I believe the reference was to Working Capital Loans. See Note 26 in the latest Annual Report as an example.

The short version of my answer is – without any disrespect to the Chairman, I think interest costs have risen simply because interest rates have gone up worldwide – and most definitely in the U.S. I don’t think it mattered whether the reference rate was LIBOR or SOFR. For detailed response, read on.

The interest on most Corporate Loans are charged as Reference + Spread. Earlier, this reference rate was LIBOR. So if LIBOR was 0.5% and the bank decides a spread of 1%, the loan would be quoted at a floating rate of 1.5% (LIBOR being the floating component). Recently, LIBOR has been abandoned and has been replaced by the Secured Overnight Funding Rate (SOFR). More on why LIBOR was abandoned here: What Is Libor And Why Is It Being Abandoned

You can check out recent history of SOFR rates here: Secured Overnight Financing Rate Data – FEDERAL RESERVE BANK of NEW YORK

This clearly show that SOFR rates have moved up from around 0.5% in early 2022 to 6% today. My point is that even if LIBOR was somehow retained in wide global use, interest cost would have gone up because LIBOR will have also risen with the general interest rate increases around the world. Anyway, if it’s any consolation, SOFR forward rates indicates a softnening towards 4% (Source), although it might take a while.

To summarize my personal understanding – any sort of leverage or working capital loan has become quite costly. Energy costs are another reason quoted. All of this aligns with the information from the Management that many of their Competitors aborad had to shut down.

Overall, what is the impact on Ambika?

1. Increase in Interest Costs from 2-5 Crores to 10-12 Crores. Although that’s a sizeable increase, not much can be done by the company. All the firms in the industry will be suffering from the same issue.

2. Increase in Energy costs. According to logic provided in this Hindu BusinessLine article, the increase in Energy costs for Ambika could be as much as Rs. 5 Crores. Again, similarly all players in the industry would be facing the same issue. You can find many articles, including this one, where Indian Yarn Manufacturers are protesting the increase in unit prices and even stopping production.

What can/will Ambika do?

1. The increase in Working Capital cost can be partially or fully offset by passing it on to the customers. I don’t think it’s easy to do that when demand scenario is stagnant. I expect it would be possible once demand picks up, whenever that happens.

2. Ambika is installing Solar Panels to mitigate the rise in energy costs. According to the Chairman, the company has spent 40 Crs. to install Solar Panels that produce 8.33 MW of power and this will provide them with an IRR of around 10 Crs. per year. In gross for the coming year, 63 Million units out of 78 Million units required for production will be via internal energy generation (Wind and Solar power). The future plan is to take care of the entire energy requirement for production through internal energy generation. (See Chairman’s speech from the 40:23 mark)

Ultimately, in my mind, these minor cost increases are short term pains and not long term detriments. Ignore and move on.

Results were muted. Revenue declined. I guess it was expected because loss on the events side of business. Let’s wait to hear mgmt commentary.

Yes ofcourse there is an impact, I meant Basilic’s resukts weee solid despite the strike and despite the fact that over 80% of their business is foreign led and largely skills based.

Phantom on the other hand has a sizable India business too, and so it should be less impacted than Basilic was.

XBRL, PDF, and Excel are all widely used formats for reporting financial information. However, they have different strengths and weaknesses.

XBRL

• Advantages:
  • Machine-readable data
  • Consistent format and structure
  • Efficient processing and analysis
  • Interoperability
• Disadvantages:
  • Requires specialized software to create and read
  • Can be complex to implement

PDF

• Advantages:
  • Easy to create and read
  • Portable and versatile
  • Can be used to include images, charts, and other multimedia content
• Disadvantages:
  • Not machine-readable
  • Can be difficult to search and analyze
  • Not as efficient for processing large amounts of data

Excel

• Advantages:
  • Easy to create and edit
  • Versatile and powerful
  • Can be used for complex calculations and analysis
• Disadvantages:
  • Not machine-readable
  • Can be difficult to share and collaborate on
  • Not as efficient for processing large amounts of data

Comparison table

drive_spreadsheetExport to Sheets

Advantages of XBRL

• Accuracy: XBRL data is machine-readable, which means that it can be easily checked for accuracy and completeness. This is important for regulators, investors, and other users of financial information.
• Consistency: XBRL reports are consistent in format and structure, regardless of the reporting organization. This makes it easier for users to compare data from different companies and industries.
• Efficiency: XBRL reports can be processed and analyzed much more quickly and efficiently than traditional reports. This is because XBRL data can be automatically extracted and aggregated by software applications.
• Interoperability: XBRL reports can be easily exchanged between different software systems. This makes it possible for users to access and analyze XBRL data from anywhere in the world.

Conclusion

XBRL offers a number of advantages over PDF and Excel for reporting financial information. It is more accurate, consistent, efficient, and interoperable. However, it is important to note that XBRL requires specialized software to create and read.

Which format is best for a particular reporting need will depend on the specific requirements of the users. For example, if users need to be able to easily share and collaborate on reports, then PDF or Excel may be a better choice. However, if users need to be able to process and analyze large amounts of data quickly and efficiently, then XBRL may be a better choice.

Indo Count Industries Limited: Record-Breaking Q2 FY24 Performance

Key Financial Highlights:

• Total Income (Q2 FY24): Rs. 1,780 Crs, +13% YoY; (H1 FY24): Rs. 1,033 Crs, +22% YoY.
• EBITDA (Q2 FY24): Rs. 319 Crs, +23% YoY; (H1 FY24): Rs. 114 Crs, +58% YoY.
• PAT (Q2 FY24): Rs. 188 Crs, +30% YoY; (H1 FY24): Rs. 74 Crs, +70% YoY.
• Volume (Q2 FY24): 28.7 Mn Mtrs; (H1 FY24): 48.7 Mn Mtrs.
• EBITDA Margin (Q2 FY24): 18.3%, +420 bps YoY; (H1 FY24): 17.9%, +135 bps YoY.
• EPS (Q2 FY24): Rs. 5.77; (H1 FY24): Rs. 9.49.

Consolidated Balance Sheet (as of 30th Sept 23):

• Net Worth: Rs. 1,941 Crs.
• Net Debt: Rs. 640 Crs.
• Net Debt: Equity: 0.33.
• ROE: 19.4% (Annualized).
• ROCE: 21.7% (Annualized).

Strategic Initiatives:

1. Record-Breaking Performance: Achieved highest-ever quarterly Revenue, Volumes, and EBITDA, surpassing Rs.1000 Crs+ milestone.
2. Volume Guidance for FY24: Revised to 90 – 100 Mn Mtrs.
3. Strategic Vision: Mr. Anil Kumar Jain, Executive Chairman, highlights the distinct strategic vision and enduring strength of capabilities, achieving Rs. 1000 Cr+ quarterly revenue for the first time in the company’s history.
4. Global Leadership: Being the largest global providers of comprehensive bed linen solutions, with a focus on sustainable initiatives and community engagement.
5. Market Expansion: Unwavering focus on expanding market share in both global and domestic markets.

Segmental Highlights:

• B2C & D2C Segments: Strategically moving towards B2C, B2B, and D2C segments with a focus on better margin and value proposition business.
• Global Recognition: GAIAM home collection gaining traction in USA retail stores. Recognition of Domestic Brands Boutique Living and Layers.