Hi Everyone, I am against VLCC IPO purchase as I am a user myself of their services, care to join in?

Notes From Annual report 2023

1.BBL have implemented a business development program a few years ago to increase non-tendered
business from customers. This effort has borne rich dividends and has enabled us to grow our unexecuted order book by almost 50% (in Rupee terms) as compared to the previous year. The order book now stands at its highest ever

2.The Motor business has grown 16% over the previous financial year. Our drive to expand geographically has bolstered sales in many new territories

3.In the Drives and Automation topline is up 38% over the previous financial year.The division has procured some breakthrough orders with e-bus manufacturers and these orders are under execution. Our in-house developed IIOT (Industrial Internet of Things) solutions cater to the areas of predictive maintenance and OEE (Overall Equipment Effectiveness). OEE is a measure of how well a manufacturing operation is utilized as compared to its full potential

4.The Magnet Technology Machines division has grown by 39%.A smaller range servo motor is under development; this will cater to industries like textiles, packaging and printing.
The successful in-house development of these motors has been a great achievement.

5.The Magnet Technology Machines business exported during the year its first 3000 Nm direct drive motor for a special printing press to our technology partner Permagsa in Spain. Engineered in association with Permagsa, the air-cooled motor, has a modified PM rotor, with special hollow shafts and end shields for increased efficiency.

6.The Company has not entered into material related party transactions as defined under Section 2(76) of the Act and Regulation 2(1)(zb) of the Listing Regulations, during the Financial Year under review.

AurionPro had receivables pending from Trejhara which is a related party company. They acquired the company without paying any cash but adjusting against the receivables. After the transaction, Trejhara will become part of AurionPro contributing to its revenue and the receivables will be reduced from the balance sheet. It will improve the strength of the balance sheet and cash flow position.

It is also important to highlight risk,
From latest credit report
Operations remain linked to investments in power and capital goods sectors; exposed to intense competition in transformer as well as motor segments – BBL’s operations are inherently linked to strong revival of investment activity in the power andcapital goods sectors. Thus, such investments will remain critical for the company to ramp up its scale of operations in the medium term. Also, the demand–supply situation in the domestic transformer industry, remains challenging on account of
issues posed by the power sector in terms of large capacity additions (especially in thermal and gas-based units), leading tostiff competition, limiting the pricing flexibility for most players in the segment. Moreover, in the motor segment, the competition remains stiff, given the large MNCs as well as domestic players in the field, apart from more standard product offerings compared to customization available in the transformer portfolio.

Elongated receivable cycle due to slow payments from SEBs – BBL’s receivable days remain over 100 days due to elongated payment cycle from the SEBs. Nevertheless, the collection cycle has improved over the last two fiscals to 105 days in FY2023 compared to over 126 days in FY2021. This is because the company has started catering to more private players due to the relatively shorter credit period. Further, government has also taken measures to support the SEBs through various financing
schemes for timely payments to its vendors.

Susceptible to variations in raw material prices; events of any non-applicability of PVC or invocation of LD clause remain an ongoing challenge to profitability levels – Typically, ~70-80% of BBL’s contracts for transformers come with PVCs, while the rest are fixed-price contracts. For electrical motors, only fixed-price contracts are prevalent. This is because of the lower lead time for manufacturing these products and the large proportion of sales to retail segments. Although BBL is protected against
any raw material price increase in case of PVCs, it is sensitive to variations in copper and Cold Rolled Grain Oriented (CRGO) steel prices for fixed-price contracts. This is because BBL buys copper and CRGO steel in spot markets, where their rates are volatile, while immediate and full pass-on of the increase in costs to customers is not always possible.

Can you explain what was thois Trejjara thing? [quote=“Naveen_Kengannar, post:21, topic:103941, full:true”]

My take: It seeems more like cleaning up the balance sheet from their old mess and it’s favourable to the shareholders
[/quote]

Can you explain this?