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Another subdued quarter with significant reduction in revenue, margins and profitability. Overall revenue down 35%, EBIDTA down 70% and PAT down 85% YoY.
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Revenue for Fluorochemicals segment was hut most with decine of more than 50% YoY.
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Bulk Chemicals: Caustic soda/MDC prices were impacted further during the quarter but expected to have bottomed out. Expecting better H2 as compared to H1
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Fluorochemicals: Volume and prices are impacted significantly due to weak demand in US and domestic. China dumping resulting is significant lower price realisation. Ref Gas volumes are expected to improve going forward however may remain subdued compared to FY23 due to impact of phasing out in US and aggressive Chinese pricing.
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Flouropolymers: China dumping, lower demand particularly in Europe and destocking resulted in significant impact on the Business. H2FY24 is expected to be better due to expected phasing out of destocking, pickup in the demand in US and positive impact of exit of legacy players.
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Battery Chemicals: Expected to commission by 2024. Asset turnover expected to be 2x with capex of 600-800 cr. Margins expected be 30%
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Outlook: H2FY24 expected to be better than H1FY23 with recovery in key segment of Fluoropolymers . FY25 is expected to be better than FY23. Margins expected to be 30%+ in FY25.
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Market have not reacted very badly as it should had been due to sharp fall in all matrices. This may be due to FY2025 with revenue and profitability expected to be better than FY2023. Important to see sequencial recovery from Q3 onwards
Posts in category Value Pickr
Gujarat Fluorochemicals: A hidden fluorine story (07-11-2023)
VP Group Navi Mumbai (07-11-2023)
Interested. There will be other investors who are not in the forum who may like to join.
HBL POWER SYSTEMS: Booting-up for the Race of the Century (07-11-2023)
Valid question. I would ask you to be patient and let them deliver a few quarters of consistent results. Also it is my perception that the management may not have actively engaged with any institutional buyers to create visibility about the business. In fact in the last call, their MD had words of caution about the stock price. Disclosure: invested.
Stylam- Decent Fundamentals with Cheap Valuation (07-11-2023)
Is company not having concall for Q2 this time ? Need to understand the guidance on sales growth as seems company has consistently underperformed on sales growth for last 2 Qs with respect to the initial guidance
Som Distilleries and Breweries (07-11-2023)
I believe that maintaining the same level of optimism and confidence in such turbulent times is what differentiates an investor from a speculator. Kudos to you!
Also, It isn’t the first raid for the company and isn’t the last either, everyone knows why places are raided right before the elections, after all cash plays a vital role in every election.
Varun beverages fast growth duopoly business (07-11-2023)
VBL Q3 CY 23 Key take aways from con call:-
- 45% capacity expansion over CY 23 before start of season next CY
- The reason for doing better than 12 million FMCG outlets vs 3.5 million VBL outlets is, More room for penetration vs FMCG, FMCG have matured, basic infrastructure has improved in terms of power supply, roads and logistics as a result more and more vizi coolers have been installed, Prices have been reduced to capture Indian market to offer value preposition with volume.
- Sting continues to do exceptionally well, Sting blue is also a very successful launch and doing great.
- A subsidiary in Mozambique has been opened as the International market is opening up really well.
- Dairy business is doing well and will pick up well in the next season.
- July 23 was a washout because of unseasonal rains.
- Capex of around 2500 crs with a asset turnover 1.8 times.
- Dairy and Juice’s margins are similar to CSD, but they will not be significant in the total portfolio.
- Congo is 35-40 million cases capacity
- Many sugar free drinks on the cards to be launched next season
Krishca Ltd : A SME offering steel strapping Solution (07-11-2023)
krishca.insights.pdf (1.1 MB)
Important Points to be noted-
1.Packing Contracts-
Successful Contract with Shyam Metallics Ltd
Securing a Pivotal Contract with PSU – Steel Authority of India (SAIL)
2. Overseas Subsidiary (2)
Singapore
UAE
3. Doubling the capacity of steel strapping – Fully Operational by January 2024.
4. Dveloping a mobile application for our sales team, providing them with all the necessary data, documents, and resources to serve our customers better.
5. As per MD – “Our margins have experienced a slight 1% dip in comparison to the previous financial year. This decrease can be attributed to our current phase of aggressive growth and expansion, a strategic move we believe will yield significant long-term benefits. We anticipate that our growth will continue to thrive, with expectations of a substantial 35% – 40% growth rate.”
Natco Pharma: Focusing On Complex Products (07-11-2023)
Thank you Harsh for pointing to FDA site and other valid points posted.
Natco Pharma was considered to be good on corporate governance.
Now not declaring this development of US FDA inspections and observations there of, while there is a declaration of no observation on inspection of their corporate facility makes me wonder if we need to suspect their corporate governance. I am seeing this as a red flag.
Only other possibility i can see that FDA published this information in their site as @harsh.beria93 gave the link, but Natco yet to receive formal notice. What is the chances of that?
Or what else could be reasons for not having disclosure to exchanges. Seeking expert opinion.
Disc: Now only holding a single share for tracking purposes.
Transpek Industry limited (07-11-2023)
Management AGM did sound conservative. However, was not expecting such results. Having said that, broadly, decline in exports sales (my assumption) due to demand slow down in US may have adversely impacted sales during quarter. I hope same get recover quickly. My expectation would be moderate improvement in Q3 and Q4 and then normalise business in FY25. Let us wait for Con call to get more details and understadning of business.
ValuePickr USA @ Eastern Time Zone (07-11-2023)
Hi Hitarth,
I am based in Providence, RI. I will be happy to connect. I am currently in India but would be available for future meets.