Management Interviews – Saksoft, Sanghi Inds, Escorts, BEML, Welspun Corp, Lemon Tree Hotels, Omax Auto, Bluestar

Saksoft

  • Focused on digital services in following spaces
    1. Fintech
    2. Healthcare
    3. Logistics
    4. Ecommerce
    5. Telecom
    6. B2B
  • Our revenue drivers are
    1. Application services
    2. Digital testing
    3. Analytical services
  • depreciation is good as 90% revenus comes from Europe and US
  • 5 Customers with more than 1 million $ revenue
  • 90% revenues comes from repeat customers
  • Margins can improve 50-100 bps from current 13% odd
  • We keep looking for midsize companies between valuation of 5mn to 10mn in size
  • Expect growth to be better than last year
  • Small debt of 25 crs
  • Promoter % holding has reduced only because of reclassification from promoter to non promoter

Full Interview:

https://twitter.com/CNBCTV18News/status/1006101894152912896

 

Sanghi Industries

  • Not cut off any prices from May in Mumbai
  • There will be impact on price as well as volumes as monsoons will arrive
  • Mumbai forms around 10% of our market
  • A fortnight’s shutdown was taken in month of Feb which was a one off event, growth should return to normalcy from this quarter
  • FY 19 we expect to end at 3-3.2 mn tonnes of volumes sales
  • Typically Q1 and Q2 will see 40% of the years volume and Q3 and Q4 see 60% of the voumes
  • Diesel and Energy prices have gone up and will have impact on whole industry
  • In Q4 no cement company posted 20%+ margins and Ebitda have come down to below 1000 from 1200-1400 range
  • Fly ash availibility shall improve next quarter or so
  • Capex plan is on track as planned, entire project will get commissioned by end of FY 20

Full Interview :

https://www.bloombergquint.com/videos?id=5b1e0126bf48855f66543239

 

Escorts

  • Expect insutry to grow at double digit somewhere around 9-11% is possible on a already strong base
  • Escorts have been supplier to Indian railways for suspension and braking systems, now we are looking to expanding our portfolio going into electrical categories
  • There is an inflation pressure since last 15 months and trend will continue for this year too, so far able to pass on all costs with a lag of a quarter
  • We are expecting 2.5 times growth happening on topline side
    1. Railways – 4 times growth
    2. Construction – 3 times growth
    3. Tractor – 2.5 times growth

Full Interview :

https://twitter.com/ETNOWlive/status/1006099015065165825

 

BEML

  • Order book is around 6700 crs and expecting good orders this year
  • Can see 30% revenue growth this year
  • Mining and construction order book target is 1800 crs
  • Rail and Metro order book target is 1800 – 1900 crs
  • Defence we see 1000 crs order this year
  • Improved margins will come from spare sales in defence, high end equipments in mining and construction, memo orders in railways
  • Margins will be better than last year
  • Capex this year will be double of last year (70 crs) into aerospace, rail and metro, ARV order in defence
  • Stake sale is delayed because of due diligence process

Full Interview :

https://www.youtube.com/watch?v=tbDI0lVfXos

 

Welspun Corp

  • 2 orders one from Latin American market and one from American market which will be serviced in this FY itself
  • Current order book is at 1.64 Mill Tonnes, consolidated order value of 11400 cr rs. These 2 orders out together will add 700 crs odd
  • Both orders will be fairly remunerative as compared to previous orders
  • Margins in American order will be higher than normal margins
  • Very strong demand and prices for oil so American market looks good, till now we have not faced any hindrance
  • We are already booked for 9 months of this year

Full Interview :

https://twitter.com/ETNOWlive/status/1006407074467778560

 

