As per the latest shareholding data MIT’s stake has been constant at 1.52% since last 5 quarters. On what basis are you saying that the stake is at 5.19?
Sorry typo error
Stand corrected it is 1.52 only corrected in the post also
Thanks
This is my first post regarding GAEL…Excuse my mistakes since i am an amateur…The company seems to be betting really big on the HFCS,which is touted to be a economical alternative for sugar based sweetener…But the companies in USA are seemingly returning back to sucrose based sweetener after using hfcs due to taste issues and health concerns…Though the consumption is not going to reduce in near future…Will this have a significant impact on the Company’s long term growth trajectory?
Reference : Public relations of high fructose corn syrup - Wikipedia
Disc : Looking to add some…If somebody addresses these issues…since i am new to these kind of companies.Kindly Enlighten me.
What percentage of revenue comes from exports? Anyone has any idea? Seems like govt. is trying to put a cap on exports of commodities and would like to know the impact on GAEL.
Disc: Invested
Results are out: https://www.bseindia.com/xml-data/corpfiling/AttachLive/b590bca8-eec4-4405-b51b-ed1f78a6ad81.pdf
Super results from GAEL with maize margin close to 24%
| Division | Q4FY22 | Q3FY22 | Q2FY22 | Q1FY22 | Q4FY21 |
|---|---|---|---|---|---|
| Revenue | |||||
| Cotton Yarn | 62 | 74 | 58 | 48 | 52 |
| Maize | 793 | 684 | 629 | 538 | 578 |
| Agro | 398 | 478 | 462 | 436 | 1,045 |
| All three segments | 1,254 | 1,236 | 1,236 | 1,022 | 1,675 |
| EBIT | |||||
| Cotton Yarn | -6 | 2 | 0 | -1 | 8 |
| Maize | 188 | 124 | 127 | 110 | 106 |
| Agro | 41 | 35 | 24 | 47 | 80 |
| All three segments | 223 | 161 | 151 | 157 | 194 |
| EBIT Margin | |||||
| Cotton Yarn | -9.2% | 3.0% | 0.5% | -1.2% | 15.9% |
| Maize | 23.7% | 18.2% | 20.2% | 20.4% | 18.4% |
| Agro | 10.2% | 7.2% | 5.1% | 10.8% | 7.6% |
| All three segments | 17.8% | 13.0% | 12.2% | 15.3% | 11.6% |
Anyone tracks the maize prices on a constant basis? The stock has taken quite a beating. Can anyone please explain the current prices of the maize segment?
Commodity stocks should be sold at high, opportunity lost if not done yet. Maize prices including all agri commodities will come down gradually in next 6 months, valuation was jacked up it seems.
Maize margins at 8 quarter lows:
| Division | Q1FY23 | Q4FY22 | Q3FY22 | Q2FY22 | Q1FY22 |
|---|---|---|---|---|---|
| Revenue | |||||
| Cotton Yarn | 5 | 62 | 74 | 58 | 48 |
| Maize | 792 | 793 | 684 | 629 | 538 |
| Agro | 474 | 398 | 478 | 462 | 436 |
| All three segments | 1,270 | 1,254 | 1,236 | 1,236 | 1,022 |
| EBIT | |||||
| Cotton Yarn | -4 | -6 | 2 | 0 | -1 |
| Maize | 117 | 188 | 124 | 127 | 110 |
| Agro | 51 | 41 | 35 | 24 | 47 |
| All three segments | 165 | 223 | 161 | 151 | 157 |
| EBIT Margin | |||||
| Cotton Yarn | -78.4% | -9.2% | 3.0% | 0.5% | -1.2% |
| Maize | 14.8% | 23.7% | 18.2% | 20.2% | 20.4% |
| Agro | 10.7% | 10.2% | 7.2% | 5.1% | 10.8% |
| All three segments | 13.0% | 17.8% | 13.0% | 12.2% | 15.3% |
Could not attend AGM this year - request fellow boarders who attended the meeting to post their notes.
Disclosure: Invested
The AGM recording has been posted on Youtube:
My notes from AGM as follows:
-
Expansion –
- Malda to be commissioned in Q3 with full capacity of starch and derivatives. Capacity Utilization – 50-60% in the first 3-6 months and after that 80%.
