Call was addressed by Prashant Panday MD and CEO.Highlights by Capital Mkt
Sep'15 quarter earnings include costs that are built in for Phase 3 auction. On like to like basis, Ebidta would have grown by 20% and PAT by 26% for Sep'15 quarter on YoY basis.The entire revenue growth of 11.6% for Sep'15 quarter was led by price increase and better product mix. There was a price increase of about 7.5% in Sep'15 quarter and volume de-growth of about 3%.Volumes in major metros were higher on YoY basis, while in other market were lower on YoY basis.The company operated at 97.5% capacity utilization led by Metros. The entire focus in Sep'15 quarter was on pricing and company let go some of the volumes. Also the company increased its distribution of frequency in late night stations. Distribution of delivery was planned very well during the quarter.
Metros have done stronger due to E-commerce sector. E-commerce contributed about 11% of total revenue as compared to 4.7% YoY. Other sectors that positively contributed include Government, Auto and Automobile sector, BFSI sector. Some sluggishness was seen in sectors like Retail, Durables, Telecom and Media and Entertainment etc.The company bid very rationally in Phase 3 auction and there was no overbid. Entire migration of 36 stations was done at almost same license price. The company now holds license for next 15 years.
The company added new cities like Kochi, Chandigarh, Calicut, Gawahati, Jammu, Srinagar and 4 stations were acquired from TV today. With this, the company has now presence in more than 40 cities in the country.The company also acquired 2nd frequency and 2nd brand in the 12 out of total top 13 markets in the country. These 13 markets contribute about 70% of total revenues. This 2nd frequency will generate higher Ebidta as most of the programming and other costs are more or less the same. The company plans to do more with the product and will launch gradually.In all, the company spent about Rs 340 crore in Auctions of Phase 3 and on Migration led costs.Overall, management expects the Radio industry should grow around 12% in FY'16.
Posts tagged Value Pickr
Enil (30-10-2015)
Kitex Garments Limited (30-10-2015)
Are we not over analyzing stuffs ? just asking
Cera SanitaryWare Ltd (30-10-2015)
Mr. Bharat Mody, strategic advisor addr the call.Highlights by Capital Mkt
Bathroom products maker Cera Sanitaryware has achieved 13% rise in top line to Rs 225.30 crore and a 14% increase in net profit to Rs 17.88 crore in the second quarter of the current fiscal ended on September 2015.The company witnessed growth in all segment in Q2, with highest growth witnessed in Faucetware, meanwhile modest growth observed in Sanitaryware and Tiles segment. The company registered growth of 44% in Faucetware, 16% in tiles, and 8% in sanitaryware in Q2FY16.The Company received 63% business from sanitaryware, 21% business from faucetware,13% from tiles, and balanced 3% from allied products. The Company expects sanitaryware business will reduce to 58% from present 63% in mid-term (3-5 years), but faucetware, tiles, and bathroom ware business will increase during the period.The company hasutilized 90% ofincreased faucetware capacity of 7,000-8000 units a day in Q2 FY 2016 and plans to achieve a 95% of capacity utilization by end of FY 2016.The company has maintained rolling capex of around Rs 180 crore for next 3 years which will mostly funds from internal accrual.The company plans expansion of sanitaryware capacity to around 32-33 lakh units from present capacity of 30 lakh units.The Company has entered into a joint venture agreement with Anjani Tiles for setting up a plant to manufacture high-quality ceramic vertified tiles, in Andhra Pradesh. The Company envisages building initial capacity of around 10000 sq meter per day with initial project cost of around Rs 68 crore. The commercial production is expected to start by end of FY 2016.
The Company also decided to open offices in Dubai and/or Sharjah in order to increase exports to West Asian countries.The company has taken price hike of around 3-7% across the products effective from 1st December 2015 to maintain healthy margin.
The Company maintains marketing expenditure of 4.5% as a percentage of sales. It includes media budgets, also includes marketing.The Company has lowered its revenue guidance to 18-20% for FY 2015 from previous forecast of 20-22% due to lack of demand for the products amid low replacement demand from consumers and sluggish growth in real estate sector. Also, the company guides to maintain EBITDA margin at around 15%.
