Carysil Limited Q3 and 9 Months FY24 Earnings Conference Call February 01, 2024

• Our focus on increasing capacity utilization in the quartz sinks category has been steady, with progress reaching 70% by the end of 9 months FY24 and expected to increase further on a quarter-on-quarter basis

• We expanded our capacity by adding 90,000 units in the last quarter, bringing the total to 1,80,000 units. The demand in this segment remains strong, with capacity utilization of 67% of the quarter ended 31st December 2023

• Our performance in the US and the UK market continues to be strong. The destocking process concluded and inventory is returning to its normal levels

• We expect better operating margins in the coming quarters due to various actions taken by improvement in, material sourcing, and business expansion

• Howdens is the Number 1 trade kitchen supplier in the UK. It has 750 depots. It has 27 granite
  models. They sell 10,000 kitchen sinks per week. That’s 500,000 kitchens per annum. Their gross revenue is 3.3 billion pounds with approximately 20% EBITDA margins. That has been a great feather on the cap for our UK team. And we also have received the first order from them

• It’s exciting to inform you that we have initiated the sale of appliances from our new manufacturing setup. By March 2024, our state-of-the-art facility, capable of producing 1 lakh units annually will be fully operational

The performance is unsatisfactory, as gold isn’t contributing to growth in AUM or revenue, possibly due to intense competition from banking entities.

The current market scenario does rhyme so much with your post . What makes it scarier? Promoters reducing their stakes in these so-called inevitable companies…so basically outsiders see a much brighter future for the company than the promoters who are in the business 24/7 so promoters said okay you may have it then XD.

Titagarh

Suzlon

This too explains the scenario well –
Credits – @Worldlywiseinvestors

Are these 6 Railways PSU Stocks in a Bubble??

The main point regarding Market coupling in the Circular

7. The Commission received an overwhelming response on the Staff Paper, with
   a total of 127 stakeholders submitting their comments and suggestions. The list of
   stakeholders is available on the Commission’s website.
8. The Commission has examined the comments and suggestions received on
   the staff paper. The Commission notes that stakeholders have provided a mixed
   view on most of the issues raised in the staff paper. Those in favour of market
   coupling have advocated its benefits mainly in terms of improved competition,
   increased volumes, lower transaction costs, ease of operation, better services, check
   on monopoly, better transmission corridor allocation, integration of cross-border
   power markets, and that it will pave the way for reforms, like MBED, SCUC, and the
   introduction of financial derivatives. On the other hand, the stakeholders arguing
   against market coupling pointed out the disruption that may be caused by market
   coupling, the role of power exchanges getting diminished as a bid collecting agency,
   the dampening effect on innovation & technology investments, the adverse effect on
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   competition, no improvement in transmission infrastructure utilization, the addition of
   another layer in the form of Market Coupling Operator (MCO) and the resultant
   increase in transaction costs, adverse impact on smaller traders’ businesses,
   violation of power exchange licence conditions, etc. Besides, some of the
   stakeholders, like PXIL and the World Bank, shared the results of the simulations
   done to support the need for market coupling under the prevailing market conditions.
9. After carefully examining the suggestions received from the stakeholders, the
   Commission felt the need for more evidence-based results to decide on the potential
   benefits that coupling may accrue to the market participants and the power system
   as a whole. Accordingly, the staff of the Commission carried out several simulations
   using bid data from power exchanges to study the impact of market coupling on
   volume, prices, and economic surplus, as stipulated in PMR 2021. For the purpose
   of the analysis, bid data from IEX and PXIL for the Real-Time Market (RTM) for 40
   days in 2022-23 was considered where bids, including cleared and uncleared bids,
   were available on both trading platforms. The analysis for the Day-Ahead Market
   (DAM) pertains to the months of January, February, and March 2023. A brief
   summary of the results is as under:
   i. The coupling of power exchanges enables the clearing of some uncleared buy
   and sell offers. For example, in RTM, there were times when supply and/or
   demand bids were received on one exchange but could not be cleared. When
   the bids of the two exchanges were coupled, the cheaper sell offers on the
   said exchange were cleared and replaced the high-price sell offers of the
   other exchange. Additionally, some high value buy offers were also cleared
   after coupling. This led to an increase in the economic surplus.
   ii. In the instances where coupled MCP was below the uncoupled MCP on the
   dominant power exchange, the overall consumer surplus increased. The
   maximum increase in volume in RTM was approximately 250 MW. In most
   instances, the economic surplus increased by less than 1% in RTM.
   iii. In DAM, the coupling of power exchanges led to an increase in economic
   surplus by less than 0.013%. However, in certain time blocks, an increase of
   up to 3% was also observed. The maximum increase in volume was
   approximately 230 MW (3% of that time block), and the maximum decrease in
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   volume was 100 MW (2% of that time block). The total increase in volume for
   the months of January, February, and March 2023 was ~9 MUs (0.08%
   increase). The average MCP also increased by 0.3 paisa/kWh (0.06%), and
   volatility was reduced by 0.050 paisa/kWh (0.02%). The number of times the
   MCP touched the price cap was observed to remain the same over the
   analysis horizon.
10. Based on the results of simulations for coupling in DAM and RTM, it emerges
    that there is a possibility of uncleared bids (buy and sell) getting cleared in a coupled
    scenario. However, the overall gains in terms of increase in volume and economic
    surplus may not be significant. The peak time blocks witnessed an increase in
    economic surplus in a coupled scenario, but over a longer time horizon, the gains
    remained insignificant. Further, the impact on MCP and volatility varies across
    different time durations depending on the elasticity of demand and supply curves.
    The Commission finds these results broadly in conformity with the largely accepted
    view that under the prevailing market structure, where one dominant power
    exchange holds about 99% market share in DAM and RTM, merely coupling bids of
    all the power exchanges will not yield substantial improvement in market outcome.
11. Notwithstanding the results of the simulations, the exercise undertaken, and
    the comments of the stakeholders revealed some insights that the Commission felt
    were worth taking forward. The insights were in the form of – the need to increase the
    depth of the market, the scope for further optimization of system cost, and the need
    to enhance power system reliability and flexibility through appropriate market design.
    The Commission feels it imperative to bring in more participation in the market,
    which would not only improve supply availability and encourage competition amongst
    suppliers but also facilitate a platform for optimizing the resources. While the
    coupling of bids in the present market structure marginally contributes towards this,
    other alternatives need to be explored in pursuit of increasing market depth, system
    and cost optimization and grid reliability.
12. The current power market is visibly a demand-driven market, as we have
    witnessed in the recent past. Thus, to increase the depth, commensurate supply has
    to be necessarily brought in to fully utilize the efficiency gains of the market platform.
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    Resource adequacy framework is being evolved to ensure the adequacy of supply to
    meet demand in all time horizons reliably and at the least cost. But this will take time,
    and as such, the Commission feels it is expedient to explore all options to optimally
    utilize the existing capacity. Currently, most of the generation is tied up in long-term
    purchase agreements. While the efforts to bring these contracts to the market are
    underway through various policy and regulatory measures – for instance, by
    requiring the generators to bid their un-requisitioned surplus (URS) into the market,
    defining transmission allocation principles accordingly – there still remains last mile
    scope for optimization after all trading options for a specific time block/duration have
    been exhausted