Ultramarine & Pigments


(rvetri) #51

Hi… I have similar opinion… Cos which want to communicate with investors
and share their expansion plans and market place info are always a good
bet…


(Karthikraja K) #52

AR link: http://www.ultramarinepigments.net/subpages/downloads/UPL_ANNUAL_REPORT-2016-2017.pdf

Major points:

  • an improvement of margins, with 17% gross profit from manufacturing (15.5% in FY16), and 32.8% gross profit from ITES (24% in fy16)

  • improvements are due to a continuous upgradation of our technical capabilities with a sizeable investment in plant & machinery at both the manufacturing facilities

  • On Pigment division: With a growing emphasis on R&D, we expect to keep pace with the value-added market globally and domestically (28% of sales)

  • On surfactant division: With debottlenecking of the plant, we were able to add 20% to our capacity, which we were able to use fully ( 58% of sales)

  • On windmill: The Company has optimised the ratio of captive consumption to sale to State Grid. This has resulted in reduction of power cost and outstanding dues from State electricity board

  • IT division reported an income of ` 31.36 crores, while the revenue growth remained muted, profit improved by 23% due to better pricing ( 12% of sales)

  • The export earnings from manufacturing divisions went up by 21% mainly on account of addition of more distributors in new overseas markets

  • Earnings Per Share (EPS) is at 11.10 (Previous Year 9.37) and Cash Earnings Per Share (CEPS) is ` 12.51

  • Availability of Alpha Olefin, a key imported rawmaterial of Surfactants division continues to be erratic, plagued by artificial shortages and delays in shipment

Regarding Gujarat plant expansion:

  • The Company was allotted a plot in 2011 in Dahej by Gujarat Industrial Development Corporation forsetting up a manufacturing facility. In terms of the said allotment the Company has paid the consideration and possession letter for land was obtained in May 2014. The Company is obligated to set up a manufacturing facility within the specified period as per the terms and conditions of allotment, failing which penalty as per agreement is payable. No demand for penalty is received from GIDC for the period ended 31st March 2017. (Provision for ` 1,329,770/- was made in the year ended 31.03.2014).

PS: no positions yet.


(Venkatesh) #53

Another solid quarter 35% YoY PAT growth

@Rs181 stock trades at 15.6x P/E


(Venkatesh) #54

2QFY18 PAT up 55% YoY

Stock at 280


(django) #55

There’s an abnormal increase in non-current investments.
Further the balance sheet as of 31 mar 2017 looks very different in results displayed yesterday and that shown in FY17 Q4.
The main diff is non-current investments.

I’ve written an email to the company secretary about this. Awaiting reply.

If anyone knows more about this, i’d appreciate if you can share some explanation


(Pavas) #56

They own ~ 20% of Thirumalai Chemicals which has gone up significantly in last 6 months. This I believe is part of non current investments which need to be mark to market as per IND AS. This is leading to higher non current investments.


(django) #57

Are you suggesting they didn’t show it in FY17 Q4 results because those results were not as per IND AS?


(Pavas) #58

They showed it but they have to mtm on every balance sheet date. And in last 6 months thirumalai has more than doubled so revaluing on Sept Qtr it will more than 2x.


(Pavas) #59

As per the disclosure by BSE bulk deal, Thirumalai Chemicals bought 2.05 lakh shares or 0.7% equity at Rs 294.85 each on December 21, 2017.


(Venkatesh) #60

And the stock is up 20 percent today.


#61

Sundaram Mutual Fund’s took stake in Ultramarine during Dec 17.


(Venkatesh) #62

Last year’s 3Q numbers have been restated so it looks like a PAT decline. But it is not restated in below picture it is a solid result.

Looks like company should end FY18 with EPS of Rs16 atleast


(Ram Arvin) #63

Ultramarine is planning to add capacity:

Product : Surfactants/Speciality chemicals
Additional capacity : 32000 MT
Time : 18 months from Date of acq of Land
Investment 70 Cr funded through internal accruals and Term loans
The company was alloted an Industrial plot by Andhra Pradesh Indutrial infra corporation at IP - naidupet district, AP on 2nd Feb. So expected completed will be end of 2019.

All the details taken from BSE announcements.


