Prima Plastics


(J2EE Professional) #104

bse website could tell you if its already been intimated by the company. if not then wait till the schedule is given to the bse


(Rama Kumara Nagaraja) #105

Hi
Where can i get more of this information? Is there any website?
Comparing nilkamal and prima~~~ only on their plastic business and NOT retail

ramu


(J2EE Professional) #106

its very simple. just download their respective ARs and work with the segment results. this much effort is required if someone wants to unearth gems


(Rama Kumara Nagaraja) #108

Can somebody show me where they see the debt of this company is 0?
i looked at their annual report and could not find the Debt, maybe im doing wrong.

Also, debt does not include working capital debt ~~ am i correct?


(gururaj) #109

Rama,

Go to Page 66 in Fy15 AR and you will find Long term borrowings (debt) as 27 lakhs which comes to debt to equity of 0.06.
Working capital debt will be included in the short term borrowings.


(mukul aggarwal) #110

Any updates on the Q4 results? Supposed to be out today.


(mdayyub) #111

Results Announced :slight_smile: :
Standalone & Consolidated Financial Results, Form A, Auditors Report for March 31, 2016

http://www.bseindia.com/xml-data/corpfiling/AttachLive/27590A64_37A2_4489_B396_A4F5ADFE45FA_231945.pdf


(mukul aggarwal) #112

Good results as expected. But looks like two areas of concern to me:

  1. their segment PBIT for the furniture business has declined sharply in q4. Any specific reason behind that?

  2. JV profit also looks to have marginally declined yoy. It only contributed 2.74 in EPS for 2016 vs. 2.96 in 2015. Are they facing margin pressure here?

J2eeprofession_ any views?


(J2EE Professional) #113

the JV profitability concern is valid, though i am still not too worried on that front. last year q4 fy15 profitability was an aberration as it has twin benefit of low cost inventory with price hike being played out. in any case i never believed that could go on. Overall, i am quite happy with the results though the JV profitability needs some more clarity.

Furthermore, its important to note that the balance sheet has improved significantly. The short term borrowing has reduced dramatically, probably their working capital cycle has improved. Look at the swelled cash balance. its wonderful.

I am not worried about this company at all, so normally would not be worried till i see any red flags. The RoE, RoCE has improved significantly and as i keep on maintaining—an self-funded expansion is icing on the cake. The secular growth is unperturbed.

Any other red flag do you or anyone see ? let’s discuss


(Rama Kumara Nagaraja) #114

Looking at the AR report, i have one doubt at segment results.
I thot their ACP business was closed as a loss making venture.
Interesting to see they make 41 crores revenue from that???:hushed:
not to mention they made a profit of 112.87 Crore on that?

how is that possible?? rama


(hazariwalapu) #115

Well said . As in last qtr their Depreciation is increased to Rs.1.07 crs from Rs 0.25 crs last year. also their employee cost and other expenses has increased. but overall their margins have improved on whole year basis. Now if you consider Profit before tax, interest and other income - standalone base - 8.49 crs and consolidated ( with camroon) - 16.37 crs while last yr it was standalone - 3.20 crs and consolidated - 10.98 crs. so camaroon contribution is - 7.88 (Fy16) and 7.78 in Fy15. as you can see other expenses has seen a jump of almost Rs.5 crs yoy on consolidated basis.

so we need to find out what is other expenses. overall results are good and Increase in RoE and Roce is good too so it is a quality growth.

Prashant


(mukul aggarwal) #116

All the above points are very valid. But i have a question: what is going to drive the growth going forward? Last year the profits grew driven by closure of the loss making business. JV was supposed to be a big growth driver but it has not performed that well. What kind of growth we can expect going forward i.e. 10-15% or > 15%?

I am asking this is because in the end market rewards high growth companies. All the improving ROCE is good but it all is secondary to growth…


(J2EE Professional) #117

we all know that growth is coming. the cameroon JV is already going expansion so probably it means (looking at the results) that the jv was operating at almost full capacity. Also, let’s not forget the domestic expansion in AP and the latin america expansion. As you must be knowing the key to riding winners is to look at the bigger picture and not get too bogged down by the day to day price pattern. Hope it helps.


(mukul aggarwal) #118

100% agree with you. I knew that they are doing capacity expansion both domestic and in their JV, but unsure of the timelines.

Do you have any idea when they are going to complete the expansion and the effects will start coming in?

Disclosure: 10% of portfolio. No activity in past six months


(gururaj) #119

Mukul, As per the latest IDBI Report(April '16) African Expansion for doubling capacity should complete by end of current quarter**(Q1FY17)** and Latin american JV should be operational by August 2016. .

W.r.t Domestic operations Andra Plant should be commisioned by July 2016. I am looking forward to the 2nd half of FY17 & FY18 considering any delays which might be uncalled for.

Please find the report as attached.( Files are in Jpeg format you might have to segregate them and convert to pdf)









(Whipsaw) #120

@frozenraj Direct PDF link to the report: http://idbidirect.cmlinks.in/Admin/Pdf/74577371_PRMP-CR-110416.pdf


(J2EE Professional) #121

i think the above research report answers everything.


(sowrabh) #122

Y isn’t the management communicating about the order it has received from government?? Shouldn’t this info be made known to the exchanges and shareholders?


(Shan) #123

Ordinary business is not required to be reported. If a steel company gets order for steel, tire company gets orders for tires or an IT company signs an IT project they are not required to report anything because this is expected from them anyway. Of course if they choose to notify no one is stopping them but they are not required to.


(Gaurav Agarwal) #124

You can have a look at Listing Obligations and Disclosure Requirements rules 2015 on SEBI website and see for yourself what are disclosure requirements for the company. If I remember correctly any information which is price sensitive and could effect revenue by certain percentage needs to be disclosed.

SEBI complaint system Scores has a separate section for complains related to violations of these rules and I can tell you they do investigate.

Many companies violate these requirement because small investors do not press their rights.