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