Lemon Tree Hotels

  • Demand over last 5 years have grown 13% a year and supply is only going to grow at 6-7%
  • No one is building hotels anymore due to poor economics at present
  • Huge shift seen in young middle class population with rising disposable income towards branded mid market hotels
  • There would roughly be a 500-1000 bps of difference between Revenue nos. of a hotel chain and a standalone hotel
  • Over 200k hotel rooms in India, over 62% is branded
  • Over time standalone hotels will be under pressure to merge with chains
  • Next 5-7 years – ther will be 5-6 dominant chains in India international as well as domestic
  • Bombay region has highest barrier to entry because cost of land is very high and development approval process is a nightmare
  • Mumbai Lemon tree premier is 671 room hotel, 8L sq ft built up area, will be ready in next 3.5 years. Avg rates will be around 8000 rs. with 80% occupancy
  • Group occupancy rate is at 76-77%
  • Our ability is to re price in better in winters than in summers
  • Current debt is 1000 crs, don’t see debt significantly going up this year
  • In summary we have 6600 rooms, 66 hotels.
  • 300 room hotel in Bombay, 200 room in Pune, 90 room in Dehradun, 140 room in Kolkata and 140 room in Udaipur. All owned assets
  • Also open another 700 managed rooms this year.
  • Bombay will require significant investment of 800 crs, 200 crs already funded, rest will be through internal accruals and little debt. Peak debt will be 1300 crs. Will be comfortably able to service it
  • ARR’s are higher for this holiday season than last year

Full Interview :

https://www.youtube.com/watch?v=0bDYn9i-6nc

 

Omax Auto

  • Indian railways have taken decision to replace conventional ICF designed coaches with German LHP designed coach
  • There are roughly 45000 coaches in circulation today and replacement is planned in next 7-8 years i.e. 6000 coaches per year plus annual demand of 3500 new coaches evey year. So demand will be around 10000 coaches p.a.
  • We make coach furnishing items to support production units
  • Current capacity utilization is at 72% and processing 4800 tonnes stainless steel every year. With capacity expansion in next 2 years the capacity will double
  • Formal production will start in last quarter of FY 19 (Around 15-20% of overall capacity to come online)
  • Last year turnover from Indian railways was 150 crs , tgt for 2020 is to take it to 500 crs, reducing the dependence on 2W business
  • 3 years down the line railways shall form 35-40% of overall sales
  • Ebitda in last year was 4.5%, expecting it to rise to 7-8%
  • Our margins from railway business are better than automotives
  • Looking to dispose land in Gujarat and certain part of Northern India

Full Interview :

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

 

Bluestar

  • Penetration levels in this country is very low say around 5%
  • Impulse purchase due to summer have not happened this year but market outlook demand has not gone
  • As far as GDP grows by 7-7.5%, market for room air conditioners will grow by 10%
  • Jan to March was a good quarter, April to June is not going to be good but at the year end we see 10% growth.
  • Inventory levels is the one pressure one can see, industry will have 500,000 units as inventory i.e. 2-3 months
  • Good monsoon and festival season is the hope
  • North and West did good in May, South and East sales were down due to rains.
  • Air conditioner is the last durable for many buyers i.e. after 4wheelers
  • Very likely to increase prices in July or Aug

Full Interview :

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

 

 

 

 

Management Interviews – UFO Moviez, Gujarat Gas, Glenmark Pharma, Thomas Cook, Coal India, Godfrey Phillips

UFO Moviez – Kapil Agarwal, Joint MD

  • Ad revenue growth should be 20% or above
  • Minutes Ad / Show should grow at 20-25%
  • of screens are constant 50 +/- is what we expect
  • Main screens growth is coming from multiplexes where we do not have advertising rights as they sell their own advertising
  • Caravan has grown from EBIT of 2crs to 8crs and expecting healthy growth further

Full Interview:

https://twitter.com/CNBCTV18News/status/1001716589711036417

 

