Inspite of increasing sales, margins are continuously going down over last few years. Is there anyone who tracks the company knows the reason ?
Posts tagged Value Pickr
Radhika Jeweltech – Small base Large aspiration (21-05-2024)
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Hindustan Unilever (HUL) (21-05-2024)
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Action construction equipment ltd (21-05-2024)
True. After today’s result, P/E has fallen about 15% from 67 to 57. I expect it to go back to 65-70 range in a week’s time.
That would be about 1750-1850 range.
Ranvir’s Portfolio (21-05-2024)
Somany Ceramics -
Q4 and FY 24 concall and results highlights -
Q4 financial outcomes -
Revenues - 732 vs 675 cr, up 8 pc
EBITDA - 79 vs 61 cr, up 30 pc ( margins @ 11 vs 9 pc )
PAT - 34 vs 24 cr ( up 39 pc )
FY 24 financial outcomes -
Revenues - 2577 vs 2465 cr ( up 4.5 pc )
EBITDA - 253 vs 189 cr ( up 34 pc, margins @ 10 vs 8 pc )
PAT - 97 vs 71 cr ( up 35 pc )
Breakdown of sales -
Own manufacturing - Tiles - 815 vs 833 cr
JV - Tiles - 771 vs 804 cr
Outsourced - Tiles - 611 vs 510 cr
Bathware - 267 vs 244 cr
Others - 59 vs 33 cr
It was a very tough year for the building materials industry
Only positive during FY 24 was the correction in Natural gas prices ( a key RM ). It fell from Rs 59 / cubic mtr to Rs 40 / cubic mtr ( yearly avg price ). This has helped boost margins
Capacity utilisation in FY 24 @ 86 pc, down by 1 pc vs FY 23. Capacity utilisation at sanitary ware @ 70 pc and @ 100 pc for faucets
Amounts spent on brand building @ 2.5 pc of revenues for FY 24. Aim to spend 3 pc of sales in FY 25
Current installed capacity of tiles @ 78 million Sq Mtrs. FY 24 sales @ 68 million Sq Mtrs
Aim to grow revenues in mid single digits ( with low double digit volume growth ) in FY 25 ( conservative estimate ) with 100-150 bps improvement in EBITDA margins
Aim to increase growth rates in the Bathware segment in FY 25
Only maintenance / routine capex is planned for FY 25 @ 50-60 cr
Company expects good growth in FY 25
( specially in H2 ) due booming RE mkts in India
GVT tiles contribution @ 34 pc for FY 24. GVT tiles realisations are better than Ceramic and polished vitrified tiles. Aim to take this share to 40 pc of sales in 2-3 yrs
There was a substantial dip in the exports mkt in Q4 which led to increased competition from Morbi players in the domestic mkt. However, exports have picked up in Apr-May. Also, company believes that the worst of pricing pressures may now be behind them. They do expect to clock in 11 pc kind of EBITDA margins for full FY 25
Q1 has been sluggish due elections. Expect a strong pick up in sales in H2
Somany’s margins are inferior to Kajaria’s because of Kajaria’s better product mix and operating leverage vs Somany
Company’s sales mix @ 80 : 12 : 08 - Retail : Govt Projects : Private projects
Don’t see any significant capacity addition at Morbi for next 12-18 months
Company’s Govt projects segment has been doing well. Expect the same to continue
Company is not on a hurry to add capacities. Incase there is a sudden surge in demand in H2 and beyond, they can always outsource the capacities and ample spare capacities are available at Morbi
Disc : holding, biased, carefully looking out for pricing pressures, not SEBI registered
Amit Singh Learning page (21-05-2024)
My understanding based on 1100cr non listed solar epc contractor. Solar EPC Margins are ~10% for Govt tenders & ~6% for pvt tenders.
SW solar stands out with almost double margin, I wish to understand how they doing them good margins ?
KSE Limited — Interesting Business (21-05-2024)
Here is the email sent to share holders
I’m delighted to announce the 4th quarter results with a profit of Rs.25.97 crores, showcasing a growth of 4.5% with a revenue of Rs.1687.46 Crores and profit before tax of Rs.24.24 crores for the financial year 2023-24. The company is into its 60th year of operation and our steadfast growth at KSE continues to deliver value to investors. Our core segment Cattle Feed delivered a profit of Rs.40.43 crores for the year ended 31st March 2024. Following the strategic recommendations provided by Grant Thornton by conducting a detailed market analysis, and evaluating the company’s internal strengths and weaknesses, the company is planning significant strategic growth. The recommended strategy comprises of segment, functional and corporate level recommendations which are poised to enhance our growth and presence in the market. These interventions are pivotal in cementing our progress and the steps taken to ensure sustained growth.
Following are the key highlights of the 3-year growth plan which your company has started implementing.
· By embarking on market expansion to new geographies, introduction of innovative products, and diversification of product offerings across animal feed, ice cream and dairy segments, the company has already increased its market base in southern part of India on cattle feed and in three years your company will make its footprints in northern India as well.
· Though the oil cake processing division was into negative margins during FY 2023-24 due to material prices inflation and downward trend in selling price, your company put in various measures to keep the prices under control and the year 2024-25 started with an increase in selling price of our refined oil. Your company foresees the oil cake division delivering good results in the coming year.
· In ice cream segment, our brand ‘Vesta’ is becoming popular in Kerala region resulting in increased market share and growth. This will continue in the coming year as well. Strengthening brand image for ‘Vesta’ as an FMCG product of KSE to enhance its market presence and brand recall through strategic marketing initiatives is on the anvil.
· Dynamic approach towards cost accounting bringing out clearly performance of all the four business units – Animal Feed, Oil Processing, Dairy and Ice Cream
· In the animal feed segment, to achieve enhanced growth in the next financial year, phased market expansion and penetration in other states with emphasis
· optimisation through dynamic procurement and strategic pricing adjustments is planned.
· In the dairy & ice cream segments, strategic pricing of the SKU portfolio, positioning of the brand, team enhancement with enhanced expertise and new product variants are planned.
· Based on the recommendations by GT on functional performance, initiatives are in place to implement the same across five areas of people excellence, digital transformation, financial planning, robust governance & compliance, and environmental stewardship.
· As part of digital transformation initiatives proposed, the ERP systems would be strengthened, and a tech-driven performance culture would be implemented.
· To instil a performance-driven culture, enhanced incentive pay structures would be implemented for marketing teams across segments to drive the growth strategy goals.
Your company under the renewed leadership and vision has started to witness positive signs and the outcome is evident from our last quarter performance; further, the suggested growth strategy is poised to fortify KSE’s position and pave the way for continued success in the evolving market landscape. These strategic initiatives signify our dedication to operational refinement, performance enhancement, and sustained growth. All strategic decisions will be result oriented and futuristic; we anticipate a steady growth in the upcoming fiscal year, further enhancing our top-line performance.
As your company steps into its 60th year of operation, a special mention of appreciation to all share holders, customers, suppliers, employees and business partners who associated and cooperated in our march towards professional excellence. We solicit your enhanced and continued support in all our ambitious, future endeavours.
IPO Review – Discussion until listing (21-05-2024)
which bank? I not got a single allotment from past 6 IPO’s I applied just wanted to try in you way
IPO Review – Discussion until listing (21-05-2024)
Even I feel the same but how to take up this to SEBI and what SEBI can do on this will they share the allotment list to public? I was just curious on this…