For the location (Coimbatore), I’d say that’s fair.
The Average Compensations for CFOs in Coimbatore is actually much lesser: https://www.glassdoor.co.in/Salaries/coimbatore-cfo-salary-SRCH_IL.0,10_IC2836047_KO11,14.htm
Posts tagged Value Pickr
Active equity Mutual Funds Vs Direct Stock Investing (12-05-2024)
This shouldn’t matter and is neutral if they all stocks in proportion of holding. This can benefit if they sell over valued stock which turns out to be under performer. This will be negative if they sell something which turns out to be out performer.
APL Apollo Tubes (12-05-2024)
Results look flat. At 6% margin,only high double digit sales growth can push EPS. Although there are some discussions about “De-commoditizing Product Portfolio” but are have not started reflecting in OPM.
Jagran prakashan (12-05-2024)
While the promoter group is busy flaunting over LinkedIn and other social media platforms. The shareholders lost value over time in this business.
One simple thing such promoters can do is to share cash flows regularly with shareholders however, what they do is completely reverse, they keep that cash in the company and take hefty salaries and perks to enjoy their lavish lifestyle.
Just check what all Aakriti Gupta (the daughter of promoter) is doing over LinkedIn, giving gyan to people over wealth, corporate culture, ethics, business and entrepreneurship etc. while travelling to useless conferences.
Angel One: Metamorphosis into a Fintech? (Previously Angel Broking) (12-05-2024)
Possible to share a .pdf?
Waaree Renewables – old Sangam Advisors – can it keep on renewing? (12-05-2024)
Financial Highlights (as of March 31, 2024)
- Standalone Financial Results:
- Revenue from Operations: ₹27,054.19 lakhs for Q4 2024; ₹86,736.13 lakhs for FY 2024.
- Total Income: ₹27,294.07 lakhs for Q4 2024; ₹87,548.87 lakhs for FY 2024.
- Profit before Tax: ₹7,151.06 lakhs for Q4 2024; ₹20,029.00 lakhs for FY 2024.
- Net Profit: ₹5,278.74 lakhs for Q4 2024; ₹14,893.57 lakhs for FY 2024.
- Earnings per Share (Basic and Diluted): ₹5.07 for Q4 2024; ₹14.30 for FY 2024.
- Consolidated Financial Results:
- Revenue from Operations: ₹27,324.76 lakhs for Q4 2024; ₹87,643.86 lakhs for FY 2024.
- Total Income: ₹27,458.50 lakhs for Q4 2024; ₹87,988.53 lakhs for FY 2024.
- Profit before Tax: ₹7,154.37 lakhs for Q4 2024; ₹19,840.89 lakhs for FY 2024.
- Net Profit: ₹5,418.45 lakhs for Q4 2024; ₹14,804.08 lakhs for FY 2024.
- Earnings per Share (Basic and Diluted): ₹5.20 for Q4 2024; ₹14.22 for FY 2024.
Dividend Declaration
- The Board of Directors has recommended a dividend of ₹1.00 per equity share of ₹2.00 each for the financial year ended March 31, 2024.
Assets and Liabilities (as of March 31, 2024)
- Standalone Statement of Assets and Liabilities:
- Total Assets: ₹69,601.98 lakhs
- Total Equity: ₹25,935.54 lakhs
- Total Liabilities: ₹43,666.44 lakhs
- Consolidated Statement of Assets and Liabilities:
- Total Assets: ₹71,402.02 lakhs
- Total Equity: ₹23,202.88 lakhs
- Total Liabilities: ₹48,199.16 lakhs
Cash Flow Highlights (FY 2024)
- Standalone Cash Flow:
- Net Cash Inflow from Operating Activities: ₹11,753.13 lakhs
- Net Cash Outflow from Investing Activities: ₹11,527.69 lakhs
- Net Cash Inflow from Financing Activities: ₹422.96 lakhs
- Consolidated Cash Flow:
- Net Cash Inflow from Operating Activities: ₹12,679.56 lakhs
- Net Cash Outflow from Investing Activities: ₹11,398.02 lakhs
- Net Cash Outflow from Financing Activities: ₹648.03 lakhs
Key Announcements and Notes
- Amalgamation: Approval by NCLT for the amalgamation of Sangam Rooftop Solar Private Limited, Waaree PV Technologies Private Limited, and Waasang Solar Private Limited with Waaree Renewable Technologies Limited.
- ESOP Grants: Issuance of 97,910 options on 22-07-2022, 17,820 options on 28-03-2023, and 10,810 options on 26-10-2023 under the Company’s Employees Stock Option Plan (ESOP) 2022.
