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

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