Analyse India

Manpasand Beverages - Abhishek Singh, Director

• Currently our distribution outlets is limited to 4,00,000, after getting access to 4 million outlets (tie-up with Parle) in the country, jump in revenue will be phenomenal
• Vadodra facory has started manufacturing, Varanasi will start in this month, Sricity and Eastern unit will start in next 4 months
• We are aiming to capture 15-16% market share from 10%
• Recently we have launched Jeera flavoured drink in modern trade outlet which will scaling up shortly
• 8-10% revenues comes from modern trade outlets and 20% comes from railways but as we are focusing on distribution with parle, retail share will increase

Full Interview:

http://btvi.in/videos/watch/26651/aiming-20--market-share-in-fy19--manpasand-beverages

 

Bombay Dyeing - Aloke Banerjee, CEO

•  With rising prices of cotton, there is escalation in prices of yarn and grey fabric - facing pressure on margins - absorbing rising costs
• Coming out with a campaign on digital printed bedsheets, we have 100 new designs going into the market
• We are offering - Customize your own bedsheets - one of its kind - at a cost of ₹1999/-
• On MRP baiss we are doing 600 crores of turnover from retail, this year we are looking for 30-35% jump in turnover
• We have presence at 3500-4000 MBO's - Plan to open 100 new franchise stores this year in addition to 200 stores at present
• We are targeting 1000 crore revenue on MRP basis by FY2020 - Expecting 750-800 crores in this FY
• We do around 15% of sales through digital these days

 

Full Interview :

http://btvi.in/videos/watch/26648/eyeing-rs-1-000-cr-revenue-by-2020--bombay-dyeing%09

GNA Axles, Kulween Sheera, ED

• Demand outlook is good for Exports as well as domestic, Off-road as well as commercial vehicles

• Off-highway (Tractors) domestic market can see growth at 7-8% in coming year

• Order flows - 70-75crs per month overall (Exports + Domestic)

• Our sales consists of 50% off highway and 50% CV's

• Margins will be impacted in short term due to increase in steel prices

• Once prices are stabilized we can expect 15-16% margins

• Market share in tractors is 50-55%, we are increasing some capacity and once machines are in place we can cater to more clients

• 50% of our sales is from exports, expect growth of 10-15% in exports

• Expect 15-20% overall growth for FY 19, mainly lead by volume growth

• Right now total capacity is 4 million components and utilization is 80-85%

• In 18-19 there will be addition of 500,000 components in existing setup and In 19-20 more 500,000 components in new setup

Full Interview :

https://www.youtube.com/watch?v=mGrTwE40Fak

 

GNFC – Rajiv Gupta, MD

• TDI demand is very steady, we have 5000 tonnes of export backlog of TDI

• TDI prices are hovering around 4000-4200 $ except a few erratic price offerings by some companies

• We have improved our capacity utilizations from 73% to 93% (FY18) and this year our target is 110%

• Squared off debt of 880 crs this fiscal

• Brought down working capital from 1700 crs 3 years back to level of 225 crs, our target is to make it zero

• Some of the plants have done very well like Aniline, Formic acid, Technical grade urea and Ehyl Acetate

• Our company should not be evaluated only in terms of TDI business, in last 3 years we have registered a growth of 90% in non TDI business

• Non TDI segment is also doing well

• Board has authorized capex in Acetic acid and Formic acid

• We have made our self completely insulated as far as any water crisis are concerned

Full interview:

https://www.youtube.com/watch?v=4u656NIIeY0

 

Prabhat Dairy, Vivek Nirmal, Joint MD

• There is ample of water availability, milk production not going down,  dont see any increase in milk prices

• Prices are in range of 24-25₹/ litre for cow milk, which is stable from last quarter

• In comparison to last year milk prices are lower i.e. 24-25₹ vs 27-28₹

• As festivals come up demand of dairy products increases

• We have soft launched our ice cream products

• Seen sales growth in Dairy based beverages - Lassi, Chaas , Dahi as mercury rises

• Launched 200 ml products - Lassi - 25₹, Buttermilk - 12₹

• Consumers prefer more dairy products from the same brand that they trust

• We are at 70% capacity utilizations overall, new products like curd or cheese facility has lower utilizations

• No new capex in factory or manufacturing but will continue small capex in milk procurement by adding 50-100 Bulk milk coolers

• Gross margins are increasing but Ebitda margins will remain in range for 2 years as we continue to invest in branding and distribution

 

Full Interview:

https://www.youtube.com/watch?v=Q1f95GY2BZY

 