Gujarat Gas – Nitin Patel, CEO

  • We can maintain 6.8 mmscmd volume growth
  • We have defined 2 segments PNG/CNG (Gas provided by Govt. of Gujarat) and LNG (Buy and Sell to the industries), Growth will come from both segments
  • Industrial prices – 80-90% contracts are dollar based; dollar shocks are passed on
  • CNG/ PNG is non dollar based pricing – we monitor and pass on the prices as per strategy
  • Bids for 86 geographies and 147 districts opening shortly – Out of these we have bid for 48 in 1st screen and 2nd screen is going on, eventually we will see at 20 odd cities for bidding

Full Interview:

https://twitter.com/CNBCTV18News/status/1001713785256767488

 

Glenmark Pharma – Glenn Saldhana, CMD

  • US business is challenging but got couple of approvals this quarter
  • From Q1 one should see US business doing much better than last year
  • New approvals will over shadow the price decline that we see in US
  • Everyone is facing margins pressure in US and hard to predict what will it look like
  • On a full year basis margins will look reasonably good, not providing any specific number
  • Several molecules under development which could get out licensed in current year
  • Will generate free cash in core business which will bring down debt
  • Strong growth from India in domestic and consumer care business
  • R&D spends @ 12% will remain flat on full year basis

Full Interview :

https://twitter.com/CNBCTV18News/status/1001711057059176448

 

Thomas Cook – Madhavan Menon, CMD

  • After removing one offs – profitability have grown by 9% in Q4
  • Sterling holdiays resort losses halved; EBITDA nos. have shown signs of turnaround
  • SOTC and Thomas cook forward booking for outbound travel is 34% above last year, after depreciating Re it is still 28-30% growth
  • Have used analytics to follow on leads and regional tours have taken off significantly this year
  • Foreign exchange business is the cash cow in thomas cook portfolio, no intention of demerging
  • Not want to get into NBFC at this time

Full Interview :

https://www.youtube.com/watch?v=7USZtOngDOg

 

Coal India – Samiran Dutta, Chief Manager – Finance

  • Q4 was best in last few years in terms of production and offtake
  • Production was 183 mn tonne and offtake was 158 mn tonne
  • In Jan 2018 we have revised our prices
  • Realizations in Q4 were Rs.1573 / tonne vs 1495 / tonne
  • FY’19 production growth at 16% and offtake at 13%
  • Targetting production of 630 mn tonne in FY 19
  • Incentive is around 500 crores which is included in sales number
  • E – Auction prices is around ~2000 / tonne
  • Started year with 55 mn tonne of inventory
  • Receivables have come down as marketing team is continously monitoring and hope to continue in future also

Full Interview:

https://twitter.com/CNBCTV18News/status/1001664994038104064

 

Godfrey Phillips – KK Modi, President

  • Industry volumes have come down by 4%
  • Illicit cigarettes are around 25% od total market
  • FY 19 Industry growth will be flattish and our volumes will go up slightly (in single digits)
  • Slight increase in prices due to gst but not significant
  • FY 19 if taxes remains stable, prices will remain stable, as industry will not raise prices
  • Current mkt share is slight higher than 12%
  • We are currently selling only in 40% of India , looking for geographical expansion esp. Soth India

Full Interview :

https://www.youtube.com/watch?v=hpWrpUs0zhk

 

 

Management Interviews – TTK Prestige, Prabhat Dairy, Atul Auto, Tata Chemicals, Ashok Leyland, Manappuram Finance

TTK Prestige – TT Jagannathan

  • Dont give revenue projections but domestic rev growth of 14.5% can be repeated in FY19
  • There is good growth across the board
  • We will have to pass on cost increases to market for increase in aluminium prices
  • Looking for 150 crores capex this year for prestige brand
  • Revenues from cleaning solution business – little below our projection of 30 crs – Projecting 60 crs in this FY
  • Major growth is coming from online and rural
  • Export outlook is good this year with 2 new clients, expect more than 100% growth this year

Full Interview:

https://twitter.com/CNBCTV18News/status/998496641983250432?s=08

 

