Author: Harsh Doshi

Mcleod Russel - Kamal Baheti – CFO

• Old season crop got sold must faster, last year demand was very strong and inventories were lower

• Production for this season started in middle of march,demand is very strong, prices are little higher ~₹25-30/kg

• Generally 100% absorption at auction never happens, 70-80% absorption is considered good

• After 3 years we have seen positive momentum in prices and if auction happens at ₹25-30 it will augur well for our margins

• Wage agreement is due to be implemented from Jan 2018, will have to see its impact on cost

• After wage increase we estimate to increase margins by ₹10-15/kg from 8-9% to 13-14%

• Global market is also strong, we sold 19.5 mn kgs vs 14.5 mn kgs previous year

• With higher exports domestic inventory will be lower, this year we can see turnaround in tea prices and might continue for some years

• Will get clear indication in 3-4 weeks time

Full Interview :

http://www.btvi.in/videos/watch/26358/mcleod-russel--what-s-brewing-

Srei Infra - Hemant Kanoria - Chairman & MD

• In CME (Construction, Mining and Equipment) Financing there is no severe new competition

• We have 30-35% market share and close to 100000 customers

• We have been able to maintain the margins (NIMs ~5.26%) as the cost of risk and operation have come down

• Internally we have divided portfolio in 2 segments - New business from 2013 and Previous one

• In the old business, we have a team who is working with clients to recover money

• In the new business, NPL's are extremely low as credit policy has improved, so portfolio is of good quality

• NPA recovery now will be at a slower pace but we surely are working on it

• We finance income generating equipment's, we see demand would be picking up

• Farm equipment has not been an interesting business for us, we have created a new model in conjunction with Sahaj

• Will be able to reduce the risk substantially through Sahaj and will be able to provide complement of equipments to farmers

Full Interview

http://www.btvi.in/videos/watch/26356/srei-infra--business-outlook

Ashok Leyland Update - Amandeep Singh, Head Defence - 16-04-2018

• Won an 100 crore order for 10x10 vehicle to carry Smerch Rockets

• It is the First Indian made 10x10 vehicle will be used by Indian army

• Delivery of some vehicles will be in 2nd half of this year and balance in 1st half of next year

• 26 mobility tenders won in last 2 years, total potential of orders for next 7-8 years can be 5000 crs

• Capex outlay in defence of have gone up from 2%  to 5% and now plan to increase it to 20% in few years time

• Revenues from defence doubled in last 2 years from 400 to 800 crs

• Market size : We expect to play in 20% of 80000 crs worth of army capex in next 4 years time, currently we are leaders but even if we get 33% of that we are looking at 5000 crs in next few years time

Full Interview :

http://www.btvi.in/videos/watch/26362/have-bagged-rs-100-cr-order-from-mod--ashok-leyland

Amber Enterprises - Jasbir Singh - 15-04-2018

• Rationale of expanding in different products (currently 17% of revenues) like functional components of white goods is to utilize our capacities without doing any capex

• Core focus will be Room AC and HVAC components which is 80% of revenues

• Above expansion is just because our customers want more integrated solution - so that's just increasing wallet share from existing customers

• Last year capacity utilizations in AC was 50%, on seasonal basis we work at 60-65%

• Demand for AC is robust, people are buying more of inverter AC

• We have started exporting to 9 countries, though the volumes are less, but inquiries are picking up as china is getting expensive

• Our principal customers have also started exporting

• More utilization naturally leads to better margins (Current margins ~8.5%)

Full Interview

VIP Industries - Dilip Piramal - 12-04-2018

• Aviation figures are right barometers for us, impacts our industry directly

• 1st quarter are our strongest quarter - peak season because of marriages

• It is very easy to manufacture luggage, informal sector is large but after gst and demon we have gained additional 10% mkt share

• Informal sector will also grow as the 1st time entrants start from informal sector

• Sales have increased after gst for all the companies in formal sector which means it has come from informal sector

• Its not a major objective to increase our market share at any cost, we are happy with what we get on our basis of efforts, products, distribution and advertising

• Will now look at export markets

• We have lot of scope in Handbag market 'Caprese' although the base is very small

• It is very difficult to operate from Bangladesh but gradually increasing our activity there

• CSD (Canteen Stores Departement) keeps altering policies and there is some uncertainty - but this affects entire industry not only us

• CSD is an important segment to us, ~20% sales comes from it

Full Interview

Dai Ichi Karkaria - Mrs S.F.Vakil, MD - 12-04-2018

• New Dahej Plant - 30000 tonne capacity in 3 different kind of plants - doubling of current capacity

• For several years we had good demand of products but could not offer due to capacity constraints, so we kept the prices high

• Now once the plant will open up we will bring down the pricing and try to maximize our order book

• We hopefully grow at 30-35% in coming year as partially plant will be started

• Will reach 95% capacity utilizations in 5 years i.e. by March 2023

• Main area of focus is construction chemicals, followed by oil fields

• Our exports will go up as we have special arrangements with Nalco Champions to buy from us apart from JV

• Invested 160 crs - so in current year we are trying to breakeven and in next 2-3 years will start showing income again

Full Interview :

OMMetals Infraprojects - Vikas Kothari, Director - 13-04-2018

• Bagged order worth 157crs from SJVN

• Order book of 700-750 odd crs contains about 14 projects

• 10 projects to be completed in next 1-2 years and remaining 4 projects will take 3-4 years