Anyone looked at Somany Ceramics (30-10-2015)
Mr. Abhishek Somany, Jt MD, addr the call.Highlights by Capital Mkt
The Company has delivered decent set of numbers maintaining positive trajectory on Volume growth and market share gain despite seasonally lower Q2 and first half and challenging demand environment. The Company strong Brand has helped to maintain Business momentum.Loss in volumes due to truck strike in late September and an exceptional loss of Rs 3.8 crore pertaining to last year impacted the second quarter earnings. The Company lost out of about Rs 22-23 crore of sale partly on the 29th and on the 30th on non-availability of trucks. The Company has paid Rs 3.83 crore to GAIL India towards one time settlement of ‘Pay for If Not Taken Obligation' for CY14.Net sales of the Company grew 8.4% YoY to Rs 403.33 crore in Q2FY 2016 and rose 13.2% to Rs. 794.79 crore in H1FY 2016. Q2FY 2016 PBT before Exceptional Item grew by 24% to Rs. 20.28 crore, a margin of 5%. In H1FY 2016, PBT before Exceptional Item grew by 27.3% to Rs. 36.36 crore, a margin of 4.6%.Q2FY 2016 PAT grew marginally to Rs. 10.65 crore and 13.8% to Rs. 21.14 crore for H1FY 2016
The Company gross revenue grew 8% YoY to Rs 419.48 crore in Q2FY16. The revenue mix was Rs 147.54 crore from own manufacturing, Rs 170.73 crore from JVs, and Rs 101.21 crore from outsourcings. For H1FY 2016, gross revenue grew 13% YoY to Rs 827.48 crore, with revenue mix was Rs 294.81 crore from own manufacturing, Rs 337.66 crore from JVs, and Rs 195.01 crore from outsourcings.
Sales mix in Q2FY 2016 was Own manufacturing (35%), JV (41%) and Others (24%) while for H1FY 2016 sales mix was Own manufacturing (36%), JV (41%) and Others (23%)
As on September 30, 2015, the Company total debt stood at Rs 199.60 crore as against Rs 187.76 crore at end of March 2015. Working capital days increased to 43 days for H1FY 2016 from 39 days in FY 2015. Also, leverage ratio stood at 0.73 in H1FY 2016 as against 0.74 in FY 2015.
Operational Performance - The Company tiles business sales volumegrew 5.7% YoY to10.78million square meters (msm) in Q2FY 2016, while it rose 9.7% to 21.49 msm in H1FY 2016. For Q2FY 2016, sales volume mix was 4.6 msm from own manufacturing, 3.88 msm from JVs and 2.30 msm from others. For H1Fy 2016, sales volume mix was 9.13 msm from own manufacturing, 7.82 msm from JVs and 4.54 msm from others.
Capacity Expansion- 1) The Company plans to increase capacity to ~60 msm p.a. by end of Q1FY 2017 from current capacity of ~56 msm p.a.2) Somany Fine Vitrified Private, a subsidiary company expected to commence production of 4.3 msm p.a. of polished vitrified tiles in October 2015. 3)The Company brown field expansion at Kassar plant, Haryana, to produce 4 msm of glazed vitrified tiles is expected to be commissioned in Q1FY17.The Company remainsoptimistic about its future growth prospects in general and building and construction material industry in particular especially in the backdrop of various initiatives being taken by the incumbent government which would fructify in near future.The company remains confident over demand growth for H2FY 2016 on hopes that (i) Pay commission and One Rank One Pension (OROP) are likely to boost demand, (ii) CSR activities of Corporate India will pick up further steam than in the previous year helping overall industry growth, (iii) Exports continue to offer growth opportunities, and (iv) The recent cut in mortgage rates is likely to spur demand for Real Estate benefiting Buildings Material industry immensely.The Company guides tiles industry would benefit in coming quarter after initiation of anti-dumping duty on vitrified tiles by the Ministry of Commerce. Also, Government machinery is moving at a healthy clipping and will improve sentiments and demand prospects for the Buildings Material Industry.
The Company guidesGovernment plans for smart cities, dedicated freight corridor, Swachh Bharat Abhiyan, and housing for all will also bode well for Buildings Material Industry.80 Lakh Toilets built under the Swachh Bharat Abhiyan. Huge sums allocated by Corporate India under CSR. Framework laid for Smart Cities & Make in India programs; to lead to enormous investments and improve the quality of living in India. Relative Strength in Economy has allowed for cut in Interest rates leading to lower Home loan rates in nearly 4 years.
