CMI Ltd - Specialized Cables manufacturer


(hazariwalapu) #47

Hi,

Growth in profits do not look qualitative as its working capital keeps on increasing more than its turnover so company is generating negative operating cash flow. can any one throw light on it and if anyone attending AGM please show this concern to management and post the reply.

Thanks


(Satya Prakash) #48

Yesterday’s news update:

Update on Scheme of Amalgamation of CMI Energy India Private Limited with CMI Limited (‘Company’).- to Convene Meeting of Board of Directors
http://www.bseindia.com/xml-data/corpfiling/AttachLive/828fa14d-e4a8-4155-948a-dd4a099ab35e.pdf

I was trying to check the balance sheet of the company to know how much profit can come due to this amalgamation.
This CMI Energy India is same as General Cable Energy, CMI Ltd has acquired it. It is a subsidiary now.

Annual Report On BSE India, Page 47

So, here Profit after taxation is Rs 78 Cr. Am I right?
Please correct me, if I am wrong. After amalgamation, this much profit will come into CMI Energy!

Disc: Not Invested but had in watchlist.


(Dhiraj Dave) #49

@satya61229
Total assets Rs 194 Cr. Total Sales Rs 3.66 Cr and PBT Rs 78.91 Cr !!!:scream:

Check financials in details of this subsidiary.


(Satya Prakash) #50

Where to check financials of Pvt Ltd? Is there any website for free. I got two websites during search but both were for a fee.
Few times I need to know financials of Pvt ltd but nowhere to find info.

It can happen that CMI Energy has other income from sources. Rental etc.
But reserve and surplus in negative!


(Dhiraj Dave) #51

Refer to Page 178 onwrard in the enclosed PDF file. The profit is book profit due to some change in valuation of fixed assets in my opinion
http://www.cmilimited.in/invest/CMI%20Merger%20Sequence.pdf


(Akash8968) #52

you can use screener.in


(Rushikesh Kanthamani) #53

Today CMI has released its AR2017 and after going into the balance sheet I found a huge increase in Trade receivables. Their sales increased 55% YOY but trade receivables increased 179% can anybody explain why is that, M really concerned now, trade receivables/sales ratio stands at 33%+
Is company giving lots of loose credit? Any insights from anyone will be much appreciated.


(eyesice) #54

Sir,
How is it possible that Sales be 3Cr and PBT 79 Cr? Is there any other income? Where can we check the financials of the subsidiary?


(eyesice) #55

The increase is WC is likely due to the high rise in Receivables. The receivable days currently stands at 201 days. We need to find out why this is happening.


(Rushikesh Kanthamani) #56

From where you got 201 days as trade receivables? Its 83Days


(eyesice) #57

From screener.in


(Rushikesh Kanthamani) #58

Screener.in gives wrong values sometimes times, I think this is the case.
Days receivables can be calculated as under-
(Accounts Receivable / Year Revenue) x Number of Days In Year ie.360(considering 90days a quarter) .
From the image I posted earlier from the company AR , their receivables days is 141Cr and Revenue for the year(FY2017) on consolidate basis is 420Cr .
So doing the math according to above formula we get 120.8Days and not 200days as said by screener.in (Sorry for my previous post that I told It was 83days)
If there is something wrong in my calc do let me know.


(Nishant Sah) #59

There seems something wrong.

  • Borrowing of 78 crores in last FY but interest cost of 13.13 crores which is like 16-17%.
  • Free cash flow is negative? could not figure out the reason clearly.

Only looking at some negatives. There are other matrices on which they seem to be doing exceptionally well…

May be the borrowing went down every quarter?


(Rushikesh Kanthamani) #60

There has been a good amount of sales in their march qtr Fy-17 and due to account closure at the end of year they could not liquidate their debtors due to which their receivables increased and hence their working capital increased. This is the reason why cashflow is negative


(manivannan.g) #61

CMI has posted robust Q3 nos. !!

Here’s the quick snap of the consolidated nos.

image

ref: https://www.bseindia.com/xml-data/corpfiling/AttachLive/c114d52d-e2b0-4284-a3b6-093269b64668.pdf

From the Union budget, there’s a big push on the Railway infra. Indian Railways being the major customer for CMI, hope it will continue to have strong order book and nos.

Disc: Invested and will look forward to add more.