Vivek – do you have the company secretary’s contact details? Would be good to check the volume trend and future outlook from him/her.
Posts tagged Value Pickr
Vinati Organics (10-11-2015)
Good to see some activity on this thread. Have been holding Vinati for ~1.5 years now, very little research material available – no con calls, analyst reports are tough to find.
Though the company has been reporting good bottom-line numbers since last few quarters, price has been going down for last 6-8 months. Went through the Annual report, didn’t find any negative.
Top line has been coming down due to RM price pass through but it will be good to see the volume trend if we can get it disclosed by reaching the Investor Relations desk of Vinati.
Disclosure: Holding ~10% of portfolio for ~1.5 years.
Marksans Pharma- Can it be the next Pharma Biggie? (10-11-2015)
Q2 Results are out…
Consolidated Revenue Grew by 21.38%
Consolidated Profit is flat because Q2: Cons EBITDA Margin At 20.1% Vs 24.2% (YoY): (Employee Expense is up 100%)
US Business grew by 107% H1 FY15 To H1 FY16 . Contributed 33% of revenue .
Europe and UK formulation business degrew by 9% H1 FY15 To H1 FY16..Contributed 52% of revenue .
Australia & NZ business gre by 10% H1 FY15 To H1 FY16.
It seems , UK business hurt by UK regulatory import alert to Relnochem from Marksans India facility.
I don’t now how Company Secretory is telling it is not a worrying factor and revenues wont be affected ? Relnochen contributed 17% of revenue and Bell & Sons contribute 25% of revenue . Now it is clear that Europe business is suffering from that alert.
Styrolution ABS – MNC due for rerating (10-11-2015)
Held this years ago when it was Bayer ABS & later Lanxess ABS, had decent returns then. Was considering buying it again but the business growth hasn’t translated to similar growth in the bottom line.
Va Tech Wabag (10-11-2015)
Rajiv Mittal, MD & S Varadarajan, ED addr the call.Highlights by Capital Mkt
For the quarter ended September 2015, Va Tech Wabag reported a 19% rise its consolidated sales to Rs 602.46 crore. OPM crashed from 6.8% to 7.7% which pulled OP up 34% to Rs 46.50 crore.PBT grew 33% to Rs 30.33 crore and net profit fell 6% to Rs 14.63 crore.For six months ended September 2015, Va Tech Wabag reported a 17% rise its consolidated sales to Rs 1058.97 crore. OPM fell from 6.5% to 5.5% which pulled OP down 1% to Rs 58.57 crore.PBT fell 22% to Rs 30.12 crore and net profit dived 82% to Rs 4.75 crore.
The company’s strategy to grow in diversified grographies has enabled it to deliver consistent order intake notwithstanding the muted progress in the Indian market.Order intake stood at over R. 3080.40 crore.Order Book stood at Rs 8617.70 crore & Framework Contracts of Rs 1540 crore.Thanks to its healthy order backlog it was able to fast track execution in India market amidst tight liquidity situation in the market by supporting sub-contractors and suppliers.
The company has total order backlog of Rs 8600 crore including Framework Contracts of Rs 1500 crore. Order backlog provides visibility for 3 years.
Good opening backlog and increased focus on project execution has resulted in growth of sales and EBITDA.The company incurred increased cost of sales to extent of Rs 5 crore due to extended stay at site in the Oman desal project and in general mix of projects for the quarter.
The company has classified the site employee cost for Istanbul O&M Project in Turkey under Cost of Sales in September 2015 quarter and accordingly aligned the numbers of prior period.
Overall, overheads in general were tightly controlled
Euro depreciation of 12%, delay in Nepal project due to local conditions, Oman project nearing completion, many overseas projects being under engineering completion contributed to drop in overseas revenue in September 2015 quarter.Cost of sales vary from quarter to quarter depending on the mix of projects.Tight control of overheads has led to reduction in TCO and higher EBIDTA.There was also reduction in provision for receivables.Interest cost grew 76% to Rs 10.87 crore. Increase in finance cost was largely due to increase in Interest charges on account of Ujams BOOT Project in Namibia (was IDC during prior period) and reduction in interest income.
The management feels that Africa and South East Asia are largely untapped- emerging economies and the company can have competitive edge through Indian support.In Middle East the company has >50% of Desal market in Saudi. This market has high potential for advanced technologies.In Europe, the company has over 100 patents in its R&D Centre. Its setup in Europe acts as references for global business.
Exchange rate for balance sheet used for Sep 15 of 74.45 had 10% increase over FY Mar 15 of 67.93 rate.Current liabilities grew 10% to Rs 1486.5 crore due to increase in short term borrowings for working capital.The company took 6 Projects to completion during the first half.
The company now has a separate team for project closure which leads to focused attention on closing projects.The company resorted to use its cash in Balance Sheet for Speedier execution as sub-contractors and vendors face tight liquidity market situation.