The company guides capex of Rs 100 crore for next 2-years. Of the total capex, the company guides a routine capex of Rs 30 crore and Rs 70 crore for brownfield expansion for FY16 and FY17.The Company trims topline growth of around 15-16% for FY 2016 from earlier guidance of 18-19%.The Company plans to take price hike between second half of December 2015 – January 2016.
Canfin homes ltd (30-10-2015)
Another HFC, which is even faster growing than can fin plans for an IPO
ie PNB housing finanace, it is growing really gud, with low NPA, better brand name etc.
Even we have their numbers discussed in past in this thread.
So, how will this impact can fin during listing time ?
dpnds they come with which valuations ?
can this lead to some rerating again ? wishful thinking
rgds
Elecon Engineering Limited (30-10-2015)
Call addr by Mr. Prayasvin Patel CMD & Mr. Rajat Jain CFO.Highlights-Capital Mkt
Co bagged orders worth Rs 112 crore in Sep'15 quarter in Gears division domestically as compared to Rs 107 crore of orders in Sep'14 quarter, and total order book position as on Sep'15 stood at Rs 258 crore as compared to Rs 275 crore in Sep'14.The company continues to remain cautious on order intake and was very selective. Given the order backlog, outlook remains robust for execution in coming quarters.Management continues to remain optimistic for orders and its execution in H2 FY'16. As per the management, the open cast mining would see more inflow of orders in next 9 months time frame. Upsurge will happen in order inflow in H2 FY'16.Defense, sugar and fertilizer sector are showing good traction and good orders are expected in H2 FY'16.Ebdita margins at consolidated level was around 13% in Sep'15 quarter largely due to improvement in international gear business and domestic gear business and increase in sales of spare parts together with tight costs control initiatives.
Elecon EPC or the MHE business sales stood at around Rs 101 crore in Sep'15 quarter with a loss of about Rs 12 crore and international gear business reported sales of Rs 74 crore for Sep'15 quarter with PAT of Rs 1 crore.Elecon EPC business has an order book of around Rs 1000 crore and international gear business has orders of around Rs 60 crore as on Sep'15.
Overseas entity Ebidta is expected to remain around 7% going forward for rest of FY'16.
Overall, management expects around 10% growth in consolidated net sales and Ebidta margins of around 12-13% for FY'16.Debt at consolidated level as on Sep'16 stood at around Rs 632 crore.The company is operating at 45% of capacity for gear business and there are not much capex planned for next 12 months.As per the management, so far not much benefit of lower steel prices was visible to the company as the company always booked the raw material on back to back basis.Around Rs 275 crore is the retention money lying with customers for more than 1 year now. Management expects Rs 60 crore of recovery before Mar'16.
Shirram City Union – Bet on MSME Financing (30-10-2015)
GS Sundararajan, MD &Subhasri Sriram, ED addr the call:Highlights by Capital Mkt
The company continues to exhibit steady growth across all segments in Q2FY2016, while well penetrating in to all geographies. The company expects second half of FY2016 to be better in terms of growth.Assets under Management (AUM) growth of the company accelerated to 17% at Rs 18165 crore at end September 2015 against a growth of 16% a quarter ago and 3% a year ago.The disbursements increased 9% to Rs 4527 crore in Q2FY2016 over Q2FY2015. Segment wise disbursement stood at Rs 1995 crore - small enterprise finance, Rs 800 crore - two wheelers, auto loans - Rs 200 crore, personal loans Rs 250 crore and Rs 1291 crore – gold in Q2FY2016.Off-balance sheet AUM of the company stood at Rs 500 crore, which is less 3% of AUM. The company has not conducted any securitization deals in H1FY2016, while expects to conduct securitization deals only in Q4FY2016.Overall Gross NPA ratio rose to 3.3% at end September 2015 from 3.17% at end June 2015. However, the Net NPA ratio was maintained at 0.65% with strong provision coverage ratio of 80.2% at end September 2015.Write-offs stood at Rs 71.23 crore, GNPA ratio including write-offs, stood at 3.69% at end September 2015.
