here you go…
Regards,
Raj
Disc: Not Invested
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let me try to explain the reason for warehouse: say repro uploads a book from Ingram on Amazon for print on demand. Soon in a day or two they realise that they are getting 100 orders everyday for this product. It would make sense for repro to go for Offset printing rather than pod. In offset, cost Per book goes down with every additional book getting printed. Only issue with this strategy is having correct estimation of demand.
In my opinion, this is the right strategy. It is important for repro to get market share for front end titles in a meaningful manner. Also, they might be getting good analytics from Amazons data on order flow. So it is correct to take advantage by having a warehouse.
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let me add my key take away: Passing on the paper price fluctuations to the publishers.
I see two positives:
1 As Mr khera explains that cost benefit and highlighted by you Kunal. You being from industry validating inspires confidence
2. Getting in a situation where one needs to do demand forecasting highlights bulkness of demand and may be demand to some key books ( Pareto) where supply chain efficiencies can come in. This within 4-6 quarters is a very encouraging sign complimented by expansion plans
Also, reminds during one of concall Mr khera had said with regional centers , time to deliver will reduce and hence better customer share of mind which will hopefully convert into better revenue
Neverthless, all these expenses , capex n run rate type KPIs need to be tracked closely
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I have few questions 1) what would be the utilization when the capex is done for 16-20k books per day? and how much is the utilization now.
2) why are they still not talking anything on the margins? :-/
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Guys, show some maturity & stay away from posting one liners or asking novice question on price movement. Let us not waste precious space of the forum.
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Can a whole time directors wife remain in public holding ? As i have observed the same in this case in sep’17 holdings.
Bharti Airtel - Interesting Acquisition
Acquires strategic stake in Juggernaut Books
Digital Platform to read high quality affordable books
Juggernaut has 5000+ titles by Authors like - Twinkle Khanna, Rajdeep Sardesai, Arundhati Roy etc.
Airtel acquires strategic stake in Juggernaut Books , a popular digital platform to discover and read high quality, affordable books and to submit amateur writing.
Co says move is in line with Airtel’s endeavour to build an open content ecosystem & bring world-class digi content.
The investment from Airtel will enable Juggernaut to ramp up content acquisition, digital marketing and prepare for a subscription offering launch in the next few months.
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Guys please answer my below questions (very eager to know):
- Cost of materials has increased by more than 7 crores qoq where as top line is flat, is it due to change in paper prices? but the management said the rise in paper price will not be of significant effect, but 7 crores is significant.
- Why the finance costs have gone up again (almost by 15%) both qoq and yoy, in spite of reducing debt :o
- They have added the 631 lakhs in other expenses (amount recovered from the debtors), they are saying that it will be contingency fund, will this be shown as cash on books at least?
- If we check last year q2 result it is 5 crore loss, they are showing it as 17 crore profit in results and presentation today :o is this negligence or am i missing something.
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Someone being bullish is comforting?
Management focussing on mcap is not a great sign. Management must focus on the business and must keep away from mcap games.
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Very good questions. I am especially interested to understand why they are showing a profit of 17 crore for Sep 2016 when each and every report published a loss of 5 cr last year.
Friends
- Currently they are selling 4000+ bpd which translates into 3.6 cr per month. As mr.khera said to Quint interview it will reach 16000+ bpd Q1FY19. which will translates into 15cr per month and 45cr a quarter. Profit margin they have not disclosed but if we assume 12% npm then 5.5 cr which translates into Rs.20 eps means 40 times FY19 Earnings.
After this period the real game will starts…
2)Now in us online books sales is 5lacs bpd which 50% of whole market. So if we can reach 10th of us market by 2020 then it will be 50000 bpd which translates into Rs.61 eps.
Imagine if they successfully delivered this number then what will be the price.
3) Dont forget they have 1.6 millions of titles which is entry bariar …
4)Can we assign 250 cr of mcap to old business?
Then we are paying 650 cr to BOD business with ingram.
5)Mr.Khera said they are going pretty faster than what they have projected thats why they have needed money.
6)Malabar india mr.nagar and vijay kedia another factor of confidence
7)If Amazon take over Ingram then Repro will only be printing company! ! And price will be Rs 100. Everything depends on ingram which is privetly held company.
Guys i have just started learning stock fundamentals and all ,so correct me whereever i am wrong.
Disc: Invested 25% of portfolio.
Hello kuldeep
I want to share something here.
Their current earning in bod is 4 cr per month .
Their titles are 2.2 millions, not 1.6 .
Ingram has already cleared many times that they will never sold to any one at any cost .
And in valuation aspect… they are growing at very very fast speed in bod so there is no any worry even if they are trading at 60-70 pe of current eps.
Because at the end of the day price will follow the earning.
And Mr Nagar and Mr kedia sir are not buying stocks for 2-3 times of returns.
Their history tells us about that .
So pl think big about repro if you hold 25% of your portfolio.
Mine is 45% .
Disc. Will remain invested upto 2030 because I strongly believe that the journey will only be started after 2020 .
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Has Kedia a track record of always being right ? He has been recommending it for last many years- but there is no improvement in company financials.
How many would have bought it at these valuations, had Kedia had not been recommending it - probably none.
Is no one interested in answering the questions? Or no one has an answer? Let’s keep aside the market cap for some time and talk about the problems and solutions.
Looking forward for answers from Experts.
Hi,
I have mailed the company secretary about your questions which are all genuine. I shall post once they reply.
Thanks,
Kunal
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Hi btunuguntla,
- Cost of materials as a % of sales is more or less same qoq after considering changes in inventory.
- I don’t know why finance costs have gone up this quarter though there have been minor fluctuations in the past as well. Also the debt reduction could have happened at the end of quarter. I would tend to focus more on the annual numbers.
- The 6.31cr provision won’t have any impact on the cash on the books.
- The change in profit for q2FY17 is due to adoption of IndAS. They have given the reconciliation of numbers on page 3 of the results. It’s mainly got to do with reversal of provision for expected losses on trade receivables of Rs14.3cr.
Hope this helps.
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Thank you!
For the 3rd point: so the entire provision is done right in q1 and q2? so we will not have higher other expenses from q3 which will result in higher PAT.
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As and when they recover debtors, they will show it in other income as well as other expenses so there will be no impact on PAT. They have done the same for Q1 and Q2FY18.
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