But they did not bother to inform shareholders earlier. Did they ?
I wonder how any company can declare results in 2 days after closing the quarter? MNC’s work very hard to close monthly financials on 4th/5th working day. These guys seems to be highly efficient
This is clearly a red flag in my opinion.
Disc - Not invested. on watchlist.
We need to avoid these kind of companies. Worst case of Corporate Governance. Not bothered to inform the Shareholders. He just brushed aside the Shareholders’ concerns
What I find strange is that such a small mistake(?) of omission can make us come up with extremely -ve remarks on promoters. I fail to understand how does it suggest corporate mis-governance, has there been a financial wrong doing on part of promoters?
What kind of view do we have about the business? Is it a quarterly view or is it a view of long term wealth creation and has this non disclosure of a routine plant closure (it got extended by 30 odd days) changed that.
I think we as investors need more maturity and a balanced view when we start criticizing promoters.
Discl: Not invested have a +ve bias.
I would say Yes. They have an obligation (legal or otherwise) to disclose a material non-public information to ALL share holders and the prescribed way to do that is to file it with exchanges or SEBI. They have not done that. they are saying major shareholder know about this so they are OK with that. Retail shareholders are insignificant (although it is their capital that they are using to run the business) to them.
They could have disclosed that information to major shareholders who would have sold prior to this announcement and now these people can buy it back at a lower price.
A financial wrongdoing as I see it is when the promoters have derived a financial benefit out of their mistake of omission or commission and of course my subjective judgement about the entire situation. I do not look at the legal angle of what the promoter/management has done but more from their intention. The assessment of intention is of course subjective and it would not make a fine legal argument Having the tracked the promoter and the company I see very little reason for me to believe the same.
Promoters are not so naive and there is no need to believe too. I don’t want to extend this discussion further.
I attended the conf call. please find below my notes:
- Revenue declined mainly due to stoppage of production for 70 days at the freeze-dried plant /20 days at the spray-dried plant at Duggirala /20 days at the Vietnam plant due to refurbishment. The company undertook refurbishment to maintain, upgrade, and customize equipment to cater to demand from large customers, increase production capacity by 5-10%
- Normal production resumed from 25th september.
- The refurbishment resulted in decrease in production for the quarter by c.2,500 tonnes.
- The refurbishment was initially estimated to continue for 45-50 days. however, it was extended owing to unforeseen complexities.
5.The total cost of refurbishment was estimated at c.Rs150m, out of which 80-85% was expensed.
- Export incentives worth around Rs4 cr were recovered in 2Q FY17, leaving the backlog of pending incentives at Rs21cr . Mgmt expects to receive c.Rs10cr in all of FY17, including the Rs4cr received in 2Q.
- Mgmt stated that the company’s B2C brand received a good response in Guntur district, with branded sales up ~150% vs. 2QFY16 on the back of promotional activity.
- According to mgnt the increase in inventories was attributable to build-up of green coffee inventories which should decrease going forward since normal production has resumed. The increase in inventories led to a rise in short-term borrowings, which should again taper down in coming quarters.
I saw recently in Guntur during my holiday visit their promotional stalls in the city - but unable to buy and taste the coffee. Next time will try and provide feedback.
CCL PRODUCTS has formed a head & shoulders pattern on weekly charts and has completed the pattern formation with its Right shoulder taking support at the crucial neckline of the H&S pattern at 240 levels and is probably waiting in the wings for the next move. As on 11th November 2016 it has closed on 240.10 . It is also right now taking support of a very long trendline which is seen in this chart. Disclosure: Not invested in CCL products. On my watchlist at present
@ayan20079 Thanks for the chart. Can you consider today’s price action as trend reversal? What could be target?
I had their coffee ordered(amazon.in) to Goa and they delivered the coffee along with a additional bottle of a different flavor as complementary/trial.
I am a tea person, So I asked my wife and sister inlaw to try it and their feedback is that is good ( a little on the stronger side but u can reduce the coffee qty u add to your cup)
Disc: Invested since 2 months.
The capacity addition seems to be fully operational. Also the clarification on Swiss operation is reassuring…read the latest interview with the management http://economictimes.indiatimes.com/opinion/interviews/global-coffee-consumption-and-the-coffee-segment-is-growing-challa-srishant-ccl-products/articleshow/56350435.cms
Market waiting for the earnings confirmation…for the next level of price action.
Discl: invested…profit booking done recently…This is not a recommendation for investment. Do your own due diligence and take informed decisions.
Mind blowing Q3 results…take a look for yourself
Q&A session prepared by Saket Lohia