Wim plast

(Harshit Goel) #163

WIM PLAST LTD FY18 Annual Report Notes
Management has hardly given any information in this year’s AR. It looks like the expansion done in FY17 of Coolers division and Sheet division hasn’t picked up any pace. Company has closed the year with higher inventory though, that may be indicative of better June 2018 qtr. Company was more or less able to pass on the increase in raw materials cost to the customer as the material cost increased marginally from 53.42% of sales in FY17 to 57% in FY18, it was the subdued sales growth which affected the company.

  • The Standalone revenue from operations for financial year 2017-18 was 385 cr as compared to 351 cr of the Financial Year 2016-17. The Standalone Profit after tax for the year has decreased from 4,857.88 lacs in FY 2016-17 to 4,468.26 Lacs in FY 2017-18.
  • Inventory as on 31.03.2018 was Rs. 102.94 cr (Includes RM of Rs. 50 cr and Finished Goods of 44 cr). YOY inventory days increased from 81 days to 97 days.
  • The company is expanding it’s moulding capacity with high tonnage machines at Daman and Chennai.
  • Last year the company launched various range of products in moulded furniture and new coolers in Window, Desert, Mini Desert and Personnel cooler categories.

(Growth_without Debt) #164

There is rumor that IKEA is talking WIMPLAST for molded furniture and cooler supplies to IKEA India. When I called Wimplast…answer was it is in initial phase talk and could not speculate the news unless we get confirmed order.

(SSRN) #165

How much do you think will be crude price impact on the margins? How much of this will be offset by the GST reduction from 28% to 18%?

(chets) #166

Tepid results as expected.

(Growth_without Debt) #167

WIM Plast - very little disclosure / information sharing by management about reasons on poor business performance. No con call, no presentation, no media interview. Even they are not replying email queries sent to CS. I never got reply in-spite of multiple reminders. Worst company about disclosure/sharing of information to shareholders !

(sowrabh) #168

Y don’t u call them then

(Growth_without Debt) #169

I never got satisfactory reply when I called. They ask to email our queries.
If someone from Mumbai could visit their office and get more info and share here?
Anyone has AGM updates?

(Bharat) #170

Was very much excited by the growth the company has posted in Past. It has grown at very good pace without any equity dilution and debt.Presence of Notable Mutual Funds looks good. The future outlook for this industry also looks great considering the government focus on doubling the farmers Income which may lead to more consumption as well as affordable housing. Though there are some factors which made me decide not to do investment in this company despite so much positives:

I found out that Promoter Mr. Pradeep Rathod and his Son Pankaj runs too many companies and are Director in following companies :

  1. Cello International Pvt Ltd which is into Plastic Products.
  2. Cello World Pvt Ltd which is again into Plastic Products & is incorporated on 25 July 2018.
  3. Cello Industries Pvt Ltd incorporated on 4th June 2018 which is also into Plastic Products.
  4. Sunkist Moulder Pvt Ltd which is also into Plastic Products.
  5. Cello Pens and Stationary Pvt Ltd
  6. Cello Infrastructure Limited
  7. Cello Capital Private Limited
  8. R & T Houseware Pvt Ltd

Possibilities of revenues/Business getting diverted from Listed Company to Private Companies. May be the reason behind Low Sales in last two quarters due to incorporation of 2 New Companies in 2018 which are into same lines of Business i.e Plastic Products. Though difficult to comment on exact nature of these 2 New Businesses. I believe that with so many businesses , promoter’s won’t be able to give proper allocation of time here in the listed one. Looking for some counter views !

(chets) #171

Apart from Cello molded furniture and aircoolers, all other products fall under the other companies. Hence there is a product demarcation between these companies. I am waiting for some new additions in the product lines within Wimplast and will make future decisions based on that.