I also believe that, Hybrid could be the way forward for India. EV may take some time to be adopted by masses but Hybrid can act as a bridge between ICE and EV vehicles. Most of the customers may not have time to charge EV which can take up to 30 minutes to few hours.
Sumitomo Chemicals India Ltd -
A leading agrochemicals company in India
Current number of manufacturing facilities @ 05 in Maharashtra, Gujarat
Manufacturing 15 Active Ingredients, 200 + brands. Company has 15000 + direct distributors and 60 Depots. Employee strength at 1600 + over 1500 + field development officers ( contractual )
R&D team comprises of 75+ dedicated engineers, 10 + Phd’s with experience > 15 yrs
Product wise revenue break up -
Insecticides - 40 pc
Herbicides - 30 pc
Plant growth regulators - 10 pc
Fungicides - 7 pc
Metal Phosphides ( used as fumigants against insects and rodents in stored grains ) - 7 pc
Animal nutrition - 6 pc
Geography wise revenue break up -
India - 89 pc
Exports - 11 pc
Breakdown of domestic sales -
Branded - 82 pc
Bulk - 18 pc
Breakdown of export sales -
Branded - 39 pc
Bulk - 61 pc
Future capex plans -
Regular maintenance capex @ 70-75 cr / yr
Additional capex of Rs 120 cr over 2 yrs for 05 new products ( Active Ingredients / Technicals ). These AIs shall be supplied to the parent SCC, Japan. These products have a revenue potential of 200-250 cr / yr at present. These products are also reporting healthy growth rates across the world
Company is focussing on manufacture of additional off patent products for India, LATAM, Africa and Asia pacific. This will entail additional capex and the same is under consideration
Last 5 yrs -
Revenue CAGR @ 13 pc
EBITDA CAGR @ 25 pc
PAT CAGR @ 28 pc
Company enjoys great parentage. Has access to parent’s global supply chain, R&D
Q2, FY 24 highlights -
Weaker monsoon in June, Aug affected the demand for agrochemicals. El-Nino also played a spoilsport
Revenues - 903 vs 1122 cr
EBITDA - 188 vs 278 cr, Margins @ 21 vs 25 pc - margin drop primarily led by operating de-leverage. High cost inventory also had an impact
Net Profit - 144 vs 202 cr
Export sales adversely affected due to channel overstocking due aggressive dumping of generic products by Chinese players in preceding 6-9 months
Company has consumed all the high cost inventory and is now back to normal. This should help profitability in q3, q4
Working capital cycle shrunk to 70 days from 91 days in Q2 FY 23. Company has seen improved collections vs previous years thus maintaining better sale hygiene
Launched 06 new products in Q1, Q2
Company’s new launches ( in speciality segment ) in last 1-2 yrs have been received very well in the Mkt. Consumers response has been overwhelming. Its just that due to the unfavourable mkt conditions this yr, the same could not translate into better sales / financial outcomes
Due to exhaustion of high cost inventory and general drop in RM prices, margins are expected to see some recovery wef Q3
Global demand scenario for agrochemicals Industry looks better for H2 vs H1
Long term Capex guidance @ 15 pc of EBITDA / yr
Company’s animal nutrition business is in nascent stages right now. Is growth fast on a small base. Can be a significant growth driver going forward
Business de-growth in H1 has been 15 pc. 3 pc has been due to price, rest due to volumes de-growth
Don’t see high channel inventory related problems in Q3, Q4 wrt Domestic Mkts. However, the situation is still not normal in the International Mkts. Normalcy in global mkts may resume only after Q4 / Q1 FY 25
There is no problem wrt demand for agrochemicals in the export Mkts. The whole issue is about overstocking in the channel and steep cuts in the prices of the inventories held. Its across the board / across companies kind of phenomenon
Company is virtually debt free. Cash on books > 1400 cr. Looking out for small / bolt on kind of acquisitions
Company expected to spend 200-300 cr towards fresh capex at Dehej wef FY 25 , for next 2-3 yrs
Have launched a new plant growth regulator for Apple in India. Rapidly gaining market share
