As far as india is concerned - financials are not impacted. Only concern is corporate governance which infact is larger one if its true.
Otherwise business is going fantastic and with so many tailwinds flowing in terms of digitisation, cross border deals, internet, rich library - eros has a bright future ahead. Eros has a niche position in industry with wide competitive advantage vis-a-vis others.
Can you provide other details of communication with Mr. abhay.
Disc: has taken position will increase with confidence.
Posts in category Value Pickr
Eros international (28-10-2015)
Alembic & Alembic Pharma (28-10-2015)
Totally agree with Hitesh Bhai. If there is one stock where there is a clear long term visibility in terms of pipeline and short term triggers like abilify it is Alembic.Although Abilify impact will taper down with subsequent quarters I am sure Frontend operational should both drive margins, sales and marketshare much higher for the subsequent drug launches
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (28-10-2015)
(post withdrawn by author, will be automatically deleted in 24 hours unless flagged)
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (28-10-2015)
Production at Jambusar facility has started w.e.f 26th Sep 2015.
Was someone able to find out what was the revenue breakdown of CSM business?
Nihar Info Global —-E Commerce Player! (28-10-2015)
Hi Hafiz,
I have learned one thing, which I believe most of us know - 'Jo dikhta hai wohi bikta hai' In this high competitive e-commerce market one has to present in the consumer mind all the time, customer ki aapse nazar hati aur dhurgatna ghati Just check nihar's alexa ranking and see where they are in the world of e-commerce.
I haven't checked their numbers, but their website is shitty, cluttered, from business point of view I don't like them (atleast today).
Hypothetical situation – Valuing unconsistent business (28-10-2015)
You could try to do a discounted cash flow for this. And use the current risk free rate as the discount rate.
Kitex Garments Limited (27-10-2015)
Sharing an interesting take on 'Guidance' by Ian Cassel. The blog is not relevant to discussion on Kitex and I am posting this link only from an educational point of view and not to start a debate on Kitex giving guidance etc.,. Therefore request that lets not clutter the thread with comments about Kitex's Guidance on the basis of this blog and form our own individual opinions and interpretations on the blog (as there can be more than one).
Omkar Speciality Chemcials Ltd — OSCL (27-10-2015)
Adding below Omkar IR's response to few questions that I had asked them over the e-mail.
1) Finance Costs -
1) I heard in the concall that the short term debt has been converted into long term debt. E.g. given was of a 1 year loan getting converted into a 2 year loan. What is the purpose of re-structuring debt like this?
Ans.- Since, the STL were putting pressure on cash flow, hence, some of the Short Term debts have been renegotiated with lenders and converted as Long Term debts.
2) The above restructuring i.e. converting short term debt into long term I assume should result in interests costs going down. But I see that the finance costs have been going up. What is the reason for finance costs going up despite a re-structuring like above?
Ans.- The conversion was done at the end of quarter hence there is no significant change in interest cost. The additional finance cost is due to interest on Loan against shares.
3) Has any extra debt been taken? And, if yes then for what purpose?
Ans.- Rs.4 crore additional limits were sanctioned by Bank to meet the additional working capital requirement of Lasa.Has our company being capitalizing interests costs? If yes, then why? No interest capitalization during the quarter.
2) Process Patents-
1) Assuming that these process patents result in reducing costs, what is the impact of these process patents on costs i.e. by what percentage are the costs brought down?
Ans.- Around 15%.
2) If possible can the impact of these process patents on Margins be stated?
Ans.- The impact of these process patent can be seen in the long run.
3) What were the savings in H1 FY16 and Q2 FY16 because of these process patents?
Ans.- Direct saving cant be quantified but Increase in sales revenue, Having good concrete order book in Hand are the Advantages and results of Having Process patents.
4) Do these process patent provide any competitive advantages over competitors?
Ans.- Yes.
5) Don't competitors come up with such process patents?
Ans.- So far the competitors have not developed such processes.
3) Raw Materials-
1) What is the outlook going ahead on raw material prices?
