Results are out. Big YoY and QoQ drop. This will correct further I think

Once in a while, I come across investor letters which gives me brainfood to think. Today, I came across yet another one from Greenhaven Road Capital.

Here are a few excerpts I liked:

This point has been circling on my mind lately. The cacophony of narrative that we get to hear (not just from politicians whose primary job is to sell hopium) but also from many marquee market participants about India becoming a $5 tn / $10 tn / $30 tn economy over the next decades when projections few quarters down the line is difficult, if not downright impossible in today’s world.

So in such times, we as fundamental investors need to follow the evidence…

Finally, we should not forget that tomorrow’s results are being baked today. For larger companies, it will take 2/3 years, while for smaller units, 1-1.5 yrs.

So it becomes all the more important for fundamental investors like us to learn as much about the companies we own, the narratives that mgmt teams are sharing, and execution prowess demonstrated YoY (if not QoQ) to enjoy long-term compounding stories.

Do share such insightful investor letters if you’ve come across…

Naveen, can you elaborate which meeting is scheduled in Chennai today ? NCLT ?

Yes, also when they buy 75% from Glenmark Pharma, any excess shares they receive has to be sold off within 3 years as part of minimum shareholding norms

Carysil Limited Q3 and 9 Months FY24 Earnings Conference Call February 01, 2024

• Our focus on increasing capacity utilization in the quartz sinks category has been steady, with progress reaching 70% by the end of 9 months FY24 and expected to increase further on a quarter-on-quarter basis

• We expanded our capacity by adding 90,000 units in the last quarter, bringing the total to 1,80,000 units. The demand in this segment remains strong, with capacity utilization of 67% of the quarter ended 31st December 2023

• Our performance in the US and the UK market continues to be strong. The destocking process concluded and inventory is returning to its normal levels

• We expect better operating margins in the coming quarters due to various actions taken by improvement in, material sourcing, and business expansion

• Howdens is the Number 1 trade kitchen supplier in the UK. It has 750 depots. It has 27 granite
  models. They sell 10,000 kitchen sinks per week. That’s 500,000 kitchens per annum. Their gross revenue is 3.3 billion pounds with approximately 20% EBITDA margins. That has been a great feather on the cap for our UK team. And we also have received the first order from them

• It’s exciting to inform you that we have initiated the sale of appliances from our new manufacturing setup. By March 2024, our state-of-the-art facility, capable of producing 1 lakh units annually will be fully operational