Gross NPA increased by 50 crore in Q2FY2016 to Rs 582 crore at end September 2015, mainly contributed by small enterprise finance and gold loan book.Gold Loan Book GNPA stood at 2.55%, while non-gold GNPA was at 3.51% at end September 2015.
The company plans to shift NPA recognition norms from existing 180 days to 150 days over dues basis on 31 March 2016.As per the company, the GNPA would double to Rs 1000 crore from present level of Rs 582 crore, after shifting to 150 days over dues NPA recognition norms from present 150 days.Based on the current balance sheet position, the company estimates GNPA to be at Rs 1300 crore on 120 days and Rs 1700 crore on 90 days over dues basis.
With the huge customer base and small ticket size, the company and its collections teams are educating customers to adapt to the new NPA recognition norms.
Shriram Housing Finance:Shriram Housing Finance has crossed the AUM level of Rs 1000 crore at end September 2015. The AUM comprises mainly 90% of retail loans and 10% builder finance.The branch network of the company stood at 77 branches at end September 2015.
During the quarter, Shriram Housing Finance has tightened its NPA coverage and provisioning norms, which had a impact of Rs 1.2 crore on profitability. Accordingly, the provision coverage ratio was raised to 24% from 18%.
Tata elxsi (30-10-2015)
Highlights of the call by Capital Mkt
On sequential basis, Tata Elxsi registered 11% rise in its consolidated sales to Rs 269.66 crore for the quarter ended September 2015.OPM fell 30 basis points from 23.0% to 22.7% which saw OP rising 9% to Rs 61.28 crore.PBT rose 7% to Rs 58.31 crore.PAT rose 7% to Rs 38.10 crore.On y-o-y basis, sales jumped 31% and OPM rose 240 basis points from 20.3% to 22.7%. OP was up 47%. PBT grew 66% and PAT was up 61%.
Embedded product design (EPD) accounted for 80.9% of sales.Industrial design (ID) accounted for 12.3% of sales.System Integration accounted for 6.0% of sales.Visual computing Labs accounted for 0.80% of sales.For the six months ended September 2015, Tata Elxsi registered 28% rise in its consolidated sales to Rs 507.18 crore.OPM improved 240 basis points from 20.0% to 22.4% which saw OP rising 43% to Rs 113.60 crore.Other income jumped 191% Rs 210.28 crore.Other income includes Rs 4.3061 crore forex gain against a loss of Rs 39 lakh.PBT rose 71% to Rs 112.91 crore.PAT rose 66% to Rs 73.82 crore.
For the six months, Embedded product design (EPD) accounted for 80.5% of sales.Industrial design (ID) accounted for 11.9% of sales.System Integration accounted for 6.7% of sales.Visual computing Labs accounted for 0.90% of sales.On y-o-y basis, sales jumped 31% and OPM rose 240 basis points from 20.3% to 22.7%. OP was up 47%. PBT grew 66% and PAT was up 61%.
Of the increase in employee cost, around 85% rise is due to salary revision effected from July first. Rest was due to change in offshore/onsite mix and rise in head count.Current head count is 4500.For the six months ended September 2015, Tata Elxsi registered 28% rise in its consolidated sales to Rs 507.18 crore.OPM improved 240 basis points from 20.0% to 22.4% which saw OP rising 43% to Rs 113.60 crore.Other income includes Rs 4.3061 crore forex gain against a loss of Rs 39 lakh.PBT rose 71% to Rs 112.91 crore.PAT rose 66% to Rs 73.82 crore.The quarter was steady for EPD business. Main component for EPD business is transportation and broadcasting business.Transportation business saw good spread in customers and geographies. The company diversified revenue mix in this segment.Broadcast business saw good traction in OEM and tier I customers.Utilization rate little less than 75% during the quarter. So there is a little bit of head room, not too much.Margins won't be very different in next few quarters.The company is seeing good opportunity in health care.The management does not see any cause for alarm regarding growth rates going forwards vis a vis current growth rates.
