Management Interviews – NIIT Technologies, Mastek Ltd., Ashok Leyland, M&M, Bajaj Auto, Sterlite Technologies

NIIT Technologies

  • Annual Salary hikes comes in Q1 leading to depressed margins
  • Order intake for this quarter is $151 mn vs $110 mn YoY with US as lion’s share
  • US is now 50% of revenues vs 48%
  • Within BFSI, amount of spends coming from Capital markets subsegment to meet regulatory impediments are large

Link

https://twitter.com/BloombergQuint/status/1019554623768522752

 

Mastek Ltd

  • As a result of our investments in last 18-24 months, we are seeing a good momentum in topline
  • Financial performance is a lag indicator, our pipeline have grown 25% QoQ, order book remains robust, we are signing multi year deals
  • More IT services will be needed to establish departments set out due to Brexit
  • Sequentially US grew 4.2% and 10% YoY. Investments in digital commerce space (Retail to Ecommerce) is where we are helping our customers
  • We have been in UK for 22 years and US for a year and a half
  • Margins trend will continue to have upward bias as we keep on investing and growin the business

Link

https://twitter.com/BloombergQuint/status/1019555890603556865

 

Ashok Leyland

  • Taken price hike of 1.5-2% in April which helped us to neutralize increase in RM prices
  • In chase of volumes we are not going to do heavy discounting. We don’t push credit into pipe and try to take offtake higher
  • Net cash on books is 1200 crs
  • Its 12-13th sequential quarter of double digit ebitda margins
  • Hopefully in 2nd half of this year we can see softening of steel prices
  • Market share for current quarter is 30.2% for MHCV segment (fallen by 4.5%)
  • Gained market share in LCV segment from 15 to 16% -> 34% growth in volumes
  • We are clearly walking away from negative margins sales and let some of business go. For us it not a market share game, our plan is to grow profitably
  • 8-10% growth at the end of the year is very much possible
  • Extra load in existing vehicles brings safety concerns as it will be overloaded; can be brought prospectively in new vehicles
  • Last quarter we saw heavy discounting by other players to play volume game

Link

https://twitter.com/CNBCTV18News/status/1019483592085270530

 

M&M

  • Govt notifications on extra load cannot be applied retrospectively as we have designed vehicles as per earlier rules
  • Will have to design new truck for new axle load
  • It will take minimum of a year to design and make trucks to be able to leverage full axle capacity that govt has now approved

Link

https://twitter.com/CNBCTV18News/status/1019483282470158336

 

Bajaj Auto

  • Exports grown by 31% in totality
  • Domestic motorcycle grown by 40%
  • CV business grown by 80%
  • All in all grown by 36% in number terms
  • Had a record sales in international three wheelers, on track to achieve 2 million on export side
  • CV business – runrate of 100,000 coming per quarter, annual target of 375,000
  • Domestic motorcycle – Industry growth at 19%, we have grown at 34%
  • Margins at 18.4% vs 20% tradionally
  • CV and Exports have seen same margins
  • Domestic motorcycle is growing more in terms of topline so margins have come off on overall business
  • Will go in more aggressive in terms of pricing and market share for M1 segment (entry level) which forms 15% of turnover
  • Sports segment, 3 wheeler, Spare parts will continue with the same margins

Link

https://twitter.com/CNBCTV18News/status/1020242425636245504

 

Sterlite Tech

  • Sitting at all time high order book from 3100 cr to 6034 cr as on June 2018
  • As of the visibility today we are predicting $ 100 mn profit mark can be achieved by march 2019
  • Margins significantly improved from FY 16 to FY 17
  • One of our facilities which was operated at 45% utilization is now operated at 95% utilization
  • Overall operating efficiency is improving
  • 24-25% margins is our medium term outlook (no expansion)
  • Metallurgica acquisition will help in Europe as a startegic hub and also brings in new set of customers. Will be EPS accretive immediately
  • Out of 6000 cr order book, 5000 cr is coming from products which is largely from european markets. Rest 1000 cr is system and software development

Link

https://twitter.com/CNBCTV18News/status/1020164688032612352

Shares 0

Leave a Reply

Your email address will not be published. Required fields are marked *