Management Interviews – Mcleod Russel, Srei Infra, Ashok Leyland

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

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