Posting two Past credit rating reports here which is available on net. My purpose is to have idea about Stolt Rail Logistic assets and business.
Company has assets that is Tanks for storing liquid at Nagpur and Daund as per my info it also has something at Pune. Customer concentration is high as only two customer were there but now in discussion or may have added new customer.
Any details about the Delhi High Court (DHC) hearing that was scheduled on Aug 17, 2021. Could not find any details on DHC portal. Thanks !!
Thanks buddy !! It is interesting to see the development of the subsidiaries. Also, it gives great confidence if management come out with details about the expected expenditure and by when they would start contributing to the revenue. Let’s track it closely.
@RajeevJ and @Pranshinv Please put some insights regarding current situation in Logistic and Terminaling biz… as the cost of Export and import are skyrocketing due to container shortage. My view is Chemical Segment may surprise us like it did last year when import were not happening due to COVID and it clocked highest profit and gave us some hope of trunaround. Also higher cost of Container shipping may have spilled to Rent to port based storage players.
Please share ur views thanks in advance
Management has transferred major Chemical business operations to WOS GBL Chemical Limited.
(It seems to be an Indirect demerger of business)
Considered and recommended for approval of the shareholders at the ensuing 34th Annual General Meeting (aCM) conducting the chemical business between the parent company - Ganesh Benzoplast Limited and its 100% subsidiary (Wholly Owned Subsidiary) GBL Chemical Limited, without transferring any immovable property owned by the company.
Under this arrangement, the purchase of raw material necessary for the manufacfure of the chemicals and the sale of finished chemical products will be handled by the WOS namely GBL Chemical Limited and the parent company (Gariesh Benzoplast Limited) will continue to carry on the manufacturing of chemicals on job work, exclusively for the WOS (GBLChemical Limited).
BR.pdf (2.0 MB)
The mgt. intention behind transferring the Chemical business to the subsidiary is to bring clarity to the investors about the value of the stand alone logistics business. The Chemical business seems to be rather volatile in terms of its numbers. The division is impacted by a number of factors, some beyond the control of the mgt. Going forward, the stand alone numbers will be bereft of the chemicals division. This seems like a prelude to the eventual de-merger of the Chemical business.
Similarly, it is with the same intent that the Steel fabrication business will hence forth be carried out in a different subsidiary. This business is again lumpy in nature and was currently being clubbed with the logistics division. The overall margins of the fabrication business were much lower than the logistics business & depending on its volumes impacted the operating margins of the logistics division making quarterly comparison difficult. Also, as the fabrication business gains traction, it makes sense to hive it off into a separate division to enable it to grow that much faster.
Hope the Co. gets its due recognition on the bourses!
They could have shown segmental PnL & Asset liability profile as companies do.
If hive off is the intention then it’s fine.
The Board of Directors of Ganesh Benzoplast Ltd, at their meeting held on September 01, 2021, has discussed the business operations and prospects of GBL Clean energy Private Limited, a newly incorporated 100% subsidiary which will deal in clean energy fuels viz. ethanol, ethyl alcohol, bioethanol, butanol, bio-alcohol, methanol and Isopropyl alcohol and other clean energy and biodiesel fuels, bio-oils and other agro-based products etc. Using ethanol and other alternative bio-fuels is highly promoted by the Government these days and various initiatives are taken by the Government for using environmentally friendly sources of fuel and by this industry, has a huge demand which can be capitalized by the company with the existing experience of the its parent company.
AR is out
Management discussion - all seems well per them,
Shareholding of promoter is Stable - includes preferential allotment, taking it up
Remuneration
Stolt acquisition performance
Morgan case continues, overhang stays.
Consol performance
Mgmt commentary positive
Summary
Positive
Negative
Disc - was invested from Q2 21, exited in Q1 22 due to opportunity cost , have tracking position, v interesting biz on demerger
Morgan securities Case Update.
As per annual report , company has paid Rs.3 cr as deposit in high court and hence there is nil contingent liability as on 31st March 2021.
Further, company filed criminal proceedings at Bombay high court against Morgan securities and the order is the favour of the company . Order attached herewith.
HC If the offence alleged against the accused is proved, then the accusedDirectors will have to be sentenced as the Company. [Read Judgment] (1).pdf (229.4 KB)
Now the case is at Supreme Court of India for further proceedings. There is high probability that the case will be in company favour looking at the grounds in which high court has passed the order.
OPPORTUNITIES AND THREATS under MDA
The main strength of the company is availability of land near to Port and location at JNPT, as a tank at JNPT commands higher premium as compared to a tank at an upcoming minor port. Hence GBL with substantial capacities at major ports would be able to capitalize on this.