Supreme Industries (30-10-2015)
Call was addressed by Mr. M P Taparia MD-Key highlights by Capital Mkt
There was a volume growth of 16.5% to 57226 MT and value growth of 5.6% to Rs 755.21 crore for the quarter ended Sep'15 on YoY basis.Sale of value added products stood at 32.31% Vs 29.18% on YoY basis.Plastic piping business value wise grew by around 14% and 26% in volume terms during the Sep'15 quarter. The segment reported an OPM of around 13.5% for Sep'15 quarter as compared to 12.6% for Sep'14 quarter.
Packaging products value wise de-grew by around 0.6% and grew volume wise about 4% in during the Sep'15 quarter on YoY basis. The segment reported an OPM of around 15.5% for Sep'15 quarter as compared to 13.1% for Sep'14 quarter.
Industrial segment value wise de-grew by around 12% and de-grew by 1.9% in volume terms during the Sep'15 quarter on YoY basis. The segment reported an OPM of around 9.7% for Sep'15 quarter as compared to 9.3% for Sep'14 quarter.
Consumer segment value wise grew by around 14% and 10% in volume terms during the Sep'15 quarter. The segment reported an OPM of around 11.2% for Sep'15 quarter as compared to 7.8% for Sep'14 quarter.The company expects to incur a capex of about Rs 200 crore for 9 months ended FY'16. Management expects commercial production of new units to Kharagpur and Malanpur to commence from Nov'15 onwards. Entire capex will be through internal accruals.The prices of raw material moved downwards during Sep'15 quarter. Management expects overall raw material prices to remain in range bound fluctuations and affordable.The company has received its first export order of US $ 55000 of CPVC fire sprinkler system in Sep'15 quarter.Also, the company expects to supply about 5000 pieces of Composite LPG cylinders to South Korea in Dec'15 quarter and expects tender from Government refineries for their requirement of about 8000-12000 pieces of composite cylinders in Dec'15 quarter.Average debt stands at around Rs 350 crore as compared to around Rs 500 crore on YoY basis. An average cost of borrowing is about 8.9%.
The company holds about 63800 sq feet of saleable are of supreme chambers and will sell at appropriate prices.Subsidy for Sep'15 stood at Rs 1.29 crore as compared to around Rs 6 crore in Sep'14 quarter.CPVC volumes and value stood at 2712 MT and Rs 75 crore for Sep'15 quarter as compared to 2054 MT and Rs 55 crore for Sep'14 quarter.Piping Industry growth was around 12-13% as compared to 26% growth in piping business for the company. Most of the growth in piping came from housing.More sale of value added product has resulted in higher realization in consumer product segment.
Agriculture was better in Oct 2015 on YoY basis and demand should be better in H2 FY'16 for piping segment.Material handling division has grown in volume terms by 7%. Industrial segment volumes were lower by 6% and were lower by14% in value terms due to tough times of industries. Both automotive and non-automotive segment have suffered in Sep'15 quarter.
The company expects to achieve volume growth of around 15-18% for 9 months ended March 2016. Management expects about Rs 3200 crore to Rs 3300 crore turnover for 9 months ended Mar'16, unless there is a major movement in raw material prices. OPM is expected to remain around 13.5% for 9 months ended Mar'16.
Kitex Garments Limited (30-10-2015)
Ya he did not reply anything to his competitors like gimmell and wingloo which are ahead of him and infact comparing with vietnam and bangladesh which everybody knows will not be able to compete.
I consider that waiting or timing the dollar price is totally foolish thing to do ( you are waiting for 3% gain and giving 8% of short term loans...makes no sense ) how can a business man can do this?
We need to think why he is doing so, what could be the reason?
TPP : Still did not understand and I think we should dig deeper on the implification of this treaty, he sounded confident on that ( I need to check what actually it is, does this treaty really a threat ) then all our textile exporting company will be in threat i.e indocount, nandan denim to name few.
Brand development : I think he knows brand building is very difficult and costly affair and not safe for this size of company, so he has started with brand licensing and along with that developing own brand which can share the shelf in the stores with other brands ( retailers for whom he is manufacturing and doing business for such a long time and having good relations )....my thoughts ( could be not convincing )
Even if they are able to achieve sales of 50 - 100 million dollars for own brand it can be a terrific addition to the bottomline.
I would still give benefit of doubt to Kitex because they are in wonderful business, corporate goverance is a issue ( need to be very vigilant on this issue for every action taken by management )
Disc : Invested