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:


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:


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 :


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:


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 :


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:

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