Avg margin losses due high cost inventory in Q1 was around 12 pc and around 5-6 pc in Q2. In Q3, the margin loss is expected to be around 1-2 pc
Disc: not holding, may buy in future, not SEBI registered
6 Likes
Supriya Lifesciences -
Q2 FY 24 and company Highlights -
Revenues - 140 vs 112 cr
EBITDA - 32 vs 29 cr ( margins @ 23 vs 25 pc )
PAT - 24 vs 17 cr ( due lower tax outgo )
Geography wise sales breakup -
Asia - 35 pc
Europe - 44 pc
LATAM - 13 pc
North America - 4 pc
Others - 4 pc
Therapy wise sales breakup -
Analgesics/Anesthetics - 50 pc
Anti Histamines - 13 pc
Vitamins - 12 pc
Anti Asthmatics - 7 pc
Anti Allergics - 6 pc
Anti Malarials - 2 pc
Company produces a Niche product basket of 38 APIs. Exports them to 85+ countries
Company is the largest Indian exporter of 3 key APIs -
Chorpeniramine Maleate - Anti Histamine, used to relieve symptoms of allergy, fever
Ketamine Hydrochloride - An Anaesthetic
Salbutamol Sulphate - Used to treat Asthma, respiratory blockages etc
15 of company’s products are backward integrated and represent 72 pc of company’s revenues
Share of top 10 customers out of the total revenues - 45 pc
Company maintains 04 different manufacturing blocks - separated therapy wise. Land already acquired for future expansion
Total reactor capacity at 600 KL. Current capacity utilisation at 70 pc
Company’s facilities are recognised by key regulators - US FDA, PMDA, ANVISA etc
Company has already filed for 15 additional APIs with USFDA. This shall take care of company’s future growth prospects
Last 5 yrs -
Revenue CAGR - 13 pc
PAT CAGR - 18 pc
Leverage @ 0.03 pc
Company’s R&D centers at Lote Parshuram, Ambernath are involved in identifying APIs that will complement company’s current product profile. These centers are also engaged in lifecycle management and backward integration of existing products
Additional work is underway to set up 5th manufacturing block at Lone Parshuram which will have the capacity of 340 KL !!! Likely to be operational by Q4, FY 24
An additional manufacturing facility of 90 KL with a new R&D facility at Ambernath shall also come up by Q4, FY 24
All this will take company’s total manufacturing capacity to > 900 KL
Q2, FY 24 Concall highlights -
Company expects to generate a topline growth of 20 pc over the base of last FY ( that would mean, sales touching the 550 cr mark by end of FY 24 )
Tax rate for full FY to be around 26 pc
Company is practically debt free
Lower margins in Q2 due change in product / geography mix ( basically greater sales in semi-regulated and emerging markets )
Aim to maintain 28-30 pc EBITDA margins for full FY 24
Sales mix -
Exports : domestic - 81:19 pc
Regulated : semi-regulated - 46:54 pc
Most of the sales growth in Q2 attributed to volume growth
Generally, H2 is better than H1 for the company
In H1 … outside the top 4 products, the next 8-9 of company’s products did see a lot of traction in semi regulated markets and hence the strong volume growth
New products where the company is focussing are in the therapy areas of - cardiovascular, anti-diabetic and anti-anxiety products
Don’t expect any incremental volume growth from China business for next 2-3 yrs
Company is co-developing 02 revolutionary products with Kalinga university - oral cancer detection kit, fast wound healing gel. Both these are novel products and have already been developed at - lab scale. Expect Supriya to take them commercial inside 3 odd yrs. These can generate significant revenues for the company ( > 500 cr ). Company intends to manufacture them and out license them to global Pharma Majors
LATAM countries are aggressively pursuing procurement from countries other than China. This is likely to act as a huge tailwind for the company Management reiterated the same on multiple occasions
Expecting to grow revenues at rates > 20 pc for next 2 yrs as well
Disc: initiated a small tracking position, not SEBI registered, biased, not a buy/sell recommendation
2 Likes
If possible, what must be your current portfolio looking like? After you have added some new members and some new tracking positions…If you could post your latest pf.
