Former Karnataka Chief Minister Basavraj Bommai criticizes state government’s retraction of waqf land notices, calling it a diversion during by-elections. BJP’s Shehzad Poonawalla and LoP Chalavadi Narayanaswamy also term the move as an attempt to win votes, urging the withdrawal of the 1974 gazette.
Posts tagged All News
Journalists facing atrocities under BJP regime: SP Chief Akhilesh Yadav (03-11-2024)
Samajwadi party president Akhilesh Yadav has accused the BJP of oppressing journalists and using various methods to lower their morale. This follows an incident where a man was beaten after being stripped, which prompted an FIR by the Hamirpur police and the arrest of RK Soni.
BEW Engineering- A proxy play on pharma and chemical sector (03-11-2024)
Hi,
Trying to understand to the total addressable market(TAM) for Filters and Dryers and what can be the revenue for BEW out of that. Based on their July’2023 presentation, 3 listed players(GMM, HLE and BEW) do a business of 600 Crs for filters and dryers in the organized market and couple of other manufacturers have a turnover of 200-250 Crs. In addition to this Drum Dryers have a TAM of 150-200 Crs. So roughly the entire Indian dryer market is around 1000 Crs and 800-850 Crs excluding Drum Dryers. BEW has claimed that it has 40% market share of Dryers in India. Last year their entire revenue was 120 Cr. 90% (108 Cr) was domestic revenue. Filters and Dryer combined revenue was 90%. So around 95-100 Cr was domestic revenue from Dryers and Filters. Now 40% of 800 Cr is 320 Cr. Am I missing something here because the numbers don’t add up.
Moreover I am trying to establish a revenue potential for BEW here. They are targetting a revenue of 300 Cr in FY 27. Let’s say if they grow their exports to 25% by that time then the Domestic revenues would be 225 Cr and out of that Filters and Dryers would contribute around 180-190 Cr. What would be the maximum Domestic Revenue that they can achieve out of the current product mix ?
Glenmark Life Sciences (03-11-2024)
You are right. Given the outsized contribution of Ankleshwar plant to the company’s revenues, some revenue loss from the closure was certainly expected. The decline in revenue is certainly more than what a few days of delayed reopening would justify. So, the management seems to have incorrectly downplayed the impact of closure in Q1 call.
Also, I don’t think Argentina contributes much to the company revenues. Management declined to provide the exact percentage, but we know that Glenmark Pharma has a formulation facility in Argentina which earned a revenue of Rs.117 crore in FY24.
Using this, one can assume it has quarterly revenues of around Rs.30 crore and so a small portion (20-25 % ??) of that would be API cost (which become GLS revenues). That would be say Rs.5 to 10 crore per quarter, that’s all.
One analyst pointed out there is pricing pressure in the market due to aggressive pricing by the Chinese. Mr. Rawjee said they are much less impacted as they play more in the regulated markets.
Earlier, he had also pointed to improvement in Gross Margins as proof that there was no pricing pressure. But even in regulated markets, formulation companies do have multiple approved suppliers, and will buy from the lowest cost approved supplier, why not. Further, your Gross Margins can improve even if your own input costs decline more than selling prices. So the impact of Chinese pricing pressure on topline cannot be fully ruled out.
Besides this, there could also be other reasons that are distorting year on year comparison. Loss of PLI benefit this year is one. Alignment of revenue recognition policy with Nirma – which is more conservative – is another.
I for one was certainly expecting a decline in revenues this quarter, and I would be very much surprised if the market wasn’t. But I hope the broader story remains intact. New molecule commercialization under CDMO, new API launches, capex execution and regulatory inspections are the things to track. Early indications from the new promoter are positive, such as stepping up investments in R&D. The broad strategic direction seems fine so far. Let’s see what happens next.
(Disc.: Invested)
Ahead of Market: 10 things that will decide stock action on Monday (03-11-2024)
Indian benchmark equity indices gained during a special one-hour “muhurat” trading session on Friday, marking the Diwali festival, driven by auto stocks boosted by positive monthly sales data.
Rahul Gandhi campaigns for Priyanka in Wayanad, says “confident you now have the best possible MP” (03-11-2024)
Rahul Gandhi campaigned in Wayanad for his sister Priyanka Gandhi ahead of the bypolls on November 13. Priyanka criticized the Modi government for prioritizing business interests over people’s well-being. The bypoll was necessitated after Rahul vacated the seat post-general elections win, keeping Rae Bareli. The contest is between Priyanka Gandhi, BJP’s Navya Haridas, and the Left’s Sathyan Mokeri.
NPCI nod to onboard users may help Paytm (03-11-2024)
One97 Communications (OCL), the company that operates brand Paytm, received a nod from the National Payments Corporation of India (NPCI) to onboard new Unified Payments Interface (UPI) users. This comes nearly nine months after the Reserve Bank of India (RBI) placed an embargo on OCL to add new customers.
How to calculate Return on Assets? (03-11-2024)
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