Ranvir's Portfolio

Q&A: Questions & Answers Portfolio Q&A
854

Q1 concall summary iro Royal Orchid Hotels -

Revenues - 73 vs 63 cr , up 16 pc
EBITDA - 23 vs 24 cr
NP - 10 vs 11 cr

ARR - Rs 5220 vs Rs 4880 YoY

Decrease in EBITDA and NP due substantial increase in employee salaries to control attrition ( due salary cuts during COVID )

Also spent higher amounts on upkeep and maintenance of hotels which wasn’t done during the COVID period

Cost of borrowings was also up YoY

Well on track to cross > 100 hotels this yr (by Oct). Currently operating 94 hotels. 13 hotels added in Q1- mostly management contracts

Avg occupancy of newly opened hotels ( mostly on management contracts ) is lower. Takes time to build up occupancies. Occupancies of older hotels is > 80 pc !!! ( Industry leading )

Repair and Maint costs should moderate by Q3

Management is aiming for an ambitious tgt of Rs 400 cr topline for FY 24. Even if they miss it by 8-10 pc, it would be a great outcome …IMHO

Occupancies of hotels added even 2-3 yrs back is also > 75 pc !!!

Aim to maintain a staff/room ratio of 1.3 on an overall basis

Focussing on increasing Banquet revenues … showing an encouraging trend. Conference business is also back

Hope to reach room count of 8000 by FY25 end

Intend to expand the company’s resorts in Goa and Bangaluru … both are as such doing quite well

Current room count at 5600. Aim to reach 6500 rooms by end FY24

All this expansion will be via management contracts of existing properties and some revenue share models. Don’t intend to set up own Greenfield hotels

Generally, hotel industry does 40:60 revenue split in H1:H2

July has been soft due heavy rains in Goa/HP

Aim to do 120cr EBITDA in FY 24 … if that happens (even if they do about 110 cr vs 82 cr LY) …it ll be a happy situation for the shareholders …IMHO

Income from management fees ( that they get by managing hotels ) LY was 24 cr

Disc: hold a tracking position

1 Like
855

Surya Roshni Q1 concall highlights -

Financial outcomes (YoY) -

Sales - 1875 vs 1839 cr
EBITDA - 116 vs 70 cr (margins at 6 vs 4 pc)
PAT - 59 vs 22 cr

EBITDA, PAT growth due better volumes, better product mix

Reduced debt by 171 cr in Q1 !!!
Debt/Equity ratio at 0.12 pc now

Intend to be debt free by next FY - big positive

FMEG segment performance -

Sales- 374 vs 335 cr
EBITDA - 33 vs 22 cr
PBT - 26 vs 14 cr

Professional lighting grew 27 pc. B2C lighting saw modest growth

Increased advertisements, marketing spends in FMEG business

Expecting further margin improvement in margins in FMEG business going fwd

Steel Pipes and Strips segment-

Sales- 1503 vs 1504 cr (due fall in RM costs)
EBITDA- 83 vs 50 cr
EBITDA/MT- 4388 vs 3103 !!!
PBT - 55 vs 16 cr

Volumes grew 20pc !!!
Domestic, export volumes up 27, 7 pc

Expect H2 to be much stronger due execution of infra projects after the monsoons are over

Confident to grow this segment by 10-12 pc for full FY 24

Steel Pipes export business was also adversely impacted by cyclones in both West and East India in Q1

EBITDA/Ton expectations for full FY to be > LY(which was 6500 LY) with high probability

Q2 EBITDA / Ton expected to be substantially better

LY’s EBITDA/Ton for Q4 was abnormally high due higher steel prices

Aiming to grow lighting division by 20 pc this FY

Board has approved a stock split from FV of Rs10 to Rs5

Company is long term debt free. Current debt is only for Working capital requirements

Surya Lighting is weak in Tier-1,2 cities vs peers. Obtains only 17-18pc of lighting revenues from these cities vs Industry avg of 35pc

Taking concrete actions to correct this situation

Surya’s mkt share in exports is increasing continuously

Disc: hold a tracking position

3 Likes
856

Somany Ceramics Q1 concall summary -

Q1 volume growth at 8 pc. Capacity utilisation- lowest (except COVID days) due lower demand, higher inventory and maint shutdowns

Capacity utilisation now increasing. This plus cost controls,lower gas prices should lead to margin expansion

Current capacities -

Tiles-75 million sq mtrs ( including JVs and outsourcing tie ups )
Sanitaryware-7.8 lakh pcs
Bath fittings-13 lakh pcs

Capacity utilisation in Q1 -

Tiles-70 pc
Sanitaryware-58 pc
Faucets-70 pc

Tiles sales mix-

Own Mfg- 37pc
JVs-35pc
Outsourcing-29pc

Financial outcomes( consolidated ) -

Sales- 584 vs 555 cr
EBITDA- 51 vs 45 cr ( margin at 8.7 vs 8.1 pc )
PAT- 15 vs 21 cr ( due exceptional item of 7 cr )

Total Tiles sold- 15.41 vs 14.25 msm
Bathware sale contribution - 58 vs 54 cr

Net debt down from 308 to 190 cr, qoq !!!

Capacity utilisation now at 100 pc. Things r looking much much better now

Gas prices have come off wef Q1. Now with increased capacity utilisation, EBITDA margins should improve signifigantly

Sanitaryware has also picked up momentum in Q2

Added 50 dealers, 25 showrooms in Q1

Demand in Q2 has been much better. Should pick up further in Q3

Gas prices have further corrected from Q1 levels, down another 7-8 pc

Large format tiles to start production in Q3. No major fresh capex planned in next 2 yrs

Company’s new capacity will come up in Nepal next yr

Share of GVT (value added) tiles now at 35 pc vs 32 pc in Q4

North India is Somany’s biggest mkt. Have seen better sales in July despite heavy rains

Q1 is generally weak as labour goes back home in June due heat

75 pc of company’s sales come from retail segment

Rest is a combination of - Govt business, Private builders and corporates buying directly

Aim to end the FY with 10-10.5 pc EBITDA margins (in Q1, margins were 8.7 pc)

