you cannot annualise the eps since their business is seasonal march and june qtr being the strongest
Has anybody attended the AGM ? Please share notes
CFO has resigned.
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=b9e51c5c-f4ae-4dd4-8497-9d55a2a5a3e3
CFO resignation is normal & donât think much. If CFO gets better job/pay package they move on just like other employeesâŚ
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The CFO was appointed in Dec 2016. He keeps changing his job every few years. Check his LinkedIn profile to get an idea.
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Here is the BSE link for the earnings call tomorrow(31st July at 11AM)
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=57184ce6-3f9a-4674-a0b7-8e2e03d92a2a
But it doesnât have the dial-in details! If anyone has the details, please post it.
Just got the details from Valorem Advisors (Everestâs IR/PR agent), attaching the document.Everest Industries Ltd Q1-FY19 Earnings concall invite.pdf (362.1 KB)
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I attended the concall and few updates:
(1) Management is bullish on Margins and profitability. In closing remarks, MD specifically mentioned Q2 gonna be better than last year Q2.
(2) Seasonal business, Q1 is the best quarter where demand picks for building material before monsoon.
(3) Capacity utilization 85 percent. Peak capacity utilization around 90% for building products and 95% for steel buildings
(4) Raw material price stable and contract is for one year and contract renewed in Janâ18 (Only risk fluctuation of foreign currency)
(5) Net Margin-5% by Q4
(6) Everest super is well received in the market and demand is growing.
(7) Steel buildings in loss due to execution of old orders
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I joined the call a bit late and here is what I jotted down at that time:
Margins have improved because of cost control.
Good rural demand.
Because of the policy of keeping smaller inventories, truckers strike caused a little bit of problem but not much.
Estimated capex is going to be 20-25 crores (Not sure if they meant for this year or next)
Steel buildings segment margin is less because of steel price increase and old contracts at lower steel prices.
Even though the contracts have a price escalation clause, it is more to do with increase in levies(import duty) and it doesnât protect the company from secular steel price increase.
Steel buildings segment is anyway a high turnover and low margin business.
30% of the current PEB order book of 30000 MT has the old orders with low steel price and hence there will be margin pressure until that portion gets over.
The management is going to focus more on efficient execution in the steel buildings segment.
Building products contributed more to the growth compared to PEB segment.
Everest Super roofing has 20% more gross margin compared to the normal roofing.
Building products capacity utilization 85% (Total capacity 7.8 lakh ton)
Steel buildings capacity utilization 78% (Total capacity 72000 ton)
10% capacity increase is planned for the roofing line.
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Could this be tailwind for Everest?
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Asbestos is hazardous to health. Isnât this a big risk? Roofing contribution is significantly higher to overall business. And I think even new product Everest super uses asbestos
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Here is a link about Cement/Asbestos Sheets kindly go through this
You will also notice that this is a very old technology and is not into existence at most of developed world.
But the results posted by Everest have been pretty impressive. I donât know how much of their revenues come from Cement Sheets but revenues are sizeable then it means that there is still big market for such sheets in India.
Regards
Aman
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One of the product - Everest Hi tech is non-asbestos so looks like they have a mitigation plan in case asbestos is banned.
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Hello all companyâs shareholding pattern shows rights issue for some Vale investors.can any one tell at which price company issued rights
very good results of Everest Industries for Q1.
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H1 / Q2âFY19 EARNINGS PRESENTATIONEverest Ind H1 Q2âFY19 EARNINGS PRESENTATION.pdf (1.8 MB)
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Everest Industries : Expects its building product segment to grow by around 18-20%
The company held its conference call on 26 Oct 18 which was addressed by Mr. Manish Singhi Managing Director
Key Highlights
Strong rural demand helped better performance in Sep 18 quarter.
Building product (BP) Industry is growing at around 11%, the company is growing at around 18-20%
Increase in market share across product segment and increased penetration.
No tangible obstacles so far despite macro headwinds
Except for a few places, monsoon is good. Low ticket items like building product is not affected by low monsoon.
Shift from unorganized to organize continues. Most business is shifted to new way of doing business post GST. GST has removed anomaly of higher taxes for building product roofing vis a vis steel roofing.
For the quarter, volumes in BP segment have grown by around 20%. 90% capacity utilization rate.
Boards and panels have seen better volumes in domestic market. Enhanced utilization and better volumes helped margins. Export markets to continue to remain down
16000 MT of volumes done in steel building segment. Timely handover of project to customers helped better margins. Not affected by movements of steel prices.
Order book is around 24000 MT
Some plants enjoyed duties and taxes waiver which got expired in the quarter but no effect as such on profitability.
Expect margins to remain stable despite headwinds; however extreme rupee movement can affect margins.
Generally election year is a good year for building product segment.
Overall expects BP segment to grow by around 18-20% in FY 19.
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Everest Industries: Steady and sturdy demand to aid growth; Research Report Anand Rathi report available Moneycontrol Buy Everest Industries; target of Rs 575: Anand Rathi
Everest-Industries_021118.pdf (390.3 KB)
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Mohnish Pabrai meeting everest industries management tomorrow (15th nov):
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