Q2 Results are out.
PAT at Rs 39.05 cr vs Rs 32.7 cr, up 19% YoY
NII at Rs 74 cr vs Rs 59 cr, up 24.7% YoY
Prov at Rs 4.7 cr vs Rs 1.7 cr YoY
Loan book at Rs 6,849cr, up 31% YoY
Gross NPA at 1.8%
Net NPA at 0.92%
Sanctions are up 53%
Disbursements up 42% YoY
dude there was exceptional profit of 7.45 cr last year qtr.
I have been trying to register but it seems link is still down. Can you help?
Do not count much on Prof Bakshi for the return from stocks. He excells in business anlysis, but business analysis does not give you return in this age of fast communication because you never know the intent of blogs from experts.
The following blog may throw some light on your points
http://blog.mahindracomviva.com/a2p-aiming-2-profit/
I see this surge to continue further with emphasis on digital india.
@desaidhwanil Thanks for prompt reply. I do agree that the IRR assumption does seem to be quite conservative. I am also cognizant of the fact that having multiple frequencies in their key markets will allow them to earn incremental revenues on much higher margins due to operating leverage. But just to play the devil's advocate, let me try to put things in numbers.
ENIL has invested close to 350 crores in the auctions, which means that in order to meet the post tax IRR assumption, they're need to earn additional cash profits of 55 crores (350 crores X 16%) or so. Additionally, they will also need to recover close to 25 crores they will lose by way of interest income (post tax). So essentially, they will need to earn an additional 80 crores at the end of their stated gestation period of 2 years in order to justify the Investment.
Currently they earn between 120-130 crores post tax cash profit (after adding amortisation charges)
I feel is that this will be a steep challenge. I have no doubt on the management's capability but I think if anything goes wrong the downside is not protected at these valuation levels
But I would love to see your calculation on the IRR if you don't mind sharing it. Just so that I know where I'm thinking incorrectly.
Hi guys,
I was studying the AR of 2015 and I had following concerns.
1. Employee benefit expenses increased from 7.83 cr in FY2014 to Rs. 16.65 cr in FY2015. As per the Related Party Disclosure salary of management has increased by 6.06 cr. in Fy2015. So major increase in employee benefit expenses has gone to management.
2. Contingent Liabilies of the company has increased from 37.32 cr in FY2014 to Rs. 63 cr in FY2015, Rs. 20.89 cr increase is due to Central Sales Tax. As per the auditor's report cases under Central Sales Tax Act has been opened from the period 2006-07 to 2012-13.
It would be helpful if anyone can throw some light on it.
Regards
Harshit
Disclosure: Invested
I totally agree with your views. Only negative I can think of is low or rather NIL growth in Acrylic business. Management commentary in the recent past also is silent on any expansion or growth plans.
In this scenario, huge cash is a drag as it delivers suboptimal returns. Inefficient allocation of capital by retaining idle cash .
But core Acrylics business looks good. Healthy margins and outlook also stable.
Someday, valuation will catch up. Until then, stay invested.
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