Looking to clock > 300 cr revenues from bath ware business this yr and > 500 cr in next 3 yrs

It has 3-4 pc higher margins than tiles business

Disc: hold a tracking position, looking to add more as the future looks bright

1 Like
857

EIH Q1 concall highlights -

Sales- 498 vs 394 cr

EBITDA- 155 vs 97 cr ( margins at 31 vs 25 pc )

PAT- 106 vs 66 cr

Q1 occupancy rates at 70 pc. Corporate segment doing well

F&B revenues - 169 vs 163 cr

Flight catering and airport lounge revenues - 87 vs 45 cr

Net Cash position at 540 cr

Current corporate structure -

International Hotels- 07 ( All Oberoi Hotels, 05 owned, 02 managed )
Domestic Managed hotels by EIH- 06
Domestic Oberoi hotels- 06
Domestic Trident hotels- 03
EIH associated Hotels- 02 Oberoi + 07 Trident - all managed

Expansion plans for FY 24 - 02 hotels - 01 Vilas Hotel in MP ( 20 rooms ), 01 Rajgarh Palace also in MP ( 65 rooms )

LY - ROCE was 35 pc for owned Hotels, that’s where company’s focus continues to be

Currently do not have a beach front Hotel in India

As per capita income rises, will open the same. Also have a Site avlb with the company in Goa

Most of company’s overseas hotels are on the beachfront

Company gets a lot of its revenues from Intl travellers which often happens in Q3,Q4

Corporate ARRs are up 10 pc yoy

Have opened a new standalone restaurant and club. Initial response for both has been very strong

Company to soon share its detailed growth plan blueprint till 2030

Unlikely to take Debt/Equity beyond 0.2 to fund all expansions

ARRs in India for luxury hotels are a fraction vs international rates. As affluence in India grows, ARRs can only head higher. This shall also reduce seasonality as dependence on foreign tourists comes down

Company believes, the upcycle in Hospitality industry can last > 4-5 Yrs

One example-Oberoi New Delhi operates at ARR of around $200-250/night. Any comparable hotel in the west is not avlb at ARR< $ 1500-1800/night. Hence the headroom for ARRs in Indian luxury space is humungous

Imagine what will happen to profitability if ARR crosses $ 300/night !!!

Even Intl Oberoi hotels are averaging >$ 500 ARR/night

F&B revenues in Q1 were flattish as Oberoi Nariman Point drives a lot of banquet sales & most of its banquet rooms were under renovation. Will open in Nov 23

Moto GP Noida, World Cup, G-20 meet should add to demand this yr

Flight catering is shaping up well, growth prospects are strong

Company believes,there is enough space for growth in ultra luxury segment. Hence, not planning to venture into premium space by launching a new brand etc

Plus there is lesser competition here vs plain 5 star hotels

Disc: holding both EIH, EIH associated hotels. Biased

1 Like
858

Carysil Ltd Q1 concall highlights -

Sales - 142 vs 171 cr
EBITDA - 26 vs 34 cr ( @ 18 pc vs 20 pc )
PAT - 12 vs 19 cr

SAP and ERP implementation impacted sales in Q1 to the tune of 15 cr

Order book has improved - should get reflected in sales wef Q2

Domestic dealer network at 3200 now

Expanded Steel sinks capacity to 1.8L units/yr & started production in July

Domestic, Intl sales- 32,110 cr

Acquired addnl land in Bhavnagar for expansion- costed 9 cr

Q1-volumes-
Quartz , Steel Sinks, Kitchen Appliance - 1.04L,0.21L, .09L

Domestic, Intl sales - 22pc, 78 pc

Product wise -
Quartz sink - 46 pc
Steel sink - 11 pc
Appliances - 13 pc
Solid surface Sinks - 30 pc

Quartz sinks capacity at 10L units/yr

Kitchen appliance portfolio -

Wine Chillers, Built in Owens, Cooktops, Dishwashers, Chimneys

Domestic appliance manufacturing capacity to be ready in H2. At present, company is trading

Management has indicated several breakthroughs in new customer acquisition, hence guiding for 80 pc capacity utilisation in Quartz Sink segment for residual of FY 24 vs 60 pc in Q1 !!!

Loss of sales in Q1 should spill over to Q2

From Q2 onwards, company should be able to clock a sales run rate of 180-190 cr/ Qtr

Expecting a quartz sink exports of 330-350 cr this yr. It was 65 cr in Q1. Expect Qtly run rate for next 3 Qtrs to be around 90 cr

Destocking in developed mkts has almost ended

Current inventory position is slighly lower than normal

Expect good revival in sales in domestic mkt too wef Q2

Seeing good traction in Pune, Mumbai

Looking to increase its presence in B2C space both in domestic & overseas mkts

Aim to achieve 30 pc sales from B2C channel in 4-5 yrs

Also expecting some margin improvement with volume expansion in the coming qtrs

Management still confident of hitting Rs 1000 cr topline by FY25

Have opened aprox 20 Carysil Showrooms across India. Aiming to double this yr

All showrooms are franchise owned

Disc: holding. Biased

2 Likes
859

Gujarat Pipavav Q1 concall highlights-
Operations suspended for 16 days due Cyclone Biparjoy
Volume for Q1-
Container load(TEUs)-1.99 lakh, up 7 pc
Dry Bulk(MT)-6.7 lakh, down 28 pc
Liquid(MT)-2.6 lakh, up 29 pc
RORO(units)-14k, up 118 pc(roll on/off ships-import/export of cars)

Financial outcomes -

Revenues- 215 vs 207 cr
EBITDA- 106 vs 112 cr (margins @ 49 vs 54 pc)
PAT- 68 vs 59 cr (due much higher other income)

Added container capacity by-32000 TEUs/yr (added 3 new services)

On RORO-have started handling VLGCs (very large gas containers) wef July

Not taken any tariff hike this yr, nor planing any in Q2

New LPG terminal to go live in May 25

On volumes growth-continued softness

Due power outages in Q1, costs of operations were higher by 7 cr in Q1 which are likely to reverse in Q2. also expect topline to be better in Q2

