Management Interviews – Prabhat Dairy, Shalby Hospital, UBL

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:


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:


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 :


Management Interviews – ROHL and India Cements

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:


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 :


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 :–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–business-outlook


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

  • Won an 100 crore order for 10×10 vehicle to carry Smerch Rockets
  • It is the First Indian made 10×10 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 :–ashok-leyland

Is Sun Pharma Checking In Unichem Laboratories ?


Unichem Labs Share Holding Pattern

Share holder Name Dec-17 Mar-18
  No of shares % holding No of shares % holding
Alrox Investment & Finance 1597763 1.76% 997437 1.42%
Airborne investment & Finance 1149452 1.26% 717568 1.02%
Family Investment Pvt Ltd 1438522 1.58% 898026 1.28%


Sun Pharma Share Holding Pattern

Share holder Name Mar-18
  No of shares % holding
Viditi Investment Pvt Ltd 200846362 8.37%
Family Investment Pvt Ltd 182437880 7.60%
Virtuous Finance Pvt Ltd 96851821 4.04%
Virtuous Share Investment Pvt Ltd 83751259 3.49%

Whats common between this entities : –

  1. The Companies Address of Alrox, Airborne & Family investment is same as Taro Pharmaceuticals India Pvt Ltd.
  2. The Director of Alrox Investment, Airborne Investment is the same of Virtuous Finance, Virtuous Share — Mr Dineshkumar Ramniklal Desai
  3. The Director of Family Investment Pvt Ltd & Viditi Investment is the same Mr. Milind Vijay Goradia

Amber Enterprises – Jasbir Singh

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

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

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

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 :



Vmart – Lalit Agarwal, CMD

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

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 :