Brand Concepts Ltd Q1 FY24 Earnings Concall
Worth listening a concall
Posts in category Value Pickr
Silicon Rental Solutions- good but not great (18-08-2023)
I tried researching companies which are in this business. Scale of some of the companies is too small with revenue less than 4-5 cr. There are some companies which have mentioned they are providing laptop rental services on their website. But I guess that is small part of their business, as these companies are bigger than Silicon, but have lesser EBITDA Margins (<15-20%). Some of the companies , I did not get any information.
At the end, after researching a lot of companies, I only found two companies which are similar to Silicon. These companies have larger client base and reputed customers than Silicon.
| Competitors | RAC Infra rental | Sumo Technologies | Silicon Rental | Silicon Rental |
|---|---|---|---|---|
| Year of incorpoaration | 2014 | 2005 | 2016 | 2016 |
| Registered Offcie | Mumbai | Bangalore | Mumbai | Mumbai |
| Clients | 2000+ clients, 600 active clients, coco-cola, HDFC, ICICI, Kotak, Glenmark, JSW , Indian oil, DHL, Loreal, etc | 2000+ ABB, IFB, Ingersroll, Kirloskar, Schneider, Mahindra satyam, Wipro, TCS, Accenture, Mpahsis, HCL, etc | 1000+ | 1000+ |
| Assets deployed | 50000 | 50000 | ||
| Financial year | FY2021 | FY2022 | FY2022 | FY2023 |
| Revenue – FY2022 in cr | 62.26 | 33.45 | 25 | 36 |
| EBITDA | 41.77 | 16.58 | 19 | 30 |
| EBITDA Margins | 67.1% | 49.6% | 76.0% | 83.3% |
| Employee expense | 8.43 | 5.34 | 1.28 | 2.11 |
| Employee expense % of TOI | 13.5% | 16.0% | 5.1% | 5.9% |
| PAT | 16.35 | 5.66 | 10 | 11 |
| PAT % | 26.3% | 16.9% | 40.0% | 30.6% |
| Debtor days | 99 | 71 | 84 | 80 |
Employee expenses are much less for Silicon. What seems interesting is EBITDA Margins are higher for Silicon. Is it because, since the other two companies have reputed clients, their bargaining power may be slightly lesser? That’s brings us to the question, why Silicon do not have reputed clients especially IT companies and BFSI companies? May be they are targetting different customers or not able to convert these customers?
FIEM industries : auto ancillary player (18-08-2023)
Hi, in the recent quarterly result i.e. Q1 FY24, in your opinion How big the red flag is for the company not deducting the fire losses from P&L??
Mirza International – consistent performer but undervalues at present? (18-08-2023)
Shares were not there in my DEMAT Account at all. In fact, they intimated that I am not eligible for REDTAPE Shares.
Brand concept – New Emerging Micro cap Retailer (17-08-2023)
Q1FY24 Concall highlights
• Revenue 58Cr (82% YOY), EBITDA 6.5 Cr (65% YoY) PAT 3.1 Cr ( 90% YoY)
• Merger with IFF (parent company) from April 2024, turned profitable with decent EBITDA margin (not disclosed)
• IFF Revenue FY23: 48Cr, FY24 60-65Cr target
• Brand Concept supplies from IFF is ~10%
• Debt paid by IFF parent company, Balance sheet is cleaned
• Long term goal -want to manufacture inhouse to control supply chain
• New division starting- PMS (Product Management Service)- to provide services to other brand for Designing Product. Want to reach out to other brand which can’t be onboarded.
• Vision for 5 years- 30-35% CAGR growth for next 4 years (500 Cr Revenue in next 4 years i.e 3X in 4 yr)
• FY24 – Guidance 35% growth, high growth of Q1 will not dilute next 3Qs growth of 35%. (my estimate : 235-250 Cr )
• Seeing good response for the new brands- Supplied 68K bags to supplier so far
• Q3FY24 end- UCB and Aeropostale product will be launched fully
• West Kolkata TH store closed due to contract issue with Mall. Looking for alternative location
• Sales Mix- Travel-gear (Luggage, Backpack) :80%, Small Leather good (30%), Women handbag: 5-7%,
Brand Mix: Tommy Hilfiger: 80% , Other: 20%
• Trying to create different revenue stream for the company (Corporate Institution sales, Product Design services for other brands, Launching other brand product on BaglineIndia.com )
Overall all Management looked very confident about the growth prospect and clear vision for the company.
D: Holding and have been adding more. Not a buy/sell recommendation.
Mirza International – consistent performer but undervalues at present? (17-08-2023)
Woah thanks for this. Were shares not in your demat at all in first place or were they there as in my case. I know ICICI Direct isn’t very ethical but this is ridiculous again from their end.
AllCargo Logistics – Are good time ahead? (17-08-2023)
Transindia website doesn’t have any section for investors relations and allcargo terminal website has wrong financial documents. Today is date of Transindia result but they postpone it to 29th Aug
Transindia.pdf (118.2 KB)
ICICI Securities Ltd (17-08-2023)
price of ICICI Sec and ICICI share are linked in ratio of merger only 2.8% gain if you hold ICICI sec share
Clean Science and Technology Limited (CSTL) – A clean and green future ahead (17-08-2023)
Clean science product MEHQ & other product by catalyst route with more clean process and claim to have much cost advantage over others.
They are the largest manufacturer of the world (in terms of manufacturing capacities) and accounted for 55% of the global capacity. Other competitors in the industry include Solvay and Camlin Fine Science. they had got supply order from BASF for 3 years which they are trying from last 10 years