NCC will source meters, set up the required infrastructure including installation of the meters, operate them for the mentioned number of years and handover to discoms, while getting paid by them all along (I don’t know much about how this will be funded, the monthly or annual revenue & margins for this project)

Genus will also do the above but they won’t buy meters as they produce it themselves and hence may have slightly better margins. Additionally, they will also supply such advance meters for pure EPC companies like NCC, GMR Infra etc

can anyone please help me clear a basic doubt,

Suppose silicon has 1 computer of 30k with 3 years of life and a straight line depreciation with 0 residual value. So every year in silicon books 10k is a cost + employee expense and operating expense. Lets say total cost is 13k now if I give this computer on rent then silicon should be charging more than 13k to be profitable???

if they are charging 13k then why is they person who is renting paying more when he can simply purchase the asset and depreciate at 10k??

now counter to this is the buyer might be differing high fixed cost and on that deferred cash flow he is generating returns which is more than the premium to depreciation which he is paying.

again then another doubt comes up if the buyer had purchased the asset then in accounting he would depreciate in 3yrs so residual value would go to zero but he can still sell the computer and make money which would be profit, so the I dont save much even with differing cost and paying rent from buyer perspective.

it comes down to the point that why is the buyer renting when buying would have lower dep hence renting is reducing the buyer P&L.

please if somebody can explain

Dhanuka Agri Q1 concall, latest management interview highlights –

Revenues- 369 vs 392 cr
Gross Margins @ 32.8 vs 32.7 pc
EBITDA- 44 vs 51 cr, margins @ 11.8 vs 13.1 pc
PAT- 33 vs 49 cr

Q2 is their biggest Qtr

Q1 was affected by delayed monsoon till Mid June

Demand scenario and product off take in July was good

Aug again was subdued due deficient rains but first 10 days of Sep have been buoyant (source: latest management interview on 13 Sep)

New products launched –

Implode – Maize herbicide
Mesotrax – Maize, Sugarcane herbicide
Defend – Rice Insecticide

To start commercial production from Dahej plant (company is making Technicals or AIs here) in Q2

Initially going to produce – Lamba Cyhalothrin and Bifenthin (both – pyrethroid class insecticides)

Revenue Mix in Q1-

Insecticides-27 pc
Fungicides-10 pc
Herbicides-54 pc
Others-9 pc

Herbicides have structural tailwinds as the cost of manual labour is increasing

Company guiding for 150-200 bps improvement in EBITDA margins for entire FY 24 with double digit topline growth

Besides the new Dahej Plant (for Technicals), company largely makes formulations only

Have a distribution network of 41 warehouses, 6500 distributors, 80000 retailers

Sells to aprox 1 cr farmers

Has international collaboration with 10 global MNCs to source products, technology

Has set up a new R&D centre in Haryana for faster development of products

Did a buyback of 85 cr LY and distributed Rs 2/share as dividend

Has introduced 06 new biologic formulation in India in Q1

Intend to export technicals from Dahej plant after meeting the captive demand

Indian agrochemical can potentially be a great growth story going forward (India has already overtaken US, Europe in Exports. Is only behind China now)

Inventory at Q1 end – 395 cr. Working capital days – 152

Channel inventory eased out in July after a build up in June

Rising agri commodity prices in Q2 is another positive for the Industry

Expect 50 cr revenues from the new Dahej facility in FY 24. The double digit topline growth guidance does not include this

Q1’s volume de-growth was 3.5 pc

The product off take in July was robust

Expect Dahej plant’s revenues to go upto 100 cr by end of FY 25

Prices of Chinese technicals seeing a gradual rise in Q2 ( company procures from both China and India )

Disc : have a tracking position

Sentiment is not hit as seems like a normal pay for delay lawsuit that Natco is named in and they still don’t sell Pomalyst in the US market. Glenmark had a similar lawsuit and took 10 years to get settled and no action only a settlement was passed. Doesnot seem like major impact on fundamentals. Promoter selling timing does seem to be dubious.