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

 

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