3 Likes
Current Portfolio breakdown is as follows ( It like a MF 
) -
Pharma and Healthcare - 37 pc
Cipla - 0.5 pc
Gufic Bio - 0.7 pc
Zydus Life - 0.5 pc
Dr Reddy - 1.7 pc
Eris Life - 1.9 pc
P&G Health - 0.6 pc
FDC - 0.8 pc
Glenmark Life - 0.9 pc
Glenmark Pharma - 0.9 pc
Indoco Remedies - 1.2 pc
JB Chemicals - 0.6 pc
KIMS - 4 pc
Laurus Labs - 0.7 pc
Lincoln Pharma - 1.5 pc
Mankind Pharma - 1.2 pc
Narayana Hrudalaya - 5.1 pc
Neuland - 3.6 pc
Orchid Pharma - 1 pc
Piramal Pharma - 1.6 pc
RPG Life - 1.5 pc
Syngene Intl - 1.2 pc
Shalby Ltd - 1.1 pc
Supriya Life - 1.1 pc
Sun Pharma - 0.5 pc
Wockhardt - 1.3 pc
Banks / Finance - 16 pc
Federal Bank - 1.9 pc
HDFC Bank - 1.3 pc
ICICI Bank - 2.1 pc
Kotak Bank - 3.8 pc
KVB - 0.7 pc
Axis Bank - 3.4 pc
ABSL AMC - 1 pc
Nippon AMC - 0.3 pc
UTI AMC - 0.4 pc
Arman Financial - 1 pc
Bajaj Finance - 1.3 pc
Bajaj Finserv - 1.9 pc
IIFL Finance - 0.8 pc
ICICI Sec - 0.5 pc
Ujjivan Finance - 0.6 pc
FMCG / Liquor / Tobacco - 7 pc
CCL products - 2.7 pc
Dodla Dairy - 1.5 pc
Marico - 1.1 pc
ITC - 1.2 pc
Radico Khaitan - 0.6 pc
Sula Vineyards - 1 pc
Hotels / Hospitality / Leisure - 5 pc
Benaras Hotels - 0.7 pc
EIH - 0.7 pc
EIH Associated Hotels - 1.8 pc
Royal Orchid Hotels - 0.7 pc
Taj GVK Hotels - 0.5 pc
Wonderla Holidays - 1.6 pc
Retail - 7 pc
Senco Gold - 3.5 pc
Devyani International - 0.5 pc
Aditya Vision - 2 pc
Landmark Cars - 1 pc
Infra - 3 pc
Adani Ports - 1 pc
Prince Pipes - 2.2 pc
Time Technoplast - 0.7 pc
Misc - 5 pc
Usha Martin - 1 pc
Garware Hi Tech - 0.6 pc
Carysil - 0.6 pc
Xpro - 0.8 pc
Elin Electronics - 0.3 pc
Shivalik Bimetals - 1.6 pc
Uttam Sugar - 0.4 pc
Mayur Uniquoters - 0.7 pc
Durables / Building materials - 3 pc
TTK Prestige - 1.1 pc
Somany Ceramics - 0.9 pc
Akzo Nobel - 1.2 pc
Chemicals / Agrochemicals - 6 pc
AMI Organics - 1.5 pc
Dhanuka Agri - 0.8 pc
GFL - 1.7 pc
UPL - 1.5 pc
Sumitomo - 0.5 pc
Gold - 5 pc
Auto - 3 pc
Maruti Suzuki - 1.2 pc
RACL - 1.2 pc
Steel Strip Wheels - 0.6 pc
I keep making small but frequent changes. However, the broad construct largely remains intact. Last 10 yrs CAGR has been around 22 odd pc
32 Likes
10 year CAGR 22% 
Nice to see Maruti in your auto pack!
I notice even though you have 37% allocation to Pharma, you dont have Ajanta Pharma in the list!
Any specific reasons to leave that out? 
NH has recently got approvals for medical insurance business, should do well given good governance
Amongst banks, i see you favour Kotak and Axis over HDFC amongst large caps
Chemicals, seem to be going through a downcycle currently, are you planning to increase stakes here? specially UPL
Thanks!
Hi @ranvir, thanks for sharing your portfolio and 22% CAGR over 10 years is an amazing achievement!
No offense, but the number of stocks you have in your portfolio baffles me beyond words. For me to even think of tracking so many companies, would give me sleepless nights!