Prabhat Dairy, Vivek Nirmal, Joint MD

  • B2C contributes 30% of our revenue, intend it to take to 50% in next 2 years
  • 70% largely comes from premium dairy ingredients
  • Gross margins are higher from B2C vs B2B. However due to higher spend on distribution, Ebitda margins from B2B and B2C are at pretty same levels
  • We expect a double digit margins post 2020 after distribution and sales efficiency kicks in
  • Milk procurement prices are stable at 23₹/ltr
  • Largely we are Maharashtra focused brand, cover more than 40,000 outlets in Maharashtra
  • Ice cream is still a small product, its not more than 10 crores – still in test launch phase – will move towards 100 crore category in next few years
  • Promoters have increased stake in company last year, will be looking to increase at the right price

Full Interview:

https://twitter.com/CNBCTV18News/status/998493459701948416?s=08

 

Atul Auto – Jitendra Adhia

  • Will be doing double digit growth in next fiscal as well
  • We find demand is reviving from rural and semi urban side
  • In medium term i.e. 3–5 years our export contribution shall be sizeable at 20-25% vs 7% as of now
  • We expect capacity utilization above 80% in next fiscal
  • We were going to take price hike but waiting for right time
  • Our network is around 320 touch points and will keep on increasing 20-25% yoy

Full Interview :

https://twitter.com/CNBCTV18News/status/998463672300158976?s=08

 

Tata Chemicals – R Mukandan 

  • We have completely exited fertilizer which led to some erosion of numbers
  • Focus is shifted from consumer product business to modern trade
  • Sharpest change have come from pulses from having a long supply chain to having a short supply chain, improved margins but impacted revenue numbers
  • Margins depends on market condition which has been favorable to us, will stick by 18% margins
  • Europe operations are doing well, main product sales were not impacted but what they earned additionally by selling electricity to customers were impacted
  • We have soda ash and salt business there. Salt is rock steady. Additional power sales were impacted due to disturbances in turbine which is fixed now
  • PAT nos. include one time sale of fertilizer business which have to be factored in
  • We have de-risked the Rallis business even if monsoon is impacted slightly
  • Rains in Colombo is good and it should be hitting Kerala any time
  • Targeted 5000 crores mark in revenue coming 3-4 years
  • We are in basic pulses, launched organic pulses, launched besan and now khichdi, chilla mixes and a range of products still coming out
  • Also building the spices portfolio

Full Interview:

https://twitter.com/CNBCTV18News/status/998427918219919361?s=08

 

Ashok Leyland – Gopal Mahadevan, CFO

  • Net cash is around 3000 crores
  • Have seen market shifting from smaller tonnage to heavier tonnages
  • In full year seen a rise of 12-14% in industry volumes
  • We do not sell on credit
  • Industry is consistently discounting and we have been consistently raising prices
  • As RM price is going up we have no choice but to raise prices
  • In last 7 years we have moved from 300 touch points to roughly around 3000 touch points today
  • We were able to grab huge market growth in North and also in Central India in FY 17-18
  • Rising crude prices – Freight cost rise will not be in consideration for infrastructure projects to happen

Full Interview :

https://youtu.be/O09a_Polgfc

 

Manappuram Finance – Mr Nandakumar

  • Last 2 quarters we are doing well, collections have been improving in micro finance and other businesses
  • Targeting 10-15% growth in gold loan, good recovery in micro finance, CV business has stabilized, Home finance there was some stress
  • Asset quality will remain good in gold loan buinsess
  • Online gold loan – volumes are high and risks are low
  • Average loan to value in gold loan is below 70%
  • Efforts are in full steam for digitization
  • Security cost has gone up by 130-140 crores, looking to bring down this cost by electronic technology and new storage models
  • 25% is non gold book – it will move upto 30% in current year

