No, this time is closed group with Institutional only

Uttam 55000Cane.pdf (310.7 KB)

Uttam Sugar Cane capacity update

Thank you for sharing this real world perspective of how they operate. This is really valuable information to have.

It also corroborates with what the management says about their need to not focus on improving their margins (at least for now) but to keep it at the same level and keep drawing more business based of their lower cost structure viz a viz global competitors.

Stove Kraft Limited (SKL) Q2 FY25 Earnings Call Summary

Key Financials

• Q2 FY25 Consolidated Revenue: INR 418 crores, a 10% YoY growth from INR 379 crores in Q2 FY24.
• Q2 FY25 EBITDA: INR 49 crores, with margins improving by 120 basis points to 10.5% compared to Q2 FY24.
• Q2 FY25 Profit After Tax: INR 16.7 crores, slightly lower than Q2 FY24 due to the notional impact of indirect lease accounting.
• H1 FY25 Consolidated Revenue: INR 732.8 crores, an 8.2% YoY growth from INR 677.5 crores in H1 FY24.
• H1 FY25 EBITDA: INR 80.7 crores, with margins at 11% compared to 9.4% in H1 FY24.
• H1 FY25 Profit After Tax: INR 24.9 crores, with margins at 3.4%.

Key Pointers

• Own Manufacturing Strategy: SKL’s strategy to establish its own manufacturing facilities has started to yield positive results, leading to enhanced operational efficiencies and improved gross margins and operating profits.
• Stable Raw Material Costs: The company benefited from stable raw material costs in Q2 FY25, contributing to margin improvement.
• Retail Expansion: SKL continues to expand its retail footprint, adding 22 new stores in Q2 FY25, reaching a total of 213 stores across 13 states and 54 cities.
• Channel Mix: The company reported double-digit growth across all major channels in Q2 FY25, indicating robust demand. The channel mix was:
  • General trade: 28%
  • E-commerce: 40%
  • Modern trade: 13%
  • Corporate Sales: 5%
  • Own Retail: 4%
• Exports: Exports constituted 10% of the company’s revenue in Q2 FY25.

Future Outlook

• Positive Demand Outlook: The company is optimistic about maintaining a strong market position, driven by the festive season, favorable economic conditions, and government policies.
• Volume and Realization Growth: The company reported growth in both volumes and realization in Q2 FY25 and expects this trend to continue.
• Quality Control Order (QCO) Advantage: The introduction of QCO for various small appliances is expected to further boost SKL’s revenue and margins as the company has already established the required manufacturing infrastructure.
• Retail Expansion: SKL plans to continue aggressively expanding its retail store network, aiming to add around 50 more stores by the end of FY25.
• EBITDA Margin Target: The company aims to achieve EBITDA margins in the range of 11% to 14% over the medium term (3-5 years) through operating leverage and improved gross margins.
• Exports Growth: SKL is working on developing new products for the export market and expects to achieve a 16-17% revenue contribution from exports with the addition of new global retail partners.

Challenges

• Working Capital Management: While working on reducing inventory and receivable days, the company saw an increase in working capital loans in H1 FY25 due to the festive season.
• Subdued Volume Growth in Certain Categories: Some product categories, such as induction cooktops and gas cooktops, experienced subdued volume growth in Q2 FY25.
• Competition: SKL faces competition from other established players in the kitchen and home appliances segment, particularly as new manufacturers emerge in response to the BIS standards and QCOs.
• Depreciation and Interest Costs: Depreciation and interest costs are expected to increase as the company continues to expand its retail store network.
• MFI Channel Slowdown: The rural MFI channel remains subdued due to pre and post-election restrictions.

Anant Raj Limited (ARL) Q2 FY25 Earnings Call Summary

Key Financials

• Record-breaking results: Best quarter and half-year in ARL history, with robust growth in revenue, EBITDA and profitability.
• Revenue growth: Revenue for Q2 FY25 was INR 524 crores, a 54% increase compared to Q2 FY24. H1 FY25 revenue grew 51% over H1 FY24.
• EBITDA growth: EBITDA for Q2 FY25 was INR 124 crores, up 40% year-on-year. H1 FY25 EBITDA rose 49% compared to the previous year.
• Profit after tax (PAT): PAT for Q2 FY25 was INR 106 crores, a remarkable 75% year-on-year growth. H1 FY25 PAT increased by 78%.
• Debt reduction: Net debt reduced by INR 124 crores in Q2 FY25 compared to Q1 FY25. Outstanding net debt is INR 95 crores as of September 30, 2024.
• Rental income (excluding data centers): INR 12.5 crores for Q2 FY25.
• Data center revenue: INR 8 crores for Q2 FY25.
• Projected Cloud revenue: INR 150 crores per year per megawatt for Infrastructure as a Service (IaaS).

Key Pointers

• Data center progress: 6 megawatts of IT load operational at the Manesar facility; work on 21 megawatts progressing rapidly. Targeting 28 megawatts IT load at Manesar and Panchkula by the end of FY25.
• Cloud services launch: Launched “Ashok Cloud”, offering IaaS. Plans to expand to Platform as a Service (PaaS) and Software as a Service (SaaS) in the future.
• Land acquisition: Acquired 20 acres of land in Gurgaon, enhancing real estate development portfolio.
• Real estate projects: Construction commenced for “Estate Residences” group housing project and affordable housing in Tirupati. Phase 1 delivery of the JV project with Birla has started.
• Zero-debt target: On track to achieve a net debt-free status by the end of the next quarter.
• Fundraising plans: Proposed fundraising of INR 2,100 crores (INR 100 crores from promoters and INR 2,000 crores from the market) primarily for the data center business.

Future Outlook

• Data center expansion: Targeting 63 megawatts capacity by FY26, with 14 megawatts dedicated to cloud services.
• Focus on cloud services: Expanding cloud offerings beyond IaaS to PaaS and SaaS.
• Continued growth in real estate: Launching 1.8 million square feet of real estate projects this year, with plans for commercial development and leasing.
• Increase in rental income: Aiming to triple commercial rental income in the next two years.
• Delhi land development: Holding 101 acres in Delhi, awaiting the new master plan before initiating development.

Challenges

• Competition in the data center market: ARL needs to differentiate itself from existing and new players in the rapidly growing data center and cloud services market.
• Attracting and retaining skilled talent: ARL will need to secure a qualified workforce to support its ambitious expansion plans, particularly in the data center and cloud division. This information is not explicitly stated in the sources and you may want to verify it independently.
• Managing the transition to a two-division company: Balancing the growth of both the real estate and technology divisions will require effective resource allocation and strategic decision-making. This information is not explicitly stated in the sources and you may want to verify it independently.
• Navigating regulatory and legal complexities: The data center and real estate industries are subject to various regulations and permits, requiring ARL to stay informed and compliant. This information is not explicitly stated in the sources and you may want to verify it independently.
• Managing debt levels: While ARL is on track to become debt-free, the proposed fundraising for data center expansion could increase leverage, requiring careful financial management. This information is not explicitly stated in the sources and you may want to verify it independently.