Maybe someone residing in Jaipur has some local intel on the relationship factor within the family. Family tussles are difficult to hide no matter the coverup.
In the same interview he also mentioned something about setting up a new plant in mysore by shifting 1 line there and in future that plant having capacity for 4 lines in total… this is a new development , atleast i wasn’t aware of it. in nov15 at the analyst meet also nothing on these lines was mentioned. could some other senior contributors shed some light on this development…
Outcome of Board Meeting 22.06.2016
Manav Podar become Managing Director from 01.04.2017 to 31.03.2019 subject to approval in AGM
I am particularly concerned about the increasing receivables and increasing inventories. Since the last 5 years there has been a steady but sustained increase from 16 days to 39 days in inventory and from 39 days to 51 days in receivables.
In March 2016 too, receivables have shot up to 72 days and inventories have increased too to 42 days despite flat sales growth.
Typical payment terms of auto companies should not exceed 30-45 days. Why this excessive receivables?
Normal receivable terms of most of the auto companies are 60 days and they hardly pay on time (from self experience!). So I would not be worried about 72 days days of receivables. Also as % of export goes up, it will tend to stretch receivables/inventory (depending on inter company transfer shown as sales or not) as many auto giants like GM, Ford etc expect the overseas suppliers to deliver JIT from local warehouse.
You must also remember that export auto business contributes less than 30% of the total business. 72 days receivables is for 100% of the outstandings.
In 5 years receivables have basically gone up 3.5 times whereas turnover has only gone up 2 times. At some point this must stabilise otherwise it is a bad sign.
You have a very valid point as far as the receivables going up is concerned.
However as per SKPs own assessment he believes that the sales are quite profitable even though they come at a slightly higher cost in working capital terms. it takes a long time for the shipment to reach the target market plus the credit periods given are slightly generous. As Mayur is now operating its fully owned subsidiary it will also get loans at a reasonable rate(as interest costs are lower there). Plus receivables going up are not only limited to Auto OEM, even the general export business is growing fast…
All in all a slightly higher working capital is acceptable as far as exports grow profitably.
Receivables increased in their wholly owned subsidiary by Rs.30 crs which was Nil last year. ARFy2016 pg no: 86. related party transaction segment.
What was capacity utilization in FY2016 ? how many meters of synthetic leather company sold last year?
anyone attended the AGM?? An update from the meet would be most appreciated. thank you.
Mayur to consider buyback
Decent results from Mayur. No buyback announced, which is a good decision according to me as the market is not right for buybacks.
Buyback announced–A proposal to Buy-back up to 5,00,000 fully paid up Equity Shares (Five Lacs) of the Company for an aggregate amount not exceeding Rs. 25,00,00,000/- (Rupees Twenty Five Crores onlybeing 1.08% of the total paid up equity share capital, at Rs. 500 (Rupees Five Hundred only) per Equity Share (hereinafter “Buyback Price”).
Right. Buyback announced. Maximum price 500 for buyback. Promoters intend to participate in buyback. I don’t understand the need for dividend in such a case.
Also news of resignation of Independent Director and Internal auditors.
Any source from where you got know that Promoters intend to participate in the buyback?
Internal Auditor change might be due to the rotation policy (will have to confirm).
I am not able to understand that why do promoters want to participate in the buyback? Somewhere this story is falling out.
Buyback is just another way of giving back cash to shareholders. The buyback is for about 1% of the shares. This is similar to a 1% dividend. The advantage over dividends is that the company avoids the dividend distribution tax and promoters will avoid the surcharge as they receive large dividends. Hence participation of promoters is not really an issue.
Does Anyone have annual report of Mayur for Year 2009, 2008, 2007, 2006 and so on .
If yes , Request you to send the report to my mail id : [email protected]
Anybody has any information or interactions with management about PU Leather plant of Mayur?
What is management focus on it?