Full Interview:

https://youtu.be/mR2u3jCs2EU

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

Management Interviews – Arvind, JSPL, MAS Financial, Welspun Enterprises

Arvind – Kulin Lalbhai, ED

  • We are going to invest 500 crores every year in textile business for
  1. Will put up Garment capacities, Today we covert 10% of our fabrics to garments, will take it to 30%
  2. Investing in technical textiles
  3. Investing in new line such as ‘Performance’ and ‘Smart’
  4. Investing in branding business of Arvind
  • With ₹ depreciation happening , exports will see benefit in 2 nd half of this fiscal
  • We are present in 250 towns and have 20 different brand and retail formats, usually end up adding 150 new stores every year to our network
  • One would see demerger in quarter 2 and actual listing process  sometime in October

Full Interview :

https://www.youtube.com/watch?v=uxnczuh1Hu4

 

JSPL – NA Ansari, CEO

  • Oman business – Ebitda in this quarter is close to 71 mn $, 120% more YoY
  • Increased production in Oman, Rolling mill is producing more than 100,000 per month, costs have come down substantially
  • Improved product mix, selling more value added rounds and less of normal square billets
  • Not only working in Oman and UAE but also export to Saudi and Europe
  • Angul ramp up doing well – targeting more than 200,000 tonnes of steel to come
  • Power business is struggling as coal is not available at pricing which are manageable
  • PLF for plants is just at 42-43%.
  • Situation can only improve if coal is made available at viable prices and PPA’s go up
  • Expecting production nos. of 9 mn plus in next year between Oman (2mn) and India (7mn)
  • Capex requirement in next year should be around 400-500 crores max
  • Current net debt is at 42000 crores, expecting to come down by 4000 crores in this FY purely by Ebitda generation
  • Spread between RM basket and finished products have gone up by 42-43% in last FY, resulting in ebitda per tonne in this quarter at 12800 rs vs 9800 rs
  • Not expecting 12800 rs margin to grow substantially higher, but we can maintain such margins next year

Full Interview:

https://www.youtube.com/watch?v=g8zrKPE7xZQ

 

MAS Financial – Kamlesh Gandhi, MD

  • We target to have 5200-5300 crores of AUM by FY19 including housing porfolio
  • 80-85% will come from MSME and SME and Rest from 2 wheeler, commercial and housing.
  • As long as we maintain the AUM quality we expect to grow in range of 25-30%
  • GNPA going forward will stay in range of 1-1.3% and NNPA will hover around 1%
  • NIM will be 7.7-7.% vs 8% last year as there is some pressure in interest rates
  • Grew housing business at 15-16% last year , looking forward to grow more 1000 crores from current levels in 3 years
  • Rural housing NPA is around 0.27% vs 0.36% last year

Full Interview :

https://www.youtube.com/watch?v=biU8J8mnzLY

 

Welspun Enterprises – Sandeep Garg , MD

  • Results are good because Delhi Meerut project which was scheduled for 30 months is getting completed in 16 months which led to faster turnover recognition
  • Order book stands at 5500 crores including L1 of 2000 crores; current backlog at 3000 odd crores
  • We expect to book 7000 crores in this year, last year we booked 4000 crores
  • Order backlog at the end of the year to be around 8000-8500 crores
  • Revenue growth should double up every year for next 2 years, profit growth should also continue
  • Ebitda margins are at 15%, expect similar numbers in next year
  • In infra projects, profit margins are at 11-12%, expect to continue in same range going forward
  • Debt is majority at SPV level in Delhi Meerut project, parent company is debt free
  • As the order book will grow, 50% of order will be through debt in various SPV’s which we operate

Full Interview :

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

Management Interviews – Nalco, KRBL, Auto Axles, Varun Beverages, Wonderla Holidays, Kalyani Steels