- Share Capital Changes: The company has allotted 73,095 equity shares during the year, increasing the paid-up equity share capital from 10,40,74,170 equity shares to 10,41,49,265 equity shares.
- Sub-Division of Shares: Approved sub-division of equity shares from a face value of ₹10 each to ₹2 each.
Disclosure: Invested
https://www.bseindia.com/xml-data/corpfiling/AttachHis/d9aabcc4-17dc-4c11-9952-a52d7bc68e6c.pdf
Radiant Cash Management Services – Asset Light Play On Cash Logistics (12-05-2024)
Disclaimer: I have vested interest in CMS Info. And, tracking Radiant Cash. Both having different models.
Unable to read Australian Financial Review article due to paywall.
Some differentiating factors in Indian industry from Australian industry:
- Formalisation of economy is still ongoing process in India, benefitting all – retail players, financial institutions and CMS providers. Reduced frictions in capital flow.
- As of now, Indian market is very high density market (my thinking: will continue to remain so due to large population and smaller land mass), making it possible for superior efficiency in logistics (fuel cost per ‘points’ served, and, manpower costs. Operating leverages in play)
- CMS Info management as well as Radiant Cash management both are aware and focussed on building operational efficiencies and lower cost per ‘unit’ served. Either through increasing density, route optimisation or risk management. However, I am not expert to check this theory (opinion based on financial numbers).
- My perception is they are aware of growth in alternative payment (UPI and cards) as they should be (Both companies are focussed on developing alternate lines of business as well – derisking company from purely cash management)
But, they are optimistic about growth of cash usage as well (which supports their business). CIC to GDP growth is just supporting point for their narrative, however, growth in cash usage on absolute basis (especially in formal channels) continues to be true. - Their capital structure is strong, i.e, no leverage which does not put additional pressure on business for positive cashflow generation. I do not know capital structure of Armaguard or Prosegur.
However, I do think there will be pressures in the long run as services like Cash on Delivery etc lose their value. As they have started to already, delivery guys and cab drivers are readily accepting UPI which was not the case before. Hospitals also have constraints that you cannot pay more than 2 lacs in cash. There should be discomforting transition period for companies in future (no prediction about timeline).
Investment thesis in nutshell:
- Cash (currency) will always be an option, purely on the basis of risk management in case of emergencies. Like gold still is.
- Diversification of business (CMS Info initiatives have already started yielding positive results).
- Cash management services should continue to grow, at least in near to medium term. Margins and Free cash flows are also increasing due to this.
- Margin of safety in valuations during investing, attempting to put odds in my favour. I do not know whether I am right or wrong wrt investment, time will tell.
Data Center Value Chain in India: Investment Opportunities (12-05-2024)
good webinar on the data center ecosystem by industry experts organized by the Care Edge team.
Sahyadri Industries (12-05-2024)
The company got a recent patent in “Multi-Layered Breathable Prefabricated Precast Wall panels and Structure” – any visibility on contribution to Topline in non-asbestos category ?
waiting for the concall. source is LinkedIn of MD Sayten Patel
Disc – Invested
Radiant Cash Management Services – Asset Light Play On Cash Logistics (12-05-2024)
To understand the prospects of Indian cash management companies, it might be useful to look at how similar companies have performed in other markets. One parallel example that may be useful is that of an Australian cash logistics company, Armaguard, which is currently fighting to stave off bankruptcy and is negotiating a rescue plan with its potential investors.
The reasons why Armaguard got into trouble in the first place bear some similarities with Indian CMS companies like Radiant. Despite being in an oligopolistic market, a consolidated customer base consisting of banks and large retailers led to price wars between the two largest players in the market, Armaguard and Prosegur. Radiant too has indicated in its concalls that it has been facing pricing pressure from its customers while renewing contracts.In 2022, Armaguard and Prosegur merged but that did not help improve the prospects of the combined entity much due to a faulty business model where the pricing was based on volume of cash handled, which has been declining, while the cost structure is fixed leading to deteriorating unit economics. Radiant too has indicated an increase in the share of volume based revenue model from a fixed price one earlier.
There seems to be a misconception that the cash in circulation (CIC) will not decline as a percentage of GDP in India going forward. While it is true that CIC to GDP ratio has actually gone up since demonetisation, the reasons for this paradox need to be understood better. This working paper from the RBI outlines these.
Reserve Bank of India – Database.
The paper suggests that the recent anomalous growth in CIC-to-GDP ratio was primarily on account of COVID-19 pandemic where household preferred hoarding cash as a hedge against uncertainty arising out of the pandemic. As the effects of the pandemic recede, CIC-to-GDP ratio has started falling again and if this trend is likely to continue in the future then it may not augur well for CMS companies like Radiant who will be forced to fight for increasing their market share of a declining total addressable market (TAM).