I disagree. Though i too do not know about the actual SEBI rules but going with my reason , such disclosures should be avoided. It can be used as a means to manipulate the prices.
Manipulation happens when there is a leakage and leakage happens when information is shared with a selective group not publicly disclosed. I don’t think I can explain in more simpler terms n it is more of interpretation the way one wants to interpret. Also, governance is something where one needs to look at multiple signals n take a call. However, you ve all right to make judgement out of interpretation n respect it. Regarding , good or bad sector, as per good to great by Jim Collins , more than half of the companies figuring in good to great list were not from the best of industries but very mediocre industry . However , I won’t even get into this debate if one has not studied the company in detail n let it be our personal choices and respect it. Thanks
I got it. Though not exactly manipulation but my reason does not justify such disclosures well before the quarterly filings. Anyway let’s end this here till you get a reply from the company regarding such practice which in my opinion can be avoided.
I agree with @suru27 on management quality. Most management would take home all that is allowed as per norms. There were years where Mr Chandran was not drawing any salary. And any information shared on a public platform and at the same time made available on exchange should not be seen as malicious.
I have not said anything wrong on the part of management. In fact it is hard for some one to fill Mr Chandran shoes in future. He has build this company with pure hard work and devotion. I only said that such disclosures can be avoided considering the best governance practices. What if they do not tell those details in AGM and only emphasized on the last financial year and Quarter 1 numbers. Though publicly available to all , but I believe that this prior discussion before the official declaration of returns to exchanges may have an impact on price movement before results as many will calculate the approx bottom line and can be seen (in bad light) as a step by management to reduce the current fall in market price of the company Shares.
AGM is an official gathering of shareholders and proceedings are legal when there is quorum. Again Management declaration of numbers in the AGM could not be construed as unethical. Quarterly filing is mandatory but does not prevent management to give a press release about their performance in between mandatory filings.Shareholders will be in advantageous position by this kind of disclosures is not correct as they are stakeholders and have a right to know the company’s performance at any time of the year. There are many instances where the top management has disclosed info in AGM .(Remember : Dhirubhai Ambani has declared 1:1 bonus on those days in the AGM prior to disclosures to the exchange.).
This is completely wrong to disclose quarterly revenue in AGM. The gathering is mostly to discuss their strategy and vision with shareholders and address any complains if any. What was the purpose of this disclosure when the numbers are not audited. This shows weak understanding of regulations if not grossly unethical. Why not a exchange filing? do all shareholders get to attend AGM?
Just adding to discussion .
Yes bank just released its un-audited quaterly results.See the link below
So I think it is allowed by sebi.
If its a good management practice is up to each persons interpretation
Each one has a way to value a company . This company has shown good gr , has been debt free but it still will get influenced by sector characteristics in bear market
So simple way to look at any stock is to see how much a stock can fall in bad times from its peak
In case of Ambika cotton 2007 to 2009 - this stock fell from Rs 320 odd to Rs 40 odd – so if you look at recent high of Rs 1600 it can max fall to 180 / 200 - and if you are ok to hold through these times , you should not bother about current prices as long term as many has said it will do well …
Yes, it appears so.
“Yes Bank officials told Moneycontrol that the disclosure of Q2 numbers, ahead of the official declaration of earnings, is not in violation of SEBI norms.”
In my opinion, declaring it during AGM is not advisable since, as someone rightly mentioned, people who attend the AGM will be able to act on information which others don’t have access to until the post-AGM disclosure is made to the exchanges.
Latest credit rating report - https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Ambika_Cotton_Mills_Limited_October_03_2018_RR.html
Thanks for the update.
The last credit report from CRISIL seem to have been released on August 24th https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Ambika_Cotton_Mills_Limited_August_24_2018_RR.html
Both reports look identical.
How often do they release these credit reports?
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My impression Limited pricing power so gain will be one off on inventories & will come probably in the next two quarter results.
Q2 FY19 result. Decent Numbers.
Topline grew by 20+% even before the capacity expansion completed
Another steady performance from Ambika -
- Revenue increased to Rs. 175 cr from Rs. 163 cr in last quarter
- Gross Margin reduced to 31.6% from 35% compared to last quarter. GM in H1-2019 is similar to H1-2018 ~33%
- EPS of Rs. 29.6 compared to Rs. 29.4 compared to last quarter. H1-2019 EPS of Rs. 59 compared to Rs. 51 in H1-2018!
- Receivables reduced to Rs. 8.3 cr in Sept end from Rs. 13.6 cr in March end !
- Cash and bank balance of Rs. 31.6 cr. No long term borrowing. Short term borrowing of Rs. 55 cr up from Rs. 28.5 cr in March end.
- Interestingly, Trade payable reduced from Rs. 6 cr from Rs. 61 cr in March end . This is too big a change. My sense is Ambika is under pressure to pay in advance to secure supplies of raw material.
Could be higher share of knitting contribution as it had not reached optimum capacity and may be some currency benefits though not sure if euro n other Asian currencies were relatively up against rupee .
Also, had other expense not been 60-70% up , PAT growth would have been much higher. Possible reasons could be
- Initial expenses due to capacity Ramp up which would later contribute to revenue
- Traditionally, power n fuel, freight , packaging n brokerages ve constituted 80% of other expenses. So, crude may have had some impact on few of these items
Thanks for sharing the key highlights.
Since payables have shrunk drastically, it is impacting their working capital cycle, which is getting funded by short-term borrowing that has doubled.
Hoping it to be a one time blip due to as you mentioned the need for secure supplies.
Will need to keep a keen eye on these variables in coming quarters to judge the direction of the business.
Also a bit surprised to see both cash and debt increased substantially this quarter.
Disc: Invested and it forms 10% of the portfolio.