VLGCs should add to liquid volumes in Q2

Under normal circumstances, Volume growth of Ports should mirror the nominal GDP growth

WRT electronics, Pipavav is more into exports vs imports - bodes well for the company given the Govt’s push

RORO, Liquid cargo growth guidance for this yr at 50 pc, 25 pc YoY

Setting up of Dedicated Freight corridors does help the company wrt uptick in Railway business volumes

Capex for setting up new LPG terminal - 750 cr

Liquid capacity will go upto 5.2 from 3.2 million Tons post this capex, should add > 120 cr ( roughly ) to the topline

Expecting payments of >30 cr for damages caused by cyclone in 2021 form insurance company in this FY

Company recouping some Mkt share this FY vs previous 2 yrs

Disc : added a tracking position

Impressed by the high margin nature of business, liberal dividend payouts, company’s cash rich status and descent growth prospects

3 Likes
860

Aarti Pharmalabs Q1 concall highlights -

Sales - 458 vs 457 cr
EBITDA - 85 vs 86 cr ( margins flat at 19 pc )
PAT - 47 vs 52 cr (due higher depreciation and tax rate)

Manufacturing footprint -
Dombivali - Unit-1, APIs and Intermediates

Vapi - Unit-2, Api, intermediates, custom synthesis

Tarapur -
Unit 3- Xanthine derivatives
Unit 4- APIs
Unit-5 - Xanthine unit

Atali - New unit under construction

Vapi- R&D center

Sales breakup-
Xanthine -56 pc
API + Intermediates - 37 pc
CMO/CDMO - 7 pc

Total commercialised APIs - 50
Total APIs under development - 10
US DMF approvals - 40
CEP approvals - 20 - for sale to EU

Company is backward integrated with intermediates for most APIs

53 pc of exports to regulated mkts of US,Europe and Japan

Domestic:Export sales - 46:54

By end of FY 24, company to make one of the main RM used to make Xanthine in-house, currently imported from China

Expanded Xanthine capacity to 5kTons/ yr from 4kTons/yr in Q1

Greenfield project at Atali expected to go live in H2 FY 25

Likely to grow EBITDA by > 15 pc in FY 24

Company has done a capex of > 300 cr in last 2 yrs. Ramp up of these new facilities to take about 2 yrs from now. Asset turns to be between 1.5-2.0

API+Intermediate, CMO business has higher margins than Xanthine. Xanthine prices have been under pressure this yr

03 of company’s plants are US FDA approved

Previous 2-3 yrs were exceptionally good as Xanthine prices were high. Now they ve corrected. Hence the company has moderated its EBITDA growth guidance to 15-17 pc

Medium term EBITDA margin guidance of 20+/- 2 pc

Capex required for Atali Unit aprox 350 cr

Plus the company is likely to do another 150 cr brownfield capex in next 12-18 months

In CDMO space, 12 products are in pipeline ( phase- ii and iii ). Have commercialised 16 products till date. Margins here are better

In APIs, top 10 products contribute 60 pc of sales

Xanthine derivatives have applications in APIs, food and cosmetics. Biggest competition is from China. Company is by far the largest producer in India and caters to 80 pc of Indian demand

Hope that CMO/CDMO business scales up to 10 pc of business this yr

Business focus towards CMO/CDMO has increased in last 3-4 yrs. Atali expansion should further help scale up here

The 16 products commercialised by the company are in the scale up phase - can be a growth driver

More focussed on lifestyle disease APIs that are low volume higher margins. Focus continues to be the regulated mkts of EU, US

Atali capex will largely be used for intermediates & CMO/CDMO of intermediates

Most of big cola companies are customers of Aarti for finished Xanthine

Xanthine and derivates - 60 pc are exported, rest sold in India

Disc : not holding. Planing to take up a tracking position

2 Likes
861

Gravita India Q1 concall highlights -

Historical performance -

5 yr revenue CAGR - 22 pc
5 yr PAT CAGR - 35 pc
EBITDA margins - consistent in 9-10 pc range

Q1 financial outcomes -

Sales- 703 vs 580 cr, up 21 pc. Volume growth - 18 pc
EBITDA - 80 vs 64 cr
PAT - 52 vs 42 cr

Volume data for Q1 -

Lead - 29.2 vs 24.7 k MT
Aluminium - 5.3 vs 3.3 k MT
Plastic - 2.7 vs 3.3 k MT

EBITDA per MT -

Lead - 20,958 vs 21,726
Aluminium - 12,823 vs 18,113
Plastic - 10,217 vs 12,512

FY 23 revenues breakup-63:37 - Domestic:Overseas
PAT-49:51 - Domestic:Overseas

Current Capacity (31 Mar)- 233 k MT ( Lead + Aluminium + Plastic + Rubber )

Projected Capacity by End FY 26 - 433 k MT ( almost a doubling )

Capex plan till FY26 ( Existing + New Verticals ) -

FY 24 - 159 + 45 cr
FY 25 - 148 + 100 cr
FY 26 - 110 + 105 cr

Total - aprox 600 cr

Company’s key strengths - deep rooted procurement networks, diversified customer network , OEM approvals

Existing production facilities in -
India - 05
Srilanka
Ghana
Senegal
Mozambique
Tanzania
Togo
Dominican Republic ( near Carribean Islands )

Existing - procurement network -
Yards, Touch points -
Asia - 5, 1000 +
Africa - 26, 450 +
Europe - Nil, 15 +
Americas - Nil, 75 +

Total scap collection - FY 23 - 205 k MT

Customers -
Asia - 305
Africa - 26
Europe - 18
Americas - 27

Current contribution from Value added products -43 pc

Projected to grow to 50 pc by FY26

Most of the lead scrap used by Gravita comes from - Telecom, UPS, automobile, data centre batteries

Current capacity (on 24 Jul) stands at 278 k MT vs 233 k MT on 31 Mar 23 -up by 22pc!!

