KDDL Limited — PPTs, 21-05-2025: Investor Presentation

1. Financial Highlights:

KDDL reported standalone total income of Rs 383.6 Cr for FY25, up 6.5% YoY. However, PBT before exceptional items declined 26% to Rs 58.8 Cr due to product mix changes and slower exports. EBITDA margin compressed to 23.1% from 28.5%. Q4 standalone revenue grew 15% YoY to Rs 102.3 Cr, while PBT dropped 48% YoY to Rs 11.2 Cr. Consolidated total income rose 19% YoY to Rs 1,694.6 Cr, with PBT stable at Rs 189.5 Cr. EBITDA margin eased to 18.1% from 19.5%. PAT after minority interest fell 4% to Rs 97.1 Cr. Balance sheet shows stable assets with increased property, plant & equipment and modestly higher borrowings. Packaging and bracelet units are ramping up, currently at 50% utilization.

2. Strategic Initiatives & Growth Drivers:

Commercial production started at the packaging facility with rapid customer traction, aiming to boost capacity usage. The Steel Bracelets plant invested Rs 44 Cr, targeting Swiss and European watch markets with 75,000 units capacity. KDDL is expanding beyond Swiss watch components into non-Swiss and precision engineering segments focused on aerospace and medical sectors. The Swiss acquisition strengthens its foothold in mid-priced European watches.

3. Business Developments:

Bracelet Division utilization is expected to increase to 70% by FY26, showing encouraging momentum. The Precision Engineering segment offsets export component weakness with robust growth. Stake sale in Ethos added to other income. Watch retailing grew revenues by 25% YoY, indicating strong consumer traction.

4. Market Position & Competitive Advantage:

KDDL leads in watch dials, hands, and components with strong Swiss industry ties and scalable Indian manufacturing. It is among five independent global dial manufacturers and the only Indian player. The Bracelet business is India’s first steel bracelet factory made for Swiss clients, creating product differentiation. Precision Engineering offers design-to-production services in high-tech sectors, enhancing customer stickiness.

5. Investor Implications:

Diversification into packaging and precision engineering alongside capacity ramp-ups offers promising growth potential despite margin pressures. Export market softness and product mix changes warrant monitoring for execution risk. The company’s solid core business and strategic expansion provide a balanced outlook for investors watching watch export recovery and segment growth.