Hi anurag

share your feedback from AGM

Guys just read the IndiaNivesh update on company post meeting management. Here are some tit-bits

Excavation work for IT Building 4 is expected to commence in Q2FY16 with approvals in place. The total capital expenditure of Rs3bn over FY16-18E is planned. In FY15 the company invested Rs990mn and bought additional FSI of ~0.63 mn sq. ft. With this addition the total built]up area for IT Building 4 will be 1.76 mn sq. ft. The company also has
ambitious plans for IT Building1 & 2 but waits for the change of Development Plan for taking advantage of additional FSI for IT/ITES sector.

In FY15, the segments delivered 10% y/y revenue de-growth and contributed 38.5% to the overall revenue. The segment witnessed decrease in revenue in FY15 due to few cancellations and underutilization of space. However, BEC has witnessed a CAGR growth of ~28% in the past ten years on back of its location advantage [~0.45 mn sq. ft. of space combined with attractive offering]. As a result, BEC has been able to increase its monthly rental to Rs 159/per sq. ft (FY15) from Rs. 27/per sq. ft (in FY06).

With increasing utilization, Nesco initiated the process to expand the halls area from 0.45 mnsqft to 1.00 mnsqft However, management would wait for new development plan (DP), which will increase the FSI to 4 (v/s existing FSI of 2). In that case, the company will be able to make 1.5 mn sq. ft. of Exhibition Area (v/s 1.00 mn sq. ft. planned). The capex requirement of this project should be in the range of Rs 5.5-6.0 bn over next five years. However, this
assumption is completely based on the government approvals.

Indabrator(Capital Goods Division) is leading manufacturer, supplier and exporter of surface preparation equipment’s, providing services to various Indian industries; mainly Foundries, Forging plants, Automotive industries, Indian railways, Defence organizations, Heavy engineering industries, Ship building industries, Chemical & petrochemical industries etc. Although since past two years Indabrator was generating loss on account of economic slowdown. In Q1FY16, segment reported 141% y/y growth in revenues (to Rs 73 mn) & PBIT margin were 11% of segment revenue at Rs 8 mn (v/s loss of Rs3.2 mn in Q1FY15). The management expects 20% y/y revenue growth for industrial division in FY16.

Disclosure: Invested

I have been studying Sugar in international markets since 2007s…. I have seen 15cents go to 35 cents within months and back down to 10-13 cents range over last 7-8 years.

I am very tempted to call a bottom in Sugar here around 10-13 cents….could see a good upside push towards 20-25 cents by 2016 end.

Its a gut based on a long study of the cycle.

Cheers
Neil

Bit late here, but in AGM did management mentioned anything about their plans about merger if any they have or if they want to keep both companies as separate entities for now?

Disc: Have taken tracking position last month @ 101 Rs.