Slight drop in profitability in Q1 vs Q4 FY23 due - lower end Aluminium prices, Disruption caused by Cyclone Biparjoy which affected Lead business’s volume growth ( lost 1.5 k MT volumes )

Segment wise capacity expansion by 2026 -

Lead- 225 k MT to 300 k MT

Aluminium-30 k MT to 48 K MT
Plastic-22 k MT to 60 k MT

New vertical-Rubber’s capacity expansion will also take place, not quantified by the company

PAT growth guidance for next 4 yrs-35 pc CAGR!!

No further dilution planned by promoters

Unlikely to go for QIP in near future

Aim to keep Debt/Equity below 0.75 throughout the next 2-3 yrs period while the Capex is on

Dominican Rebulic - company to set up plastic and paper recycling there

Company’s top 4 clients for battery collection include - TCS, Infosys, Accenture, Wipro

Disc : intend to pick up a tracking position

1 Like
862

Arman Financial Services Q1 concall updates -

Historical performance -

2016-2023 growth CAGR -

AUM - 41 pc
PAT - 42 pc

Present RoE- 36.5 !!
RoA - 7.8 !!

Positive ALM

Present in -

10 states
343 branches
139 districts

Current customers - 6.8 lakh

Present breakup of loan book -

Microfinance - 82 pc
MSME loans - 13 pc
2-wheeler loans - 3 pc
Individual business loans - 2 pc

AUM’s geographical breakup -

Gujarat - 28 pc
UP - 24 pc
MP - 15 pc
Rajasthan - 12 pc
Maharashtra - 11 pc
Others - 10 pc

Microfinance in Q1 -

AUM - 1800 cr
Yield - 24.4 pc
NIM - 12.0 pc
RoA- 7.6
GNPA - 2.4 pc
NNPA - 0.03 pc
RoE - 38 pc
Avg ticket size - 45 k

MSME loans in Q1 -

AUM - 276 cr
Yield - 36.1 pc
GNPA - 2.4 pc
NNPA - 0.4 pc
Avg ticket size - 75k

2W loans in Q1 -

AUM - 66 cr
Yield - 28.4 pc
GNPAs -4.5 pc
NNPAs- 1.3 pc
Avg ticket size - 67k

Q1 financial outcomes -

AUM - 2143 cr ( up 54 pc )
PAT - 40 cr ( up 154 pc )
GNPAs - 2.5 pc down 115 bps yoy
NNPAs - 0.14 pc down 20 bps yoy

Avg loan tenure in micro finance is 2 yrs

Company intends to go deeper in the current geographies it is present in. Also evaluating opportunities to enter new states. Company does a lot of brain storming/data analytics before entering a new state

Company has over last 1-2 yrs entered - Bihar, Jharkhand, Haryana, Telangana

Bihar performing really well both wrt growth and asset quality

Haryana - results are mixed wrt growth, Asset quality has been stable

Jharkhand, Telangana have been the more recent ones

Aim to keep growing AUM at 35 pc CAGR for next 3-4 yrs

ESOP programs of the company are avlb to all employees - right from field level to senior management !!!

It varies from 40 shares to 1000 shares. Avg is about 300 shares

Current provisions held @ 3.5 pc of the book

Avg cost of borrowing for the company is around 12.5 pc

Disc: holding a tracking position. Intend to build on if the business keeps performing

863

Mayur Uniquoters Q1 concall highlights -

Financial outcomes (YoY)-

Sales -201 vs 220 cr
EBITDA -39 vs 35 cr (margins @ 20 vs 17 pc)
PAT -31 vs 27 cr

Company has been selected by global OEMs and has received confirmed new orders for next 3 yrs for exports and domestic mkts

Export mkts were subdued in Q1. Expect them to pick up from Q2 onwards. Company expects automotive exports of 225 cr in FY 24 vs 157 cr LY !!

Company expects auto export sales to reach 550-600 cr by FY 26 - based on the order pipeline that the company has received

For FY 25, expect auto exports to be around 400 cr

Most orders are from - BMW, Mercedes

Auto exports to really pick up from Q3 FY 23

Have appointed over 300 dealers to sell their fabric in domestic mkt. Response is encouraging. Sales are improving MoM

Since its a B2C business, margins are much better

Footwear sales are a little soft at the moment

2-3 MNCs like Zara visited company’s polyurethane facility. They are liking company’s product quality. Hopeful of converting them into orders by next FY

Expect a topline growth of 10-12 pc this yr & then a 18-20 CAGR for the next 3 yrs on the topline. Plus the margins are also likely to expand

Q1 exports stood at 66 cr. Out of this,46 cr were for auto-OEMs

Segment wise revenue breakup-
20 cr- Export- general
24 cr- Export- OEMs

44 cr - Domestic - OEMs
26 cr - Replacement sales
48 cr - Footwear Industry
6 cr - Furnishings

Domestic auto OEM demand continues to be healthy

Disc: holding from 480 levels, looking to add more

My take - Business momentum should pick up latest by Q3

3 Likes
864

Wonderla Holidays Q1 concall highlights-

Current Portfolio-

03 theme parks-Bangaluru, Kochi, Chennai

01 Resort

Portfolio wise performance in Q1 -

Bengaluru park -

Sale-80 vs 60 cr, up 34 pc
Footfalls-4.7 vs 4.2 lakh, up 11 pc
Avg Ticket Price-Rs 1323 vs 1075 cr, up 23 pc

Non ticket revenue-Rs 396 vs 350, up 13 pc
APRU-Rs 1720 vs 1420, up 21 pc

This park has 40 land slides and 21 wet slides

Bangaluru Resort-

3 Star property, 84 rooms, suitable for wedding receptions, parties etc

Revenues-5.3 vs 4.8 cr
Occupancy-69 vs 80 pc
ARR-Rs 5888 vs 4891

Kochi park -

Revenue - 47 vs 39 cr, up 20 pc
Footfalls - 3.2 vs 3.5 cr, down 8 pc
Avg Ticket price - Rs 1145 vs 882, up 30 pc
Avg non ticket price - Rs 326 vs 244, up 34 pc
ARPU - Rs 1471 vs 1126, up 31 pc

