If we substract the deferred tax, then PAT margin becomes only 2%.
1 Like
Is there any discussion or callout in Conc. calls about Pledged holdings of 14.56% ?
In Q3FY19 concall, one of the analyst questioned about the reclassification of Iris business solution private limited from promoter company to public company.
At the time of IPO, IRIS Business solution had 23,14,200 shares in their holding and they have sold their shares after March-18. (Jun-18 shows their holding as NILL, source:cogencis)
Does that mean promotors took out their money out of business through IRIS business solution?
One other company who had major holding at the time of IPO but NILL in Sep-18 holding is IDFC spiceā¦
IDFC PE & IBEF holded shares before IPO but sold in March-16ā¦
Looking at the Prabhat dairy and kwality, we should dig deeper into PMFL tooā¦
Did they reply to his questions? What explanation they gave ?
I think these are not recent developments. IDFC had started exiting after IPO. IRIS business solution reclassification happened in March 1 2018.
Having said that, I agree with the statement that there is a need to dig deeper into PMFL.
With respect to Q3 results, I have 2 points.
POSITIVE: The margins did not drop even though the milk procurement prices have increased.
Link: Parag Milk Foods Launches Ready To Eat Items - YouTube
Parag would have also faced some issue because of this.
NEGATIVE: Finance cost has gone up. Why was that the case?
I could not attend the con call, but did the management highlight about why did the finance cost go up.
Regards,
Roshan
Could not hear the voice clearly as there was some disturbanceā¦ but called to strategic investor partnerā¦ He said, they have reclassified this business from promotor to public holding as there was a promotor earlier which was common between themā¦ Now that is not the situation any moreā¦ and when I asked if they have sold their stake on which he replied they still have holdingā¦ He didnāt have the data with him so couldnāt provide the numbersā¦ But I donāt think it might be significant.
1 Like
Apart from Maharashtra, can fellow VPers help in commenting on the product placement and availability of the companyās products? Are the GO/Gowardhan products visible in the local retails and super markets? DMarts and Big Bazaars?
Hi @divan91, about the availability of the product is already discussed earlierā¦
Still, I will share my viewā¦ as far as the Maharashtra is concernedā¦ I see the Parag Milk product everywehre, specially Go Cheese and Gowardhan Gheeā¦ Gowardhan Ghee has been a strong brand hereā¦ Even I used this brand and people donāt consider here other copanies ghee safeā¦
Go products has very high visibility in the malls specially in big bazarā¦
and products are available online also like groffers and big basketā¦ and all the Kirana shops here have their productsā¦ and I feel shopkeepers prefer parag milk products as they provide discounts to Amul and have higher margins for shopkeepersā¦
1 Like
Hi @pratikchandak,
Thanks for the input. It wasnāt discussed earlier to the extent of Pan-India presence. You yourself gave info regarding Maharashtra, and one of the fellow users gave a count of Kolkata. Apart from that I did not see any information. Hence, asked. (Specifically apart from Maharashtra)
Another observation, the company time and again displays or appeals for a recognition as an FMCG company. Too much focus on what the market perceives?
4 Likes
When was this from? I have read about this last year, they want to be recognized as valued as FMCG.
This was at the end of their Mayā18 Conf call.
Then it is the same 2018 May conference callās information I was referring to.
Parag brand is owned by Pradeshik Cooperative Dairy Federation, Uttar Pradeshā¦
they have products with the brand of Paragā¦
Is it ethikal for PMFL to use the name Parag then? though, I know that PMFL doest use Parag as a brand name, can this be issue in future?
You yourselves have answered the question. Company name and brand name both are different. Hence no issues imho.
1 Like
Ashish Kacholia has reduced his stake in Parag Milk Foods Ltd.
even it is widely available in UAE Supermarkets.
1 Like