One of the key orders received in September 2015 quarter was order from Petronas RAPID ETP, Malaysia worth Rs 1534.50 crore. This is the biggest ever order secured by the company. This gives immense confidence to the company as it secured the order in competition with established foreign players. This order proves the company’s technology superiority in providing large complex projects in overseas. 70% of this order book is with the company and the rest is with the JV partner.During the quarter the company also won new orders in the O&M space and advanced technology order in Switzerland for a modern biological membrane.Organization realignment is aimed to gear up its human capital towards achieving its target of becoming 1 billion Euro group.Networking capital excluding cash stood at 59 days of sales.Government is working fast towards its commitment of smart cities, Swach Bharat and Namami Ganga. In coming years, the company expects strong orders from the Indian geography.
Guidance range for FY 16 revenue is Rs 2800 crore – Rs 3000 crore & Order Intake guidance range is Rs 3500 crore – Rs 3700 crore
REPCO home finance – another Gruh in the making? (10-11-2015)
R. Varadarajan – Managing Director addressed the call:Highlights by Capital Mkt
Loan book of the bank jumped 31% to Rs 6848.8 crore at end September 2015, driven by strong 42% surge in disbursements to Rs 1356.4 crore and sanctions by 46% to Rs 1519.6 crore in Q2FY2016 over Q2FY2015.
As per the company, the loan growth was driven by all geographies. The company has expanded operations to Maharashtra and Gujarat five years back. These states contribute 7.5% of loan book, while its share in loan book is expected to further rise to 10% in few years.
The company continues to hope to maintain loans growth in strong 25-30% range.
The company has continued to diversify sources of funding, strengthening case for ratings upgrade.
Loan book mix between home loans and LAP was 80.8:19.2 at end September 2015 compared with 80.5:19.5 at end September 2014.
The customer mix between salaried and non-salaried was 42.4:57.5 at end September 2015 compared with 44.3:55.7 at end September 2014.
Average ticket size for the company increased to Rs 12.8 lakh at end September 2015 from Rs 11.6 lakh a year ago. An incremental loan ticket size was higher at Rs 16.8 lakh in Q2FY2016 with Rs 15.4 lakh for home loans and Rs 23 lakh for home equity.
The company has continued to maintain the LTV ratio at 50%.
As per the seasonal trend, GNPA ratio dipped to 2.22% at end September 2015 from 2.22% at end June 2015. NNPA ratio also declined to 0.92% at end September 2015 from 1.29% at end June 2015.The company do not have any asset quality concerns, while proposes to reduce GNPA to industry level
State wise GNPA position was Tamil Nadu 1.5%, Karnataka 1.9%, Andhra Pradesh 2.1%, Telangana 3.9%, Kerala 4.1%, Maharashtra <1% and Gujarat 1.5% at end September 2015.
Provision coverage ratio (PCR) of the company improved to 49.5% at end September 2015 from 42.4% a quarter ago. The company intends to improve PCR to 100% in next 2-3 years.
Spread stood at 2.95% and a NIM at 4.45% in Q2FY2015. Company expects to sustain target of 3% spread and NIM above 4%.
Capital adequacy ratio/CAR continues to be comfortable at 19.4% at end September 2015. The company expects CAR ratio to benefits from regulatory reduction in risk weights for housing loans in Q3FY2016.The cost-to-income ratio stood at 21.3% for Q2FY2016, including ESOP expenses and 18.5% excluding ESOP. Company expects to maintain the cost-to-income ratio at around 21% till end March 2017.The leverage ratio of the company stood at 6.6X, which company can raise to 9% with any rating impact.
Arvind infrastructure: Godrej Properties in the making? (10-11-2015)
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Indian terrain—play on consumption (10-11-2015)
In my opinion, out of 75 crores QIP funds, they have prepaid long term loans of Rs. 16 crores. Of rest 59 crores, 16 crores would be indirectly used for purchase of land from celebrity, and remaining for working capital requirements, advt campaign spend and new product launch expense. Its very important that they use this funds productively to improve efficiency and volumes of their business. We need to keep close watch on where these funds are getting used.
Normally in QIP, company sees proper market conditions and raises funds for their requirements of next couple of years. So that funds will be gradually used. Proper use of funds is very crucial.
Indo Borax and Chemicals (10-11-2015)
Hi Aveek,
Trust by now you would have gone through the AR and got your answer.
Price paid for balance 40% is ~1 Cr which seems ok. Also in the last FY ~8 Crores of loan from holding company was paid back by Indoborax infra to Indoborax chemicals which is another positive.
Overall, I see positive developments and good times to come for the company after expansion.
P.S. Invested at CMP
Duke Offshore – Hidden Gem? (10-11-2015)
One thing I noticed is that Duke hasn’t given a notice to BSE about results date before declaring results in the past as there has been no such data in corporate announcement section. Is it normal or should we ask the management to give a notice to BSE for results declaration date.
Adding to it had a talk with CS on two instances( October last week and November first week), both weeks was told that results were due next week.
Duke has mostly declared results on time in the past. This time it seems to be delaying. Don’t know what’s taking them so long
Discl.: Invested