Nalco – Management Interview – 09-05-2018

  • There is a shortage of 2-2.5 lac tonne of alumina in a month
  • China has started exporting alumina but there is a concern on chemical mix and environmental problems in china
  • Alumina supply issues shall continue till the Brazilian elections are over i.e. in December
  • Around 4-5% is the normal demand growth in alumina coupled with shortage in supply, the alumina market will remain tight
  • Last shipment was made at 582$ vs 670$ vs 718$ which shows that prices have come down from the high levels after relief in Rusal sanctions
  • Aluminium prices will remain in range of 2150-2250$/tonne
  • Caustic soda prices have moved from 41k to 45k (7-8% increase) which shall moderate with moderating demand of alumina
  • Alumina prices above 450 results in good ebitda margins for the company, so results shall remain good till in Q1 and Q2 of FY 2019

Full Interview:

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

KRBL – Anil Mittal, MD on US Sanctions 

  • Sanctions always have some relaxations
  • On past experience we have seen that essential commodities are always out of the sanctions like food items and medicals
  • Around 4-5% of total turnover we export to Iran
  • Payment problems and bank position are concerned they will become more tighter
  • We dont give any credit to Iran, We do 100% against 10% advance or LC
  • We are progressing in the business very well, in basmati 2nd competitor is nowhere close to us

Full interview:

https://www.youtube.com/watch?v=TG-fniW34nk

Auto axles – Dr N. Muthukumar – President

  • Growth in CV segment for the company is double than market growth rate
  • New product development, penetration has helped us achieving the growth rate
  • RM cost is increasing which will only lead customers to pay more
  • Higher tonnage vehicle (more than 35 tonnes) have really grown well given the new projects in infra space

Full Interview:

https://www.youtube.com/watch?v=-mJp1evaP3M

 

Varun Beverages  – Ravi Kant Jaipuria

  • Q1 – Volumes have grown at 20% and Revenues have grown at 25%
  • Organic growth has been around 10% and India growth is around 12%
  • Rural is 30% and Semi Urban and Urban is about 70% of volumes, but rural if growing at much faster rate
  • We have 40% market share in our territory and for weaker / new territory we are aiming to get them at 40%
  • Have launched 6-7 variants in slice which are fizzy drinks. Trying out just in Delhi and UP
  • April to June is our main quarter which is about 45% of our turnover which is looking good
  • New country Zimbabwe is doing well and Nepal we have started 1 week back
  • New products and distribution strategy will help us gain volumes
  • Sales mix (Volumes) is 75% from carbonated, 6% form juice and 19% from packaged water

Full interview:

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

 

Wonderla Holidays – Arun K. Chittilappilly, MD

  • Increase in footfalls seen in Kochi and Hyderabad, Bangalore is not growing much
  • Prices have become attractive (down by 10%) due to GST cuts which came in from February
  • Average ticket prices for this quarter have remained flat or low single digit growth
  • Kochi have revived its growth and Hyderabad being 2 year old park is showing double digit growth
  • Work for Park in Chennai is halted as there is confusion regarding LBT tax on amusement park which is at 10%, Govt is re-looking at the issue
  • No plans to monetize land at existing parks as Co. will need the land in future. It will not be operationally beneficial for the co,

Full Interview:

https://www.youtube.com/watch?v=yoGK8zAq4Pw

Kalyani Steels – RK Goyal, MD

  • Price of steel have gone up but cost of coking coal, iron ore, ferro alloys have also significantly gone up
  • As far as we are concerned we are manufacturing engineering steels, we cannot ask our customers for price increase now and then, already got price increase from 1st April, now it will be after 3-6 months
  • We have to absorb if there is any increase in RM cost
  • Price increase from 1st April was not fully met but a good portion of cost was taken care of, will be able to protect the margins that was there last year
  • We are fully booked, whatever quantity is available with us, we are able to sell it comfortably
  • Volumes will be on a similar basis as of last year, we have operated at 100% capacity in last year

Full Interview:

https://www.youtube.com/watch?v=vEoTT6Fmhig

 

Management Interviews – Manpasand beverages, Bombay Dyeing

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

Management Interviews – GNA Axles, GNFC

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

 

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:

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

 

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:

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