(Venkatesh) #64

4QFY18 and FY18 results are out. 4Q PAT growth a little tepid compared to first 9 months but still decent. Full year recurring EPS Rs15.1 +36% YoY. Stock at 18.9x trailing at Rs285


(Ankit Gor) #66

What happened to FY18 and FY17 networth, it seems some adjustments are there. This pulling return ratios down.


(django) #67

Mostly it is the impact of valuing stake in thirumalai at market price as per new accounting norms


(Venkatesh) #68

Under Ind AS your market investments have to be valued at market value and you need to MTM on a quarterly basis. This has resulted their stake in Thirumalai getting valued up on the assets and consequently the networth has been revalued as a balancing item.

Non current investments have moved up from Rs18.3crs to Rs371.8crs. This has bumped up reserves from Rs141crs to Rs505crs


(Kuldeep2017) #69

As per annual report 2018 they are holding 20.45 lac shares of Thirumalai chemicals. Considering the Thirumalai Chemical’s stock value on 31st March 2018 was Rs.171 approx. the total market valuation turn out to be Rs. 34.96 Cr. as on Mar18. How come they have shown it to be Rs. 349.26 Cr. It doesn’t make any sense to me. Kindly forgive if m missing anything. I will be very thankful for clarification.


#70

There was a stock split recently.

“The company at its meeting held on May 03 recommended to the shareholders consideration for splitting of 1,50,00,000 equity shares of Rs 10 each in the authorised share capital of the company into 15,00,00,000 equity shares of Re 1 each.”


(Harshit Goel) #71

Ultramarine & Pigments Ltd. FY18 Annual Report Notes

  • We are pleased to report a 32% increase in profit and a 11% increase in revenue over last year. Profitability has improved by 29%.
  • Sale: Surfactants = 56.53%, Pigments = 30.96%, ITes = 10.70%.
  • The Pigments division achieved a net revenue of 87.42 crores in this financial year (as compared to 72.61 crores in the previous financial year) and showed a 20% increase in value. This year, it has achieved the highest volume and the highest value of Industrial sales in the Company’s history. Our focus on customisation of products has yielded better volumes in the export markets.
  • The Surfactants division increased its revenues by 7% to 159.69 crores in financial year 2017-18, as compared to 149.47 crores in financial year 2016-17.
  • The Surfactants factory in Ranipet is running at full capacity. With a focus on optimising the product mix, and increased value addition for the customer, the division has seen a 13% increase in both sales volume and profit over the previous year.
  • ITes division reported an income of 30.25 crores which is lower by 1.11 crores when compared to previous financial year.
  • The windmills generated 59.79 lakhs units, which is lower by 15 % as compared to previous year. This reduction in wind generation is due to poor wind season. Your company’s captive consumption from wind mills has increased to 43.11 lakh units from 11.43 lakh units when compared to previous financial year which resulted in reduction of power cost. Power cost reduced from Rs. 12.79 cr. to Rs. 11.72 cr. in FY18 despite increase in volume and turnover.
  • Export earnings from Manufacturing went up by 41%. Export sales increased from Rs. 35 cr to Rs. 49.9 cr in FY18. This increase was facilitated mainly by the greater volumes of high value pigments sold on the global market. It was also assisted by the addition of exports sales in the surfactants business, especially in the Asian market.
  • Company is setting up a greenfield surfactants project with an annual installed capacity of 30,000 Tonnes in Naidupeta, Andhra Pradesh. The estimated project capital outlay for the same is approximately ` 70 Crores. The Company will contribute one third of the planned capital outlay out of surplus funds and the balance by way of a term loan. We expect to commence commercial production by third quarter, 2019.
  • Gross block of the company as on 31.03.2018 is approx Rs. 140 cr. Off this 140 cr Plant and Machinery is Rs. 69 cr. Capex of Rs. 70 cr. includes land cost of Rs. 12 cr. So new Capex will be approx 70-80% of existing gross block of P&M (excluding building cost).
  • Cash and Mutual Funds of Rs. 63 cr and investment in Thirumalai Chemical valued at Rs. 349 cr as on 31.03.2018.
  • Cash Flows were excellent during the year due to reduction of Working Capital Days from 45 to 30 days in FY18.
  • Promoter stake increased during the year from 52.56% to 53.26%.

Regards
Harshit