Has the management ever aimed for expansion in the past.Havev they been able to follow through?
Hi Fellow investors,
Kindly l look in to below queries and reply to this will help to attain better knowledge of business
1)US based co- Gates industrial corporation updated in their earnings call about “chain to belt” business opportunity is very huge and estimated addressable market is around US 8 billion $ . Whether PIX is working on any such related projects?
(2)Due to PLI scheme introduced in India , we are witnessing higher maufacturing activity and PIX provide products to many Industrial customers who inturn are doing capex, whether PIX is able to increase thier market share in India ?
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The Company is having very good export opportunities and one of the most important deciding factor will be the quality of product of PIX vis a vis its competitors.
Some body referred that the quality of PIX is lower then its main competitors like Gates and Fenner.
Experts can advise on the quality of product.
Disclosure: Not invested but tracking.
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Ratings Update
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Pix FY23 Q3 Results:
Higher employee cost is cutting into margins.
I think that may be due to expansion of various facilities. However, in coming time, we should see more revenue by virtue of such expansions.
Look forward to other views here.
@RajeevJ How do you read the results and current state of Pix Transmission business?
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One important metric to track in Pix will be capacity expansion going up from 75k belts to 150k belts per day. 1) Not sure if there is enough market or open orders for this kind of doubling of capacity and 2) when will such increased capacity starts contributing t the top line.
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@django
Q3 numbers were somewhat disappointing, though not totally unexpected with the current slowdown in the developed world. The good news is that the expansion relating to capacity increase is complete as mentioned in the update given by the Co., attached below. Any pickup in demand, either domestic or exports, will see an immediate surge in the numbers. Earlier, the plant was working three shifts & the Co. was not in a position to even increase supplies. Just one or two large orders from the US, & things will be back on track once again.
As mentioned in the post above, employee cost is the only area that is seeing growth & traction! The mgt. should have been more sensitive to the minority shareholders & any increase in Director remuneration should only be taken after the expected growth has kicked in & not in anticipation of future growth. The Pix mgt. is smart enough to know that how they treat the minority shareholders will determine how the markets treat the Co. in terms of its market cap!
I guess all will be forgiven & forgotten if the Co. can do 600 -650 crs in sales in 23-24.
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@RajeevJ @django Is there any conference call for Pix, or any mangement interviews/videos highlighting their current issues and future prospects.
Pix is moving towards stage4 as per technicals. Results was also not good. Could anyone give some input on fundamentals of the company
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Pix Debt as on September 30, 2022 was about 99 crs. As per the latest filing with the exchanges, the debt amount is shown to be 37 crs. This would mean substantial reduction in debt. This would mean lower interest cost & more importantly improve the return ratios further.
I also understand that March exports are amongst the highest in the last year or so. If the trend were to continue in the coming months, then it would mean good tidings for the company going forward, more so with the increased plant capacity already in place.
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Tried doing some digital scuttlebutt but found only mixed reviews. Not sure if the product is good or bad. Any opinions anyone?
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It’s belt quality not appropriate for continuous operation machine , in our company we trial pix belt but quality is not up up to mark
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Good numbers QoQ and YoY
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Which belt were u using before this? Fenner or some imported brands?
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Mostly Continental belts
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I am a reseller stockist of Fenner and ecodrive. Used to deal in pix 10 years back.
Continental is way too costly compared to exodrive. Whats the proce difference between continental and pix?
There is a market for all types of belts so am asking this.
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As I have been writing regularly on this thread, I felt that I should mention here that I have sold my holdings in the current rally. Nothing fundamentally wrong with the Co. & it should continue to do well in the long term. It’s the immediate short term that was a cause of concern for me. For Pix to perform well, exports have to flourish, something that is not happening & unlikely to happen in the immediate future with the world slowing down due to multiple reasons. The Co.'s expansion plans were made keeping in mind the export potential & not necessarily the domestic market.
I was also sitting on a decent quantity & the current spurt with volumes helped me to exit. Besides, its always a good feeling to book profits & get back to work n redeploy!!
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Hi,
Please share AGM notes if anyone has attended.
Thanks
Notes from Pix transmission AGM (Jul’23)
Pix is amongst top 7 companies globally in belts. More than 80 countries presence
Q- Revenue from Russia is growing - what is driving this and whether sustainable
A- due to sanctions, shifting to Pix
Sustainable - hard to go to some other brand
Once a brand is out of market then it’s a task to bring it back
For next couple of years, it will be a growing market
Q- Key developments in USA ?
A- Office set up in USA deferred due to weak economic scenario
Personal presence is needed for visibility
Negotiations on for new clients in USA
Other Notes:
Some EVs use belt
3.5k belt in EV bikes - currently imported from USA and
In 6-8 months should be able to add an oem in EV space
In next 3-4 years, will try to give belts for high end cycles since they also use belts instead of chains - new market will open up
Supplying belts to large MNCs for washing machines
Price hikes won’t be rolled back taken last year inspite of RM cooling off
EV belt is for big players only, small players cannot get into it
Couplings are bought out now, small business now. Providing it as a solution since past 1.5 years
Current plant can support 800-900 cr revenues
For next 2-3 years capacity is there
Faced initial teething challenges during expansion since overseas engineers didn’t come for trial run and installation - pix engineers had to do it online
Didn’t lose customer due to this
Current Capacity utilisation- 60%
Automation efforts being implemented - Employee reduction, consistency and efficiency to be increased
Will focus on taking market share to grow faster than industry
Disc - Invested
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