• FY 19 we are expecting good growth of around 20% in revenues

• Ebitda margins are over 15% and Net margins are around 8-10%

• As on today our core business is engineering and construction, real estate is an opportunistic investment

• Real Estate - Expected revenue of 1000 crs from projects under execution / sale at kota, hyderabad and jaipur - 200 crs already recognized

• Rest 800 crs will come in FY19 and FY20

• Real estate land bank has negligible debt, finance cost have shot up because of working capital loans

• Standalone debt is around 40-50 odd crs - Avg Wcap utilisation - 30-40 crs (9M FY18 Finance Cost = 13crs) 

• Total debt (incl some packaging debt = 80 odd crs) Borrowing cost as per Mgmt = 13%; Nos dont add up; Mgmt will check and update

• Continuously looking to monetize 1 road asset; not able to find the buyer; NHAI looking over to takeover the road

• Once NHAI takes over the road, they'll take the debt portion - debt shall reduce by 150-170 crs at consolidated level

• Total land bank - 26000 sq.m. in bandra; 4-4.5 acre land in jaipur; 10 acres in hyderabad; 10 acres in kota

• Baring the Bandra project, everything is being monetized

Full Interview :

https://www.cnbctv18.com/videos/market/expect-20-revenue-growth-in-fy19-says-om-metals-infra-34201.htm

Vmart - Lalit Agarwal, CMD - 13-04-2018

• People in smaller towns wants to buy good products from good places

• With GST coming in, Organized retail is getting the benefits

• Products that are selling in Tier-1 are also getting sold in Tier-3 and Tier-4 towns

• We operate in clusters so we dont need too many warehouses and distribution facilities

• Currently we have single warehouse in gurgaon (2.5L sq ft), will have to open few regional centres

• Capex - ₹450mn-500mn; Around ₹12mn/store and open about 30-35 stores plus some back-end investments

• 10 players like Vmart can be accommodated as the market is too large

• Mkt share of Vmart today is < 5% in the market they exist

• Promoter entity has not increased any stake, just consolidated stake to one entity

• We are focusing on tier 2 and tier 3 cities as that is where large amount of population lies

• Our customer focus is people who earns ₹20-50K/month

• Since 2012 all the stores we have opened up are without FMCG (Kiraana)

• We are doing good in apparel business which is appreciated by the customers

Full Interview :

Sequent Scientific - Manish Gupta, MD – 12-04-2018

• People confuse animal health to human pharma

• Ours is a similar indutsry to FMCG

• Animal health business is close to 900 crs on annual runrate basis

• 70% revenue comes from europe; India is less than 10%

• We are the only to have US FDA Approved Vet facility in the country

• Aspiration is to be in global top 10 in next 4 years - Revenues of 2000 crs  (Current 800 odd crs)

• Expecting improvement in margins of 200bps yoy - will be closer to 20% in next 4 years time

• Growth will come from
  • Organic growth - as it is branded generic industry; every year we claw some shares of other
  • New product pipeline - 28 products under development
  • Inorganic strategies - for some of the unrepresented market in our portfolio

• US and Australia are important veterinary geographies - Area of focus for inorganic growth

• API - As we grow in US - Growth will be price driven and not volume driven - will translate into margins

• We are focused on food producing animals (60% of global demand is in food producing animals)

• With demerger of human API business, we now are pure play animal health company

• Post demerger - effective debt is ~300 crs; have cash of 50 crs and investments in strides shares; net basis we are zero debt co.

Full Interview :

• Last year has been challenging in terms of margins - Raw material prices have gone up - Revenue side has been positive

• Demon, GST, Anti duming duty has impacted Chinese imports in India. From nearly 30% of truck radial mkt they are down to 1/3rd of that

• RM costs still have some pressure on margins due to oil prices, carbon black availability - Causing challenge to bottomline

• Going forward seeing upwards momentum on both PV and CV side

• See double digit growth coming in Q1 and Q2

• Today demand is more than supply in terms of what we can cater to PV and CV segment

• Times on revenue side are good

• 60-65% sales comes from CV segment

• We have 28-29% share in truck bus radials

• Expect CV segment volume growth in high teens

• Capex - doubling capacity in chennai 6000 to 12000 tyres/day (Currently at 9000 tyres/day)

• Hungary plant - invested 500 mn euros - (Currently at 8000 tyres/day in PV); By Sept trying to reach 16000 tyres/day

• TBR tyres to be launched this May-June in Europe

• We have done very well in europe , gained mkt share there

• Signed with AP Govt - cannot say the amount of money to be invested - still at project stage

• Looking at building capacity of 16000 tyres/day in AP - but investments will start in FY20

• Free cash flows will come in from FY19-20

• Rubber prices - not been coming off - margins would be under pressure in Q4

• RM basket still remains challenge for us and the industry

Full Interview:

• Alumina tender prices moved from 390 to 473 i.e. 21%

• Around 3M tonne (1.5 lac tonne p.m.) alumina will not be avl as partial shutdown of brazilian refinery

• Every month 1.5 lac tonne shortage will be there is alumina

• Mkt price of alumina will certainly remain at curr prices of 350-360$ levels; expect it to move to 450-490$

• Last qtr 13 shipments were made; will likely do 1.3 million tonne exports this year; 9-12 shipments made in this qtr

• Refineries working at 100% capacity

• Caustic soda is main input cost - prices gone up by 5% in last 2-3 months - it will sustain at this price - 40-40k/tonne - may be peaked at this  level

• If this kind of prices sustains, will certainly be ebit positive