Management Interviews – Aarti Industries, Hester Bio, KEC International, Godrej Agrovet, JBM Auto, Suven Life

Aarti Industries - Rajendra Gogri, MD

 

  • Demerging Home & Personal care business as it is relatively small and customer base and manufacturing facilities are completely different, so once hived off - separate focus can be given
  • Merging manufacturing business of Nascent chemicals (Subsidiary of Co.), which will be strategically good for company and JV partner have also shown willingness
  • We had 9% volume growth for the quarter and substantial improvement in pharma
  • 9-10 crores impact was because of forex for this quarter
  • FY 19 - expecting substantial growth in volumes as capex already done
  • FY 19 - Looking at 15% volume growth and bottomline growth of 20%
  • 18-20% cagr in bottomline is possible for next 3-4 years

Full Interview :

https://www.youtube.com/watch?v=2MJ4fxMaHHU

 

Hester Bio Sciences - Rajiv Gandhi, MD

 

  • Capacity of poultry vaccines have just commissioned
  • Expecting good tender business for PPR vaccines
  • Looking at 15-20% growth in this F.Y.
  • Creating infrastructure in Africa and expecting atleast 100% growth as far as exports are concerned
  • 2 large animal vaccines are in the pipeline and 1 poultry vaccine besides a few diagnostic kits
  • Commissioned a new capacity in poultry vaccines, will increase our capacity by 35-40%.
  • Need not put any new capacities for large animal vaccines and still can increase business by 100-150% with current capacity
  • No expansion needed in Nepal for PPR vaccines
  • Expanding in Africa and building project in Tanzania to manufacture for African specific animal diseases

Full interview:

https://www.youtube.com/watch?v=xVdaJCFQThw

 

KEC International - Rajiv Agarwal, CFO

 

  • Margins at 10.1% vs 9.3% for year as a whole, Q4 margins at 10.1% vs 10.4% yoy
  • Revenue growth from railways is significant, margins are still catching up there
  • Next year expecting topline growth of 15% and margins of close to about 10%
  • Closing order book of 17,300 crores
  • On international front order intake is not so great, faced many headwinds
  • Railway order book is around 5000 crores, expect revenue to double in current financial year from 850 cr to 1500-1600 cr

Full Interview:

https://www.youtube.com/watch?v=rEXFFptB524

 

Godrej Agrovet - Balram Yadav, MD

 

  • Had a PAT growth of 6%, if we remove exceptional gains in last year
  • Agrochemical business had 13% growth
  • Oil Palm Plantation had 15% growth
  • Astec growth 18.5%
  • Dairy buinsess 14.5% growth
  • Bangladesh business 12.5% growth
  • Animal feed business 8% volume growth annually and 18.5% in Q4
  • All businesses are planned for mid-teen growth
  • Last year we launched rice herbicide based on bispyribac sodium and snatched some market share because it is getting lot of acceptance among farmers
  • No. of sprays in agro chemicals have to be reduced, so planning to launch combinations
  • Have launched flavoured milk, will launch UHT Milk, UHT Lassi, Buttermilk, Yogurts in dairy segment
  • If commodity prices go down, it is good for us as animal feeds raw material cost will go down
  • Oil prices are protected by import duty
  • Something needs to be done for pro active export policy so that domestic price can be stabalised

Full Interview :

https://www.youtube.com/watch?v=Nhp9JDay9vA

 

JBM Auto - Nishant Arya, ED

 

  • 9% topline growth on annual basis and 15% growth in this quarter
  • In coming years we will be growing at 20-25% minimum
  • Invested in designing and R&D capabilities
  • FY18 - 85 crs topline in tool room division and rest from component division
  • Focus on electric buses will contribute significantly in FY19
  • Collectively for all the business put together we are targeting 2500 crores of revenue
  • In few weeks will be announcing orders bagged in bus division
  • Last quarter is generally the best quarter for the year
  • Will try and target to take margins to 14% mark
  • Merging subsidiaries and JV's to JBM Auto

Full Interview:

https://twitter.com/CNBCTV18News/status/996312597275201536

 

Suven life sciences - Venkat Jasti, CEO

 

  • Specialty chemicals business have come down while CRAMS have gone up
  • One of the item in phase III has moved to ANDA submission which have given good jump on topline and bottomline
  • R&D spend would be in 10 mn $ range for pre clinical development upto phase I
  • Suven 502 is in final stages of enrollment whose study results will be out in 2nd qtr of next year
  • Suven 3031 will be entering into phase II
  • CRAMS - Order book cant come until progress of molecules goes into next stage
  • Formulations business are ANDA based activities, only when it matures into operations then only it can be monetized which will happen in 2019-20
  • Core CRAMS expectations - 10-15% growth YoY basis

Full Interview :

https://twitter.com/CNBCTV18News/status/996303470318706694

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