Container Shortages can lead to higher rentals for LST division as well.
Any idea about this?
also look at this prospects of JNPT
Where can we find about this dispute case hearing and decision if any?
@ravish Can you please share the link to the land allotment. I gather that this allotment news is 2-3 years old, but it will help just to be sure.
@RajeevJ Sir i have shared the PDF document in post. I m posting it here again. Please check if it is old.JNPTG252ORDRPASD01062020ORDR_1020.pdf (326.4 KB)
Sir do comment on its Logistic biz, i have seen ur post on Aegis. If u have some insight about it then plz comment.
Going to be listed on NSE also
Below mentioned details pertaining to Land available at JNPT for LST Farm. Details are extracted from different sources through search engine.
| Plot no | User | Plot size (Area in Hectares) |
|---|---|---|
| 1 | Suraj Agro | 0.07 |
| 2 | Ganesh Benzoplast - Not yet official | 2.2 |
| 3 | Suraj Agro | 1.4 |
| 4 | Suraj Agro | 1.75 |
| 5 | Deepak Fertilizer | 1.5 |
| 6 | Frigorifico Allana Private Ltd | 1.8 |
| 7 | Ganesh Benzoplast Ph-I | 6 |
| 8 | Indian Molasses -Ph-I | 4 |
| 9 | Indian Molasses -Ph-II | 2.23 |
| 10 | Pay&Park Plot | 2.2 |
| 11 | Liberty Oil Mills Ltd | 0.52 |
| 12 | Bharat Shell | 0.5 |
| 13 | Ganesh Benzoplast Ph-II | 1.35 |
| 14 | Vacant Plot | 2.36 |
| 15 | Vacant plot | 2.1 |
| 16 | Pay&Park Plot | 2.2 |
| 17 | RIIL Ph-I | 4 |
| 18 | RIIL Ph-I | 5.39 |
| 19 | Indian Oil | 10 |
| 20 | HOCL | 2.2 |
| 21 | Empty Truck Parking Area | 6 |
| Total | 59.77 |
Picture of Tank
As per GST Registration details , Ganesh Benzoplast holds Plot No.2 at JNPT other than Plot No.7 and 13 which is an indicator for expansion at JNPT.
Questions for AGM on 27.09.21
Can someone please update on all the discussions that happened in the AGM yesterday…?
Thanks
@Pranshinv @ravish @RajeevJ
Didn’t attended the AGM
Will JNPT connect to Other Ports benefit to GBL as Storage tanks are going to be created in Coastal Berths ?
Result Update
Chemical Division
Sales grown from 34.4 cr in June 2021 to 41.72 cr in Sept 2021
PBIT grown from Loss (3.29) cr in June 2021 to Profit of Rs.75 Lakhs
LST Division
Fabrication (Job work ) and Infrastructure Logistics (Subsidiary) is adding to the toplines but not generating profits and eating up the Margin of LST Rentals
| LST | Mar-20 | Jun-20 | Sep-20 | Dec-20 | Mar-21 | Jun-21 | Sep-21 | Increase | YOY % |
|---|---|---|---|---|---|---|---|---|---|
| Tank Rentals | 25.71 | 24.00 | 26.15 | 29.07 | 29.86 | 39.13 | 32.66 | 6.51 | 25% |
| Fabrication | 5.82 | - | - | 10.20 | 30.00 | - | 0% | ||
| Stolt - LST | 3.23 | 7.62 | 4.83 | 7.31 | 7.31 | 100% | |||
| 31.52 | 24.00 | 26.15 | 42.50 | 67.48 | 43.95 | 39.97 | 13.82 | 53% | |
| Profit (inc Fabri) | 10.35 | 12.32 | 10.97 | 15.43 | 10.39 | 15.85 | 9.32 | (1.65) | -15% |
| Profit - Stolt | - | 0.96 | 1.95 | 0.16 | (2.69) | (1.79) | -100% | ||
| Total Profit | 10.35 | 12.32 | 10.97 | 16.39 | 12.34 | 16.01 | 6.63 | (3.44) | -31% |
| Profit %(inc Fabri) | 33% | 51% | 42% | 39% | 17% | 41% | 29% | ||
| Profit % Tank Rent | 33% | 51% | 42% | 39% | 18% | 36% | 17% |
No Explanation from Management for Exceptional item of Rs. 0.53 cr in the current quarter and decrease in depreciation cost by Rs.1.20 cr in QOQ
Company has Cash Reserves of Rs.44 cr as on 30th Sept 2021.