Hyderabad park -

Revenue - 51 vs 46 cr
Footfalls - 3.1 vs 3.4 lakh

Avg ticket price- Rs 1224 vs 986, up 24 pc
Avg non ticket price-Rs 418 vs 338 , up 24 pc
ARPU- Rs 1642 vs 1324, up 24 pc

Consol results-

Sales- 190 vs 152 cr, up 25 pc
EBITDA- 122 vs 94 cr, up 30 pc
PAT- 84 vs 64 cr, up 31 pc

Company running 15 restraunts across 3 parks

4th park to come up next FY in Orrisa

Recieved regulatory clearance for Chennai theme park. Construction to commence soon

Have signed MoUs with UP, Punjab Govts for construction of new theme parks. Expect some announcement wrt expansion this FY

Company remains debt free

Fall in footfalls (YoY) in Kochi, Hyd- due pent up demand post COVID in Q1 LY. Bengaluru remains far more bouyant because of greater per capita income and population density in the region

Hence, not worried about footfall de-growth in Hyd, Kochi

Refurbishment/Expansion to take place at the resort in Bengaluru. Adding 2 new Bars, 40 rooms, 01 convention centre

Looking to build new resort in Hyd-work may start sometime next FY

Growth in Non-ticketing revenues due various initiatives taken by company wrt its F&B offerings

Confident of achieving 5 pc footfall growth this FY at the company level

Aim to go for lease models for further expansion into newer states. Size of the park to be commensurate to the size of opportunity - eg - a smaller park in Indore vs larger in Ahmedabad

Spending 70 cr on maint capex and adding 5-6 new attractions to all three parks this yr

Should be able to complete Chennai park construction by June 25

Chennai park to have at least 30-40 pc different slides / experiences vs the Bengaluru / Kochi park

Aim to achieve 15-20 pc revenue growth for full FY

Company’s equipment is either European or made in India. No equipment is Chinese

About half of the land is un-utilised in the existing 3 parks - have huge headroom for expansion if demand dictates so

Disc: holding, biased

865

Crompton Greaves consumer electricals Q1 updates -

Consol Q1 outcomes -

Sales-1877 vs 1863 cr
EBITDA-186 vs 220 cr (margins@10 vs 12 pc)
PAT-122 vs 126 cr (due higher other Income)

Segment wise revenues -

ECD - 1429 vs 1347 cr, up 6 pc
Lighting - 229 vs 262 cr, down 13 pc

Butterfly - 219 vs 254 cr, down 14 pc

Segment wise EBIT and margins -

ECD - 182 vs 229 cr ( margins @ 12.7 pc down 430 bps )
Lighting - 27 vs 23 cr ( margins @ 11.9 pc, up 310 bps )
Butterfly - 16 vs 22 cr ( margins @ 7.3 pc, down 130 bps )

ECD -
Fans grew 5 pc

Pumps were flat due unseasonal rains
Geysers , Coolers, Mixer Grinders grew - 11, 10 & 50 pc
Built in kitchen appliances ( new business )- revenues stood at 11 cr

New B2C structure created for lighting business

Launched outdoor range of LED lighting

Have created a new grounds up portfolio of BLDC fans instead of just converting the older models into BLDC ones. Company feels - this segment deserves independent attention

Total sales ( of fans ) coming from premium division now at 28 pc. This division saw strong growth

A&P sales stood at 4.5 pc of sales in Q1 vs 3 pc LY … a big jump

Company’s range of BLDC fans is the widest in the Industry

In the process of merging Butterfly and Crompton go to mkt synergies. This ll massively improve Butterfly’s reach in North+West India

This should happen in next few Qtrs

Have expanded Butterfly’s product portfolio in cooking, food processing and cookware range

Demand in Apr, May was subdued. Picked up in June

Spending heavily in A&P across the organisation, specially behind butterfly brands

Currently have 54 Crompton Brand stores for sale of built in Kitchen appliances. Chimneys and Hobs showing good momentum

Company maintaining negative working capital cycle hand has been generating robust cash flows

Cash and cash equivalents stood at 783 cr vs 657 cr QoQ

Plan to enter 2-3 new segments in next 3-4 yrs. Did not disclose the name of the segments for competitive reasons

Company has improved/corrected the sub-optimal gross margins in Butterfly, Lighting business in Q1. Looking to take some price hikes in Fans in Q2 / Q3 to completely offset the costs of BEE transition

Premiumization in fans should also help drive gross margins. Current share of high value / premium fans in late 20s vs late teens a couple of years ago

Also looking to sell more ceiling lighting products vs battens/bulbs due better pricing there

Similarly, company is working hard to premiumize the Butterfly’s portfolio as well

Disc : holding, biased

1 Like
866

Angel One Q1 concall highlights -

Unique SIPs registered with Angel One in Q1, Q2,Q3,Q4 FY 23 and Q1 FY24-

0.5lakh, .48 lakh, .57 lakh, 1.08 lakh & 4.3 Lakh !!
Company in No2 in no of SIPs in the mkt
Total Demat accounts in India Today-8.6 pc of population vs 1.7 pc in FY12 !!

NSE ADTO and Trade volumes going up every single year without exception since 2007. No exceptions despite multiple Mkt corrections !!!

Q1 financial outcomes(YoY)-

Revenues-811 vs 684 cr, up 18 pc
Breakdown-
Broking-557 vs 470cr
Interest income-144 vs 121cr
Other-108 vs 92cr

EBDAT - 305 vs 249 cr

PAT - 220 vs 181 cr

Client funding book size - 1139 vs 1594 cr

Avg per client exposure - 1.08 vs 0.97 lakh YoY

Angel One’s incremental client addition in last 4 FYs ( FY 20-23 ) - 5 lakh, 23 lakh, 51 lakh, 46 lakh. Another 13 lakh added in Q1

Mkt share in new client addition - 21 pc !!!

Angel One’s Mkt share in total NSE active client base - 14.3 pc ( as on June 23 ) vs 8.8 pc in Mar 21 - a staggering 545 bps Jump !!!

