Did someone attend the AGM? I came across the following note on AGM on MMB, though i cannot corroborate its correctness. My comments are in Italics.
Some of the key takeaways -
(1) Export to go up to 150 cr from 75 cr at present.
(2) Fuel and Coal Cost to be brought down by 15% by FY-end.
I am not sure how! On the contrary, coal costs are on the rise.
(3) Now three locations have best of manufacturing practices of substance i.e. at Muzaffarnagar, Bharuch and Chhindwara. All with latest pollution control norms and captive power plants.
(4) ENA plant may start production immediately after "Consent to Operate` letter is received from State Govt authorities (Excise Dept).
Refer to my other posts on MP Liquor ban - Gulshan Polyols(GPL) - Business by FMCG and Valuation by Commodity
(5) Margins of Sorbitol are under pressure due to entry of new player.
This is a big problem if this persists!
(6) Native starch plant is doing well and catering to 100 kms radius for all paper mills. Now they may extend supply up to 300 kms.
(7) Margins on Calcium Carbonate are good.
But this will remain a commodity, although many of my friends who are also dealing (manufacturing/treading) in Calcium Carbonate are rosy about the prospects of this industry. In last few months volume has really picked up.
(8) Some more satellite PCC plants may get established during current FY.
Very small contribution to the overall revenue.
(9) FY17-18 topline to cross 700 crs without contribution from ENA plant and next year well on it`s way to 1000 crs plus.
If this happens, would be amazing. But, should happen while preserving margins.
(10) Company`s new products are finding place in developed markets i.e.USA, Canada, Europe and Australia which will be scaled up in future.
(11) Capex Programme is complete for FY17-18 and Company has to reap the benefits incrementally in years to come.
That’s good as i would like to see leverage going down with improving operation cash flows. Company has raised lots of debt (around 150 cr) from 40 cr in 2014.