Highlights of the Concall by Capital Mkt
Net sales stood at Rs 1313.4 crore grew by 5.2% over the same quarter last year. Material cost, as a % to sale, is lower than same quarter last year by 778 bps mainly on account of lower prices of key raw materials. EBITDA stood at Rs.301.4 crore grew by 46.1%. Profit before tax in current quarter is Rs. 276.5 crore, a growth of 47.6% and Profit after tax stood at Rs 192.9 crore is higher by 40.5%.PBIT margins rose 690 bps to 24.6% in Q2FY'16 led by 660 bps rise in Consumer and Bazaar segment PBIT margins to 26.1% while Industrial product segment PBIT margin rose 600 bps to 17.5%.
Consumer and Bazaar segment revenue grew by 5.2% during Q2FY'16 compared to Q2FY'15 while segment profit before interest and tax (PBIT) grew by 38%. For H1FY'16 Segment revenue grew by 6.4% & segment profit beforeinterest and tax (PBIT) grew by 36.1%.
Industrial products segment revenue declined by 9.1% during Q2FY'16 compared to Q2FY'15 while segment PBIT for the quarter grew by 38.6%.For H1FY'16 Segment revenue declined by 4.3% & segment PBIT grew by 64.9% due to lower input costs.Sales in constant currency grew by 20% during the quarter. However, due to translation impact the reported sales show a growth of 10.9%.
North America sales recorded a growth of 6.9% for the quarter while EBITDA for the region improved by 57.9% on account of higher sales and improvement in margins due to various cost saving initiatives. For the Half year ended 30th September 2015 sales declined by 0.8% while EBITDA improved by 50.2%.
South America sales declined 1.9% for the quarter. Brazil business was impacted due to continued slowdown of the economy. Losses at EBITDA level reduced by 35.3%. Manufacturing and SG&A expenses were lower than last year due to the structural changes and other cost saving initiatives implemented. For the Half year ended 30th September 2015 sales declined by 4.3%.Loss at EBITDA level reduced by 24.7%.
Middle East & Africa sales grew by 117% for teh quarter largely due to commencement of distribution of Pidilite Industries products in the region, which hitherto was being done by a third party distributor. Adjusting for this revenue, sales were lower than last year. Loss at EBIDTA level increased by Rs 2.41 crore due to lower sales and higher SG&A expenses to support future sales growth in this region.
South & South East Asia sales grew by 26.2% for the quarter. EBIDTA grew by 36.3% due to good sales growth and reduction of material cost.The company expects tax rate of 30% for FY'16 which is further expected to increase in FY'17.VAM prices during the quarter were around USD 900-925 per tonne which corrected on QoQ basis. Currently prices are now below USD 900 per tonne
Posts in category Value Pickr
Pidilite Industry : Fevicol ka Jod (01-11-2015)
Hindistan Media Ventures Limted (HMVL): A mispriced bet in newspaper business (01-11-2015)
The good part is company is converting about 11% of cash available into other income which somewhat proves this money is for real unless they writeoff bad debts or losses in future.
Check this http://epaper.livehindustan.com/epaper/Delhi/Delhi/2015-10-31/1/Page-2.html
These days the front cover pages are filled with full page ads. With ecommerce companies spending huge in advertisement is good for the company. This will also force store retailers like Chroma, Vijay to increase their advertising spending to compete with online retailers. Coming few quarter should be good for HMVL.
Lactose India – Unique Play on Lactulose & Contract Manufacturer for MNCs (01-11-2015)
Fantastic results from Lactose India.
YoY P &L
Revenue up 116%
Expenses up 50%
EBITDA up 710%
PAT up from 2.94 lac to 182.33 lacs
EPS up from 0.03 to 2.18
Balance sheet
Long term debt down 3 cr.
Working capital from 313.08 lac to 304.03 lac
Showing good signs of improvement.
Shalibhadra Finance – Steady Growth NBFC (01-11-2015)
Most Importantly - I reserve the right to be wrong
I got a lot of positive feedback from forum members, so that just makes me a little conscious
Over to Gurjot, to fill in the missing bits
Shalibhadra Finance – Steady Growth NBFC (01-11-2015)
Great Work Gurjot
Like everybody else I am also dying to know what you thought of the MD - Minesh Doshi
a) Did he share anything about future prospects of the company
b) Did he come across as a honest and straightforward guy
c) Was he humble and did he give you, a minority shareholder adequate attention or was he a bit authoritative
d) What was your overall impression of him
I like these guys,I think in NBFC business having honest and ethical promoters is half the battle won,almost, everytime investors lose money investing in an NBFC is when they invest in promoters who are dishonest and over aggressive
SEBI thing and CSR are minor things, these guys are facing teething issues with going digital, moving the dividend payment system from physical to digital is a very positive step long term, short term pain is guaranteed though
It is great to see physical growth in contracts and opening of 3 more branches,plus the supposed branch in MP - this shows that management is stepping on the gas
The Negatives -
The ecosystem in which this company operates is under a lot of stress, it was heartening to see physical business growth, but the environment is stressful, if anybody can make it work, these guys can,let's see
At some time in the future, these guys will convert their unsecured loans into equity to increase capital base, this is normally done at book value, it is both a negative and a positive, negative because we get diluted, but positive because it gives the company even more operating leverage to drive business growth,everybody asking why these guys are working at no salary, this increased equity stake is what will be their payoff in the future for the work they have been putting into the company, from whatever I can decipher from their behavior, they will do it in a way which would be least harmful to minority investor interests
Shalibhadra Finance – Steady Growth NBFC (01-11-2015)
Thanks Gurjot.
Really Helpful. Reduces a few doubts that were coming in mind on promoters' credibility due to no AR & no dividend received.
On CSR- I think that a minor issue. Many small companies have not done full required CSR activity this year & they should be getting more time to complete that.
On non-compliance- Could be minor penalty from SEBI depending on seriousness of issue.
NCL Industries – Resumption of growth? (01-11-2015)
Check this out -
This interview happened in August which falls in second quarter. The MD mentions that they had taken up the repairs during the quarter. But they may have managed around it, so that the stoppages didn't affect a lot.
Economic Value added (01-11-2015)
While EVA is the right way to measure things, it is really not as path breaking as it is made out to be.
EVA is better than EV/EBITDA or P/E or P/S or P/BV to value companies.
But it is just DCF in a new bottle. To be specific DCF after removing Opportunity cost in a new bottle.
Cupid Ltd – Helping the world play safe! (01-11-2015)
Cupid results were music to my ears after a rather subdued results from my other holdings:
Salient points:
- Revenue growth: 57% YoY and 23% QoQ.
- Profit growth: 140% YoY and 30% QoQ.
- All Pledged shared released.
- Interim dividend of 1 INR per share declared.
- EPS doubled H1 FY16 vs. H1 FY15.
On H1 EPS of 6.41 (FULL year FY 15 EPS is 6.93),
I predict, H2 FY16 to be better than H1 and full year EPS could be around 16-18. I think the full quarterly effect of the new large order may not have been reflected in this quarter but over the year the revenue growth will further catch up.
Quantitative and Qualitative points have both improved and the story could be on the way becoming a secular one.