I would suggest watching videos such as these : Great articles to read on the web - #1012 by sahil_vi to better understand these things. There is commitment from government side for many years of both PLI and subsidies. These are time-dependent and the time duration is announced up-front.
The concern about substitution is true for most companies (probably 95% of them). This does not mean they are not good investments. This is just a risk the investor needs to be aware about and evaluate with regard to the specific company. My 2 cents.
In 2009 we diversified into in the domain of turn-key contracting business (âEPCâ) an acronym for Engineering, Procurement & Construction to popularise Polycab Make EHV,HV & LV Cables. The EPC business operation combines latest mechanization in underground cabling erection trends, techniques, methods & best practices, which includes the design, engineering, supply, execution and commissioning of entire turn-key power distribution, transmission & rural electrification projects inclusive of specialized UG cabling work.
Thanks Sahil! Iâll read up about government initiatives on protecting domestic industries.
Agreed there is Chinese threat for most of the companies and that the investor should be wary of it.
That seems like some serious amount of trading in mutual funds for a company whose balance sheet size of only around 6k crore. I also did not see any MF Holdings reported in the statement.
Thanks for bringing this to our notice. This has to be investigated. The amount is huge -29,398Cr. I missed it somehow. One possibility is Company is churning its cash in liquid funds, though amount seems to be huge but in reality, it is hard churning of small amounts. Pl write a mail to the company asking for clarification, I have sent from my side. Will update if i get any reply
Looks like some issue to me also. According to the CF statements there should be a loss of ~ 221 Mn in MF transaction. But other income shows 179 Mn gain.
Also i cant comprehend why this transaction was done. A company putting in 3.5x times its revenues in MF , doesnât seem appropriate.
I think company is trying to leverage liquid funds aggressively. That would mean the company is doing daily transaction worth Rs.160 crores per day in liquid funds on average in buying and selling. For a company of this size I am assuming that should be ok. In terms of cash flows it would look big since each transaction would be recorded. I would give them the benefit of doubt here.
Thanks. Mr market might discount the activity until trading gains are coming. Perhaps, also get enthused if gains are continuous in nature; maybe some mutual fund experts are at helm of surpluses. Next few quarters should be watched keenly for repeat of such activity. Humans have innate desire to extrapolate profitable trends.
FMEG products production in Own factory with focus on quality no outsourcing
5yrs done since FMEG started
Price competitive amongst rivals like bajaj/havels suggested by dealer
Design are good at first glance (will update after getting samples)
Project Discount less in FMEG due to handling charges and space required for storage etc offered 15% against wires & cables usual 25-30%
CEO focus on quality thus sometimes loose getting gov projects due to tender model of lowest bid, cause of small price difference eg against Crompton
So many family members with average credentials on the Board is questionable practice & not healthy in terms of governance. Their contributions to strategic thinking & business development with necessary drive is doubtful. This is all the more crucial now that the product profile is moving more towards FMEG with intense competition.Recently Mr. Ramakrishna, the CEO has left the Co.
Interest for Polycab is rather interest & financial charges like BG,L/c,etc Some other member raised Q. that borrowings & interest amt.'s do no gel.In addition to Retention amount,Project receivables also include Performance Guarantee amounts which is gen.10% of the project value & deducted by the Project owner at the beginning of the Contracts but is released when a BG of equivalent amount & tenure is submitted.
EPC (Engg. Project & Construction) Contracts,While executing the contract,major equipments which the Co. does not manufacture have to be bought out from market. Sub contracting comes into play because if the Co. does everything then its admin cost & overheads will be high & also may be time consuming ,getting it done through specialised contractors will be cheaper & faster. Hope the Q. is clear.
