7 August BKT Industries Concall Transcript ( My quick notes)
1). Pricing - No pricing change in last 3-4 months
Rubber - 135 down to 126 Rs/Kg
prices will soften further
Carbon Black & Nylon - not much changes
2). Order Book - run rate increased 10-11 K MT to 13-13.5 K MTper month. Some slowdown. Customers are taking cautionery steps- reducing tehir own inventory levels (like we hav done onRubber)
3). titan in Us, michelin in Eu - slowdown
effects will be minimal on us. as our business model is towardsreplacement market.
so sticking to guidance -160-165 K MTPA- oh yes. v much
4). Agri : OTR -new plant 55:45 in new plant ; 70:30 in oldplants
5). Capex -895 till june; FY13? another 500 Cr; balance will beincurred in FY1`4
6). Other Exp - variable in nature; increases in proportion tovariation in Sales. Exchange loss of 17 Cr on Sales & purchase transactions- thats more like a one-time hit; rest are variable in nature
7). Rm - prices on declining trend. No posssibility of priceincrease.
8). Eu situation vs Capex expansion - we will go ahead. confident to maintainguidance. Current situation - is going on for almost 4years.There may be impact on order flow...but our focus onreplace markets impact will be minimal
9). better Realisation - On account on better currency realisationrubber average cost - around 3500 $ per tonne. will come downto $3200 levels
10). OEm seg effected first in a recession situation. Peoplecontinue to operate the existing equipment - for which theyneed to keep buying replacement tyres.
11). mining & Construction - bullish - by Titan & others.
SKUs fro MIning mostly ready. Chopanki & Waluj plant we have smallcapacity OTR ...we are just enhancing thisOut of total 30-35% is OTR. Mining will be around 9-10% . withnew plant OTR share will go to 45%
12). capex 600-700 Cr in FY13. another 500-600 in FY14.
Exports 90% ; imports is 50% . Net exposure is 50% in Euro.rolling basis ----forward covers for next 12 months. euro 71rs; and $ 52-53;BS : no hedging: repayment is 3 yeras later
20 Cr forex loss - purely notional. On the working capitalborrowings
13). Radial share will go upto 35% from 25% earlier.
14). Titan or MIdas expansions. Dont have much idea about our
peers. Dont think they are expansing in any big way
15). Global otr market 8 bn $. growing at 4-5%
16). FY14-15 picture :ebitda groos - 18-21% - tragetspat front - around 9-10%
So you dont seea ny declines? No
17). 70:30 agri & OTR-capacities fixed; biasd & radial - again fixed. Butcan be changed with additional equipment. radial & biasdifference tyre cost - 10-15%.
18). Cost of plant on TPD basis ; hard to say, but ball park - 4 cr per TPD cost.
19). debt - 1600 CR - cash of 100 cr. net borrowings 1500. termloan is 850 Cr; balance is working capital
20). 200 distributors across 120 locations.
21). Rubber inventory of 2 months - average cost $3500 per tonne
22.Any impact of carbon black anti-dumping- No, we are not impacted by that.Scheme of advanced licensing - we can do duty free imports.
23). Q2 - margisn to improve definitely. RM going down to 3200$.
24). Target margins - are at 20% for the year