For the past 12-15 months, I have been trying to reduce the holdings in my portfolio. I still hold 40 odd stocks, though the allocation is still skewed in favor of some stocks.
So it would be great to know your thoughts on holding such a huge amount of companies and still earning a handsome 22% CAGR.
Ajanta Pharma is a regret - frankly. I sold it when I should not have
Among banks - it’s just that I have bought small chunks into all leading private sector Banks. Weightage for Axis is higher due to its relatively cheaper valuation. For Kotak, its higher because I think it can grow faster due to the smaller size of its book
UPL has been sulking. I expect a recovery in the business wef Q4. I ll be monitoring its Q3 commentary closely. Once the overstocking of channel inventory and related issues are over, Agrochemicals should again do well. Should only be a matter of time
1 Like
WRT the number of stocks in my portfolio - its primarily because I have now become a full time investor an hence can track a lot more companies
Over - Diversification has its pitfalls. However, it does have a hidden ( not so appreciated ) advantage. It forces u to expand ur circle of competence
It also gives u a lot of trading opportunities because of ur expanded knowledge base. In any Mkt cycle, u are relatively better positioned to find companies undergoing a downturn and that’s when u can bet on them and make higher returns
Plus - investments and politics are the only hobbies I have. Time is not an issue. So… I keep buying whatever I like 
. However, I also keep choping / changing frequently ( except for a few core holdings )
15 Likes
Learning so much from you. Recently bought Ami Organics after doing my research and then reading your posts on here at VP.
Thank you so much for sharing your wisdom.
2 Likes
Federal Bank -
Q3 FY 24 Updates -
Deposits - 2.39 lakh cr, up 19 pc
Advances - 1.99 lakh cr, up 18 pc
Gross NPAs - 2.29 vs 2.43 pc
Net NPAs - 0.64 vs 0.73 pc
PCR @ 71 vs 69 pc
Total branches @ 1418, added 65 branches in FY 24
Cost/Income @ 51.9 vs 48.9
Yield on advances @ 9.37 vs 8.78 pc
Cost of funds @ 5.81 vs 4.71 pc
NIMs @ 3.19 vs 3.55 pc
RoA @ 1.39 vs 1.33 pc
RoE @ 14.80 vs 15.91 pc
Profit and Loss parameters ( standalone ) -
NII - 2123 vs 1957 cr, up 9 pc
Fee Income - 642 vs 543 cr, up 18 pc
Operating profit - 1437 vs 1274 pc, up 13 pc
Provisions - 431 vs 471 cr
Net Profit - 1007 vs 804 cr, up 25 pc
Segment wise growth in advances -
Retail - 65k cr, up 20 pc
Agri - 25.1 k cr, up 27 pc
Business banking - 15.97 k cr, up 18 pc
CV / CE - 2.7 k cr, up 66 pc
MFI - 2.3 k cr, up 160 pc
Commercial banking - 20.7 k cr, up 26 pc
Corporate banking - 71.9 k cr, up 14 pc
High margin products for the bank include - CV/CE, Personal, Credit Cards, Micro Fin and MSME loans - this cohort now forms 24 pc of Bank’s book vs 21 pc LY
Slippages for Q3 @ 480 cr ( within limits )
CASA + Deposits < 2 cr @ 81 pc of total deposits vs 88 pc LY
One of the large accounts worth 70 cr slipped in Q3 due factory fire at client’s factory. Likely to become standard in Q4
Bank is carrying 20 pc provisions on the restructured book. Current size of restructured book at 2200 cr
Aim to take the unsecured book to 10 pc of the total book from aprox 5 pc at present
Bank holding onto its advances growth guidance of 18-19 pc for FY 24. Aim to maintain the deposits growth rates in a similar band
Capital market investments / SIPs etc are also increasingly competing with banks for saving deposits. People are becoming more tech savvy and are managing their saving accounts more actively. Term deposits are relatively insulated
41 branches out of 75 opened LY have turned positive. Bank is very particular about location while opening a new branch
Disc: holding, biased, not SEBI registered
ICICI SECURITIES Q3 FY 24 Updates -
Revenues - 1323 vs 879 cr
EBITDA - 911 vs 549 cr
PAT - