 crores, a 21% increase from INR 66 crores in the same quarter last year, signaling a recovery in demand. Consolidated revenue for the quarter was INR 99 crores, with H1 FY '25 revenue at INR 184 crores. The adjusted EBITDA rose to INR 29.8 crores with a margin of 37.2%, while consolidated adjusted EBITDA margin was at 31.9%. However, margins were impacted by provisions related to machinery damage, amounting to INR 6.3 crores, and a shift in product mix due to Nerbe’s lower margins.

**Future Outlook and Growth Drivers:** Management expressed optimism about future growth, emphasizing recovery trends in both domestic and international markets. New product launches and the planned facility in Panchla are seen as key drivers for expanding market share. The Panchla plant, set to commence full operations soon, will enhance capacity and enable participation in larger global bids.

**Order Book and Operational Updates:** The Panchla facility has begun trial production, and while some machinery suffered transit damage, management expects resolution and full operation by FY '26. Engagements in various exhibitions are anticipated to convert inquiries into orders, contributing to revenue growth.

**Analyst Q&A Insights:** Analysts probed various areas, including revenue recovery sources, operational challenges due to delays in machinery, and insights into Nerbe’s performance. Management noted significant recovery in demand from the U.S. and Europe and addressed concerns regarding capital allocation and inventory management.

**Market or Regulatory Updates:** Notable discussions on industry recovery were highlighted, reflecting improvements in order inquiries amid changing customer dynamics post-COVID.

**Strategic Focus Areas:** The company appears focused on leveraging low-cost manufacturing and enhancing product offerings while aiming for sustainable growth within diverse market segments.

**Investor Insight:** The healthy revenue growth and strategic initiatives indicate a favorable outlook for Tarsons Products, suggesting a ‘buy’ position aligned with the potential for further recovery and expansion in the industry.