Segment wise Mkt share(ADTO) -

F&O - 24.6 pc
Cash Mkt - 13.4 pc
Commodity - 56.9 pc !!!

In the process of rolling out Loan Products distribution business from their super app

Angel’s total client base stands at >1.5 cr
Q1 annualised RoE @ 39 pc

Share of revenue Jun 24 vs Jun 22 vs No of years of client acquisition-

29 pc vs 55 pc @ < 1 yr
29 pc vs 18 pc @ 1-2 yrs

22 pc vs 8 pc @ 2-3 yrs
12 pc vs 9 pc @ 3-5 yrs
9 pc vs 10 pc @ > 5 yrs

This data is encouraging as more mature clients are now contributing to far higher share of revenues

Company has a large base of affiliate partners @ > 21k

Budgeted cost for ESOP this yr is 50-55 cr

In the process of obtaining final approval from SEBI for AMC business

Angel is now No 3 in no of NSE active clients. Angel’s Mkt share is around 14 pc vs Mkt leader (Zerodha) @ around 20 pc

Current Qtly revenues from distribution of Financial products is aprox 8 cr

Intend to grow this multi-fold in the next few yrs

In discussion with top banks, NBFCs for distribution of Personal loans. Company to also assist them in providing them customer data using AI models to better access the customer’s risk profile

Company in process of looking out for a new CEO. May take some time to find the right candidate

Company to go live to support BSE’s Bankex and Sensex derivatives by start of Q3

Disc: hold a tracking position. May add more on dips / better results

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867

Usha Martin Q1 concall highlights-

Offers wide range of-

Specialty Wire ropes
High Quality Wires
LRPC wires
Bespoke end fitments, accessories & related services

Consol Q1 outcomes-

Sales- 814 vs 760 cr
EBITDA- 146 vs 117 cr ( margins @ 17.9 vs 15.5 pc )
PAT- 101 vs 82 cr

Segmental revenues -

Wire ropes - 553 vs 481 cr, up 15 pc yoy
Wire and Strands - 65 vs 86 cr, down 24 pc yoy
LRPC - 116 vs 148 cr, down 22 pc yoy

Segment wise sales contribution -

Wire Ropes - 68 vs 67 pc
Wire and Strand - 8 vs 10 pc
LRPC - 14 vs 15 pc

Increase in rope sale in line with company’s strategy to focus on value added products

Volume wise data -

Wire Ropes - 23k vs 21k MT
Wire and Strands - 7k vs 9k MT
LRPC - 14k vs 17k MT

Geographical sales breakdown -

India - 44 pc
Europe - 24 pc
America - 7 pc

Middle East & Africa - 11 pc
Asia Pacific - 14 pc

In Q1, within Wire Ropes the share of speciality ropes ( for cranes, elevators, oil & offshore, mining, fishing ) increased from 65 to 71 pc

Revenues increased in Q1 despite YoY fall in RMs due better mix of value added sales

Exports in Q1 were up 13 pc

Nett Debt down to 99 cr vs 185 in Mar 23 despite 68 cr of Capex spend in Q1 - due very healthy cash flow generation

EBITDA / Ton @ Rs 32230 vs 26470 in FY 23 vs 19625 in FY 22 vs 15880 in FY 21

Committed to maintain > 18 pc EBITDA margins

Intend to improve the margins further as the product mix improves

As wins new international customers, margins can improve significantly. Current guidance is conservative

New wire ropes Capex to be concluded by Q3. Fresh volumes to start flowing in from Q4

Full ramp up to happen in 3-4 Qtrs

LRPC realisations are under pressure due capacity additions from Jindal Group, Tata Steel. Company now focussing on plasticated and galvanised LRPC products to differentiate and to add value

Hope to be Debt free by end of FY 24

Ranchi capex of aprox 350 cr to be completed by Q3. Has the potential to add 800 cr of annual sales at full capacity. Also, the products breakup from this new capex will favour the Higher Margin Speciality business

Chinese are not significant players in the value added segments

Guiding for 13-15 pc volume growth this yr and next yr despite volume contraction in Q1 !!!

Globally, Wire Ropes are growing at aprox 5 pc / yr. Company is gaining mkt share in international Mkts due better pricing vs Intl players and increased efforts towards customer service

Company’s global Mkt share is 5 pc. Intend to take it to 7-8 pc in medium term

Also looking to add value in the Wire segments for both domestic and export Mkts. This is also a huge mkt and can offer a lot of growth opportunities

In 2-3 yrs, EBITDA margins can be upwards of 20 pc due continuous focus on value additions

Disc : holding, biased

868

Landmark cars Q1 concall highlights -

Sales- 694 vs 800 cr
EBITDA- 44 vs 51 cr ( margins constant @ 6.4 pc )
PAT- 7.3 vs 18 cr

Indian auto Industry grew by 10 pc YoY despite a high base

The company’s OEMs - VW, Honda, Mercedes, Renault, MG did not participate in Q1’s growth

Second Qtr onwards, sales may be pickup due -

1.Launch of Mercedes GLC which has received bookings (>1500 cars) amounting to aprox 1200 cr

2.Launch of Honda Elevate which is seeing very good customer response. Honda sales de-grew 37 pc in Q1 due discontinuation of Jazz, WRV

  1. Start of MG Motors operations in Q2 at Bhopal and Indore
  2. Have started receiving BYD cars which were stuck up for over 2 months
  3. Launch of Jeep’s new 4x2 Diesel version

After sales business continues to be strong

Have started a new business of selling pre owned cars

Avg selling price of new cars at 19.5 vs 15.6 LY

Avg cost of servicing/car is also up 9 pc vs LY

Gross margins @ 15 pc (sales + service + sale of pre owned cars)

Aim to hit 100 cr sales from the sale of pre owned cars this yr

Management believes, they can make money here from sale of 1st car onwards as no new infra / manpower is being employed here

In active conversation with MG Motors for allotment of new locations. Awaiting clarity on selection of their Indian partner before going ahead

Jeep India’s management has changed and they have a renewed focus on India. Jeep’s numbers likely to recover to 800-900 units/month and with Jeep’s avg selling price, that’s a good business