- Maize capacity to be increased to 6000 TPD making the company largest corn millers in Asia outside China
- Sorbitol projects – 100 TPD Hubli and Sitarganj – to be commissioned in fourth quarter of this year. With this expansion, GAEL would become largest producer of sorbitol in Asia ex China (Total capacity – 500 TPD).
- Construction of Wet Milling facility at Sitarganj started – will be commissioned in later part of next year (Total - 1900 TPD)
- Fermentation industry – ethanol and alcohol – company to invest 1000 Cr in this segment. While it is difficult to quantify margins for ethanol plants, expected in the range of 10-12%. First plant to be commissioned 12 months from now and second plant in 15-16 months. We have just got the permission at Hubli and subsequently in Malda and Chalisgaon. We are trying to create flexibility in this segment by not being in ethanol (which has dependency on government mandates) but also in alcohol. We see there is lot of import on fermented products in India and these are not being manufactured in India – looking for import substitution.
- Funding for expansion – currently, the plan is through internal accruals.
- Expected revenue from expansions in two years – 1500 Cr
- Reason for reduction in margins for 1QFY23 – Corn prices rose in the first quarter, fuel prices were high. We have to be prepared for margins to be in the 12 to 20% range.
- Revamp our maize plants with Renewable Energy plants.
- Margins are more stable in the derivative products.
- HFCS – we are ready with the product line. Sugar industry – prices are on lower side. Derivatives we are producing from this plant is giving us higher margins. No restriction on usage of HFCS.
- Agro processing business – more focus on B2C business. No major investments. Expect this business to do well in the near term. With exports opening up in November as international prices are increasing in soya bean and Indian prices coming down. We plan to export soya bean meal this year. We expect this business to grow to 5000 Cr and with maize business slated to grow to 5000 Cr, we are aiming to touch 10000 Cr revenue by 2025.
- India is able to compete in international markets across RM to Finished product.
- Indian maize prices would be more or less in line with international markets.
- Shipping disturbances – no major disturbances now.
- Major countries we export to – SE Asia and Africa (total 75 countries).
- Value added products – 30-35% of the total maize top line (Installed capacity of derivatives – 40-45%).
- Storage capacity – 500,000 Tonnes.
To all the analysts tracking this company, how much do you think the chinese exports is gonna hurt GAEL? Given the kind of Capex they’re planning for to compete with the chinese exports.
http://stalwartvalue.com/why-selling-strategy-is-as-important-as-buying/?s=08
reason why they sold GAEL.
The link is not working. Can you please share it again?
Thanks much.
Satyajit
Agro division turns red and Maize margins at 12.5% - hope this is cyclical low.
| Division | Q2FY23 | Q1FY23 | Q4FY22 | Q3FY22 | Q2FY22 | Q1FY22 |
|---|---|---|---|---|---|---|
| Revenue | ||||||
| Cotton Yarn | 12 | 5 | 62 | 74 | 58 | 48 |
| Maize | 789 | 792 | 793 | 684 | 629 | 538 |
| Agro | 275 | 474 | 398 | 478 | 462 | 436 |
| All three segments | 1,076 | 1,270 | 1,254 | 1,236 | 1,236 | 1,022 |
| EBIT | ||||||
| Cotton Yarn | -7 | -4 | -6 | 2 | 0 | -1 |
| Maize | 99 | 117 | 188 | 124 | 127 | 110 |
| Agro | -15 | 51 | 41 | 35 | 24 | 47 |
| All three segments | 77 | 165 | 223 | 161 | 151 | 157 |
| EBIT Margin | ||||||
| Cotton Yarn | -56.8% | -78.4% | -9.2% | 3.0% | 0.5% | -1.2% |
| Maize | 12.5% | 14.8% | 23.7% | 18.2% | 20.2% | 20.4% |
| Agro | -5.6% | 10.7% | 10.2% | 7.2% | 5.1% | 10.8% |
| All three segments | 7.1% | 13.0% | 17.8% | 13.0% | 12.2% | 15.3% |