Management have already clarified on 6th Aug that they have no exposure to Bangladesh so they won’t get affected.
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Hi,
Trying to understand to the total addressable market(TAM) for Filters and Dryers and what can be the revenue for BEW out of that. Based on their July’2023 presentation, 3 listed players(GMM, HLE and BEW) do a business of 600 Crs for filters and dryers in the organized market and couple of other manufacturers have a turnover of 200-250 Crs. In addition to this Drum Dryers have a TAM of 150-200 Crs. So roughly the entire Indian dryer market is around 1000 Crs and 800-850 Crs excluding Drum Dryers. BEW has claimed that it has 40% market share of Dryers in India. Last year their entire revenue was 120 Cr. 90% (108 Cr) was domestic revenue. Filters and Dryer combined revenue was 90%. So around 95-100 Cr was domestic revenue from Dryers and Filters. Now 40% of 800 Cr is 320 Cr. Am I missing something here because the numbers don’t add up.
Moreover I am trying to establish a revenue potential for BEW here. They are targetting a revenue of 300 Cr in FY 27. Let’s say if they grow their exports to 25% by that time then the Domestic revenues would be 225 Cr and out of that Filters and Dryers would contribute around 180-190 Cr. What would be the maximum Domestic Revenue that they can achieve out of the current product mix ?
4 Likes
Stock is in lower circuit from the time news came out about sad demise of Mr. Prakash Bhalchandra Lade, Chairman & Director of BEW Engineering Limited.
What could be future perspective of bussiness , and any hope for recovery in stock price .
The stock has fallen with HUGE VOLUMES. So pretty high chances that the institutions are out of this counter.
So price recovery MAY take a lot of time in the future.
This is only on the stock chart. I don’t know the exact ground reality of the business.
Just Tracking.
dr.vikas
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Stock suddenly disappeared from my demat stating company got de listed! Is the company shut down? Any info will be helpful
must be a glitch, there’s no announcement from the company yet & it’s still on the exchanges
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What kind of update is this.
Is this how they usually report their half yearly numbers
What about margins and net profit ?
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FY25 H2 Results - Not good. Stock hit lower circuit for the past 2 days with no buyers.
Qus #1: Profit down 36%, but EPS down 85%. Did the number of shares go up in the last 12 months?
Qus #2: I thought Raw Material cost is pass-through; isn’t it?
Qus #3: Why did the receivable days went up 2.5X (approx)?
@Pragnesh - Kindly share your views.
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be cause customers not paying timely
As per concall
1…Reason for high inventory
=High inventories which we had
kept, it is basically for a different type of a raw material. It was a nickel-based alloy raw material
=If you see the last year, it contributed mostly 40% of our turnover. But this year, we have seen a drop in those particular nickel alloy orders,
at least at the start of this year, there was a huge drop, but I think in the last 6 months, I saw a little bit pick up .
= Because of that the inventory cycles for those better raw materials are still there .
=We work into nickel alloys also and we are working into
stainless steel also. So lot of orders this year were more of stainless steel and not of nickel alloy. So stainless steel we don’t keep that much stock because it is something which is readily available in the market. And so we don’t keep that much stock of stainless-steel inventory, but
this nickel alloy is a very costly material also, it do take time also to manual those equipment’s.
So that is why we are keeping those stocks. So that was the reason the inventories are still on the higher side
2…Reason for high receivable days
=Because we had very high sales in this last quarter ,perticularly in
the last just last 2 months, I think February and March.
=So generally, for lot of customers it is around 30 days or 45 days or like that something.
But I think it will come down going ahead.
3…Why low ebidta
=We saw the drop in orders in the second half of the year, we were not able to maintain margin
= So whatever orders which are coming in which we saw that yes, we can take those orders, but the
margin drop will be there.
=So we little bit compromised on the
margins and we took those low margin orders also. So that is why that drop has come in the EBITDA .
Sorry for late reply
Disc…invested
4 Likes
Company claims to have many moats, like only manufacturer in continuous process dryer, its a design company so customizes the process for its clients etc..It also claimed that it takes advance from customers because of the moat it enjoys, yet we see high receivable days and drop in margins. Not sure if something is a miss.
Disc: Im invested at higher levels and now re-evaluating
I also listened to the conf call
Management looked under confident
And investors looked over patient and angry
There were common concerns around high inventory , ebitda margins , revenue visibility, receivables
Co used to produce 20% margins which has gone down to 13%, also management guidance continues to remain same , it is not going to improve in next half
And question on nickel based raw material
That is worth 20 crore
They will be utilising only 2cr out of that , so 18crore remains there. They even can’t sell it as they won’t get same price , they don’t want to sell it in loss.
Question on liquidity and quarterly results and conf call
They promised by March investors could see these queries answered
The only guidance they were confident is 175cr FY26 revenue , which they will achieve after stellar H1 but margins are not going to comeback sooner
They might be in need of funds as well, they might plan to raise funds further
Overall didn’t like the way management answered investor’s concern
PS: biased , invested and no transaction in last 1 month
1 Like