Renault going to launch new models in about 16-18 months

Renault providing financial support to Landmark in the interim

VW opening low cost/small outlets in Gujarat through Landmark to drive incremental sales

Once the company is able to crack the pre-owned car sales business in a profitable way, they can easily & quickly scale up

Currently, BYD is allowed to import only 2500 cars / year in CKD format. Even this is a profitable business as the Margins here are high. Company may go ahead with an Indian partner to expand its manufacturing footprint in India

Company is expecting to get advance bookings for 700-800 Elevate car units. That should amount to Aprox 100 cr sales (rough calculation)

Company’s share in various OEM’s India sales -

Mercedes- 16 pc
Honda- 6 pc
Jeep- 26 pc
VW- 10 pc
Renault- 5 pc

New partnerships - BYD, MG, Ashok Leyland

Disc: hold a tracking position

1 Like
869

Sula Vineyards Q1 concall -

Sales-118 vs 92 cr (up 17 pc)

Operating profit-30 vs 25 cr (up 20 pc, margins 28 vs 27 pc)

PAT-14 vs 11 cr, up 27 pc

Growth in Own brands @ 30 pc vs muted growth for imoprted wines

Elite and Premium wines grew even more @ 35 pc (30 pc in Volumes)

Wine tourism revenues grew 12 pc. Have added 27 rooms to their resort at Nahsik taking the total room count to 100

Likely to continue to see high occupancy and room rates

Sula’s Vineyards continue to be the most visited vineyards in India

Q1’s volume growth @ 15 pc

Volume growth in popular and economy segment was muted at 2.5 pc vs 30 pc for elite and premium segment

Company gets VAT refunds in the state of Maharashtra. Company is yet to receive Rs 120 cr from Maharashtra Govt

Q1 has been a fourth straight Qtr of strong double digit volume growth for Sula and they r guiding for similar growth for rest of the year

Company is hopeful of receiving the 120 odd cr from Maharashtra Govt within the course of this CY

LY, company did 30 pc EBITDA margins for full FY. This yr, company intends to do 27-28 pc margins but with greater vol growth

Capex for FY 24 to be around 60 cr towards expanding production capacity. Capex for expanding rooms and infra for wine tourism is done by local partners

Sula leases the infra ( extra rooms etc ) and keeps it asset light

Among own wines in Q1, 74 pc revenues came from elite and premium and rest from economy and popular. LY, the contribution from elite and premium was 69 pc

Company’s three biggest Mkts are - Maharashtra, Karnataka and Telangana - in that order

Disc : hold a tracking position

870

Dodla Dairy Q1 FY 24 concall highlights -

Revenues-823 vs 717 cr
Gross Profit-195 vs 166 cr (@ 23.7 vs 23.3 pc)
EBITDA-60 vs 45 cr ( @ 7.3 vs 6.3 pc )
PAT-35 vs 25 cr ( @ 4.2 vs 3.5 pc)

Sale of value added products (VAP) @ 258 cr, up 13 pc YoY. VAP sales now at 32 pc of total

LY, sales from VAP was 27 pc. VAP sales peak in Q1

Industry benefiting from upcoming flush season. Likely to peak in Sep-Oct

Avg milk production in Q1-15.9 lakh Lit/day, up 7.5 pc

Avg milk sales in Q1-11.1 lakh Lit/day, up 6.2 pc

Avg curd sales in Q1-439 Tons/day, up 3.1 pc

Current number of Dodla retail parlours - 596

87 pc of milk directly produced from farmers

Company has - 123 chilling centers, 15 processing plants, 01 Feed plant ( through its subsidiary - Orgafeed )

Company has global presence in - Uganda, Kenya

Company sells in 13 states in India

There were price cuts of 4-5 pc blended for cow + buffalo milk in Q1. However, company refrained from procuring at lowest possible prices so as to not hurt farmers and for better long term sustainability of the business - a great step - IMHO

Due to upcoming flush season, GMs may go up a little more in Q2

Company’s working capital cycle is extremely healthy vs peers. Company maintains strict discipline here, even at the cost of compromising on some additional business

Company is able to hold onto Mkt share in Karnataka despite aggression from Nandini. Dodla pays same to farmer as Nandini (despite govt giving subsidies to farmer to sell to Nandini) but sells at slightly higher price due better product Quality and better internal efficiencies

Avg procurement/realisation prices for milk for Q1 at - Rs 39.6/Rs 55.6

In Africa, Q1 revenues were 60 cr and EBITDA was 14 pc (very high margins here)

Orgafeed capacity expanded, to go live in August

Srikrishna Milks (subsidiary)-did EBITDA of 5 cr @ 8.7 pc margins in Q1

Aim to increase share of VAP by 1-1.5 pc / yr

VAP sales breakup for Q1 -

Curd- 187 cr
Ghee Butter- 9 cr
Ice cream- 13 cr
Paneer+Sweets- 14 cr
Lassi- 6 cr
Buttermilk- 10 cr

Confident of maintaining Q1 levels of EBITDA margins in FY 24. May improve a little due flush season

Aim to grow the revenue by 15 pc in FY 24

Differential between avg selling price/ lit between Nandini vs Dodla is Rs 8-9 in Dodla’s favour !!!