Ans.- We expect the raw material prices to remain stable in near future. As most of our RM are basic petro Chemicals.
2) What is the percentage of imported raw material costs as a part of overall raw material costs and as a percentage of sales?
Ans.- Will be Provided shortly.
4) Does our company enter into any forward contracts to hedge currency fluctuations? If yes, then can you state the amount of such forward contracts as on date?
Ans. No. Generally we have natural hedging on account of forex inflow on the export sales made by the company.
5) Are there any inspections and certifications lined up from regulated markets in Europe and USA for our plants? If yes, then from which markets and regulators? And till when will our plants receive those
certifications or approvals?
Ans.- Yes. We are planning approval of TGA as Our API has high demand in Australia and New Zealand(2-3 Months approx.). Also at later stage were are planning to Get US FDA as well. (Around a year’s time Max)
Omkar Speciality Chemcials Ltd — OSCL (27-10-2015)
(post withdrawn by author, will be automatically deleted in 24 hours unless flagged)
Omkar Speciality Chemcials Ltd — OSCL (27-10-2015)
Adding below Omkar IR's response to few questions that I had asked them over the e-mail.
-
Finance Costs -
- I heard in the concall that the short term debt has been converted into long term debt. E.g. given was of a 1 year loan getting converted into a 2 year loan. What is the purpose of re-structuring debt like this?
Ans.- Since, the STL were putting pressure on cash flow, hence, some of the Short Term debts have been renegotiated with lenders and converted as Long Term debts.
- I heard in the concall that the short term debt has been converted into long term debt. E.g. given was of a 1 year loan getting converted into a 2 year loan. What is the purpose of re-structuring debt like this?
2. The above restructuring i.e. converting short term debt into long term I assume should result in interests costs going down. But I see that the finance costs have been going up. What is the reason for finance costs going up despite a re-structuring like above?
Ans.- The conversion was done at the end of quarter hence there is no significant change in interest cost. The additional finance cost is due to interest on Loan against shares.
3. Has any extra debt been taken? And, if yes then for what purpose?
Ans.- Rs.4 crore additional limits were sanctioned by Bank to meet the additional working capital requirement of Lasa.Has our company being capitalizing interests costs? If yes, then why? No interest capitalization during the quarter.
-
Process Patents-
- Assuming that these process patents result in reducing costs, what is the impact of these process patents on costs i.e. by what percentage are the costs brought down?
Ans.- Around 15%.
- Assuming that these process patents result in reducing costs, what is the impact of these process patents on costs i.e. by what percentage are the costs brought down?
2. If possible can the impact of these process patents on Margins be stated?
Ans.- The impact of these process patent can be seen in the long run.
3. What were the savings in H1 FY16 and Q2 FY16 because of these process patents?
Ans.- Direct saving cant be quantified but Increase in sales revenue, Having good concrete order book in Hand are the Advantages and results of Having Process patents.
4. Do these process patent provide any competitive advantages over competitors?
Ans.- Yes.
5. Don't competitors come up with such process patents?
Ans.- So far the competitors have not developed such processes.
-
Raw Materials-
- What is the outlook going ahead on raw material prices?
Ans.- We expect the raw material prices to remain stable in near future. As most of our RM are basic petro Chemicals.
- What is the outlook going ahead on raw material prices?
2. What is the percentage of imported raw material costs as a part of overall raw material costs and as a percentage of sales?
Ans.- Will be Provided shortly.
Does our company enter into any forward contracts to hedge currency fluctuations? If yes, then can you state the amount of such forward contracts as on date?
Ans. No. Generally we have natural hedging on account of forex inflow on the export sales made by the company.Are there any inspections and certifications lined up from regulated markets in Europe and USA for our plants? If yes, then from which markets and regulators? And till when will our plants receive those
certifications or approvals?
Ans.- Yes. We are planning approval of TGA as Our API has high demand in Australia and New Zealand(2-3 Months approx.). Also at later stage were are planning to Get US FDA as well. (Around a year’s time Max)