Shalby Hospital, Vikram Shah, CMD

• We are coming up with 4 units (2 in Mumbai, 1 in Nashik, 1 in Baroda) in addition to the 11 units

• We are looking for acquisition in northern and eastern India

• Jaipur, Surat, Baroda units are 3-6 months old, which are getting EBITDA neutral

• Mohali which is getting refurbished will be started in a months time

• Market size : Over 30 years cardiology has grown 30-35% p.a. to reach to this level. Now cardiac growth in India is at 2% as it has penetrated to tier 2, tier 3 cities. Similarly, Cancer, Joint replacement, Spine surgery are in growth phase and that phase has started only 10-15 years back

• In 1994 India did 300 replacement surgeries in whole year and we did 15, Last year India did 150,000 knee joints and 120,000 hip joints, USA is doing 600,000 knees and 600,000 hips in a year for a 300 million population

• India has 30% paying population, that 30% itself is equal to size of USA, Plus South Asians suffer from knee arthritis 15 times more than caucasian population, that much is the overall problem in Indian subcontinent

• Govt of Gujarat have given 40,000 subsidy per patient which has made it affordable even to lower middle class

• So overall volumes of orthopedic surgery will substantially rise in future

Full Interview:

https://www.youtube.com/watch?v=0BdN5g9_J2w

 

UBL, Shekhar Ramamurthy,  MD

• Industry volumes should grow in single digits between 5-8% in next 12 months

• Volumes growth are not uniform across the states, West Bengal and Maharashtra have problems, while North, Karnataka, Telangana is seeing good growth

• Growth engine will continue to come from Kingfisher and Kingfisher strong

• Strong double digit growth seen in premium brands such as Kingfisher Ultra, Heineken, Ultra Max, Kingfisher Storm etc

• By end of this year planning to launch our kraft variety; Also have plans to enter non alcoholic beverages

• All these new additions will not have much impact on topline in near future, they are long term growth drivers

Full Interview :

https://www.youtube.com/watch?v=EZUS-Sw5BKU

 

ROHL – Amit Jaiswal – CFO

• Our occupancy will cross 80%, already at 78% occupancy across our hotels

• Pune, Mumbai, Navi Mumbai hotels does 90%+ occupancy

• Average revenue did not see much growth last year ~ Rs 3800. FY19 will see 8-10% growth

• Average Revenue grows when your competition is also doing well

• Margins will improve by atleast 20%+ , By year end we should be seeing margin improvement by 25-30%

• If trend continues, in FY20 consolidated EBITDA will cross 50 crs

• For Powai land - Waiting for official gazette approval by mumbai government for change of land use from hotel project to commercial which will give us a better value, we may slog it off by outright sale or can do joint development. Size of plot is little more than an acre (5500 sq. mt)

• Tanzania land - will like to close it out this financial year -  ~25 crores can be the value

• Current debt on books is 36 crs standalone and 76 crs consolidated

• We are also looking into some leased assets to increase our topline and profitability

Full Interview:

https://twitter.com/CNBCTV18News/status/986480329312501760?s=08

 

India Cements - Rakesh Singh, President

• In last 5 years south had no demand growth or negative demand growth

• We had a growth of 1% in Q2FY18, 6% in Q3FY18 and 15% in Q4FY18 leading to 4% growth for the year

• Last quarter growth from AP and Telangana was as high as 37%, for a year as a whole it was 17%

• Lack of demand from Tamil Nadu due to lack of water, sand mining issues. Decent growth of 4% in last quarter

• If Tamil Nadu comes back on track, we look forward to 10% growth for current year

• Big trigger was AP and Telangana government doing irrigation projects, one has to see Kaleshwaram project of Telangana, amount of concrete going in is unbelievable

• Low cost housing, irrigation and road projects are slowly taking shape in Maharashtra, Karnataka

• Believe lack of demand from Tamil nadu and kerela is behind us, can see better growth on low base in coming quarters

• In Q4 industry operated at 68% capacity utilizations, for year as a whole we are nearly close to 60%

• Plants in north of south will do better than plants in south of south, we have 4 plants in AP and Telangana

• For India cements capacity utilizations in Q4 was at 70%

• Wont rule out industry capacity utlizations at 70% and India cements at 75% if there is 10-12% growth plus Maharashtra is growing at 11%

• In commodity pricing is the most important thing but pricing power is not currently with manufacturers, have seen some marginal improvement though

• Cost of Pet coke and Coal are substantially up, so the prices of cement has to be up for companies to make decent profits

• As demand will grow we see to make more than what we will loose on cost front

Full Interview :

https://www.youtube.com/watch?v=-kRKBCvP7MY

 

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