Current Cash balance at - 467 cr at consolidated level

India capacity utilisation at 65-66 pc currently

Disc : holding

1 Like
871

RACL Q1, FY 24 concall highlights -

Company Infra -

02 manufacturing locations
03 warehouses in Europe
01 corporate office at Noida

Products -

Transmission gears and shafts, sub assemblies, precision machined parts, Chassis parts, Industrial gears

Product Application areas -

2,3 & 4 wheelers, CVs, Agri equipment, Off road vehicles, Industrial gears

Q1 outcomes -

Sales - 89 vs 80 cr
EBITDA - 22 vs 18 cr
PAT - 11 vs 8 cr

70:30 pc sales breakup - Exports:Domestic sales

Q1 is generally the weakest Qtr-due holidays in Europe

Company’s GMs are industry leading as the complexity of products and value addition by RACL are high

Company is already supplying to most premium bikes in India. Company is the sole supplier to TVS X- electric scooter

Also going to be the sole supplier to a new super bike to be launched in India by next month

In medium term, company to maintain EBITDA margins between 22-26 pc band

Even the Yokes and Suspension parts produced by the company are very high on complexity and value add

At present none of the Yokes are used in Motorcycles in India. These are very high end Yokes being used in European 2 wheelers

3 yrs back, company’s share of revenues from 4 wheelers was zero. This yr, company hopes to do 10 pc revenues from 4 wheelers

Company is only supplying to high end OEMs like BMW, Porsche, Mercedes, Aston Martin etc

Value of company’s transmission parts / TVS X electric vehicle is aprox Rs 10000

Post Covid, Company’s order wins have increased in Europe due China + 1 strategy being followed by OEMs

Intend to keep growing the company at > 20 pc CAGR for the foreseeable future

Aim to hit topline of 470-500 cr in FY 24

Company likely to win one big project in a new segment. Details to be known by next Qtr

Capex projection for FY-24 to 27 at 250 cr

Min asset turn expected on this capex is 1.3-1.4 with an ultimate goal of hitting asset turn of 2

Disc: holding

1 Like
872

AMI Organics Q1 FY 24 concall -

Sales - 142 cr, up 9 pc
EBITDA - 25 cr, up 10 pc
PAT - 16 cr, up 12 pc

Gross margins at 44.8 vs 48.8 pc due change in product mix

Export:Domestic sales @ 37:63

Fermion contract - validation batches sent. Commercial production to begin in Q4

Electrolyte additives samples approved by 06 customers. In advanced stages of contract negotiation with a couple of customers

Revenue split -
Pharma Intermediates:Speciality chems - 84:16

Company produces advanced Pharma intermediates across 17 therapeutic areas

Has developed 185+ products with 90 pc plus products with chronic therapy focus. Majority products backward integrated to basic chemical level. Has 50-90 pc global mkt share in key molecules

Last 4 yrs sales CAGR @ 31 pc in Pharma intermediates

190 cr capex lined up for Pharma intermediates

Expect to continue to grow sales at historical rates

Speciality Chemicals sales up from 7.4 cr to 99 cr in last 4 yrs

Ami has successfully developed a core electrolyte additive for cells used in energy storage

First global company outside China to develop this. Samples approved by 06 customers

Spec Chem business to grow at rates > Pharma intermediates growth rates

Existing Spec Chem business supplies KSMs to Agrochem and fine chemicals industry

In Q1, pharma intermediates, spec Chems grew by 5pc and 25 pc respectively. This when Chinese manufacturers have been dumping all kinds of intermediates, Spec Chems and causing huge pricing pressures

Q1 is historically the weakest Qtr for the company

Did not disclose the capex/preparations required for supply of electrolyte additives citing confidentiality

Fermion orders are for 10 yrs. Supplies to begin in Q4. Full impact to be seen in FY25. Did not disclose the revenue potential from this again citing confidentiality

Fermion contract is for supply of Pharma intermediates for their on patent API

Electrolyte additives business likely to be much bigger than initially anticipated by the company

Q1 numbers do not include the numbers of Baba Finechem (where the company acquired 55 pc stake in Q1)

Company expects the current electrolyte capacity to be sold out in FY 24

Pharma Intermediate EBITDA margins in Q1 were around 20 pc. Should move up for the rest of the year

The margin profile of Electrolyte business to be similar or better than company avg

To understand the true potential of the company, this video link posted below may be really helpful. Also explains why the company trades at such expensive valuations

Disc: holding

1 Like
873

KIMS Q1 FY 24 concall highlights -

Revenues - 606 vs 496 cr, up 21 pc
EBITDA - 157 vs 137 cr ( @ 26 vs 28 pc )
PAT - 87 vs 79 cr

ARPOB @ 31.7k vs 30.2k
Occupancy @ 70.4 vs 65.5 pc
IP volume @ 46k vs 40k
OP volume @ 382k vs 325k

Telangana, Andhra cluster EBITDA @ 31 pc, 22 pc

Sunshine, Nagpur EBITDA @ 23pc, 6 pc

Cluster wise no of beds, revenues -

Telangana - 1200 beds, 289 cr
AP - 1914, 165 cr
Sunshine hospitals ( 02 facilities )- 527, 39 cr
Nagpur - 334, 61 cr

Payor mix -

Cash - 52 pc
Insurance - 27 pc
Corporate - 14 pc
Govt - 7 pc

Cash and Cash equivalents @ 178 cr

Debt/Equity @ 0.22

There is ample opportunity for growth and margin improvement in AP cluster and Sunshine hospitals

In AP & Telangana, KIMS can add new specialities to existing hospitals for added growth

Company adding a number of new beds in both AP and Telangana

Hope to see significant improvement in margins at Nagpur facility in 2-3 Qtrs

There is a QoQ dip in margins in AP, Telangana clusters mainly due to the expansions undertaken at various hospitals

Also, Q1 is generally the weakest Qtr in terms of margins

Two new hospitals in Bengaluru with a combined bed capacity of 750 should be operational by Q2 next yr. Total outlay - 650 cr

Thane hospital to go live by Q1 end next FY

Nahsik should be operational by end Q4 FY 24

Adding Onco blocks and Mother and Child departments in AP across 05 of their 07 hospitals

Basically, by end of next FY - company to add 1500-1700 beds !!!

WRT the new beds being added in AP & Telangana, 40 pc of incremental revenues likely to flow to EBITDA

Expect Sunshine hospitals to clock better revenues, margins from Q4 onwards

Thane to be a 300 bed hospital

Expect ARPOB in FY 24 to be better by 3-5 pc vs FY 23

In FY 25, company is operationalising a lot of new bed capacity which ll be EBITDA negative to start with

A lot of that would be offset by ramp up at Nagpur hospital and Sunshine hospitals

Expect Sunshine margins to be in line with KIMS Telangana cluster by sometime next yr

Already seeing revenue ramp up in Nagpur hospital. Likely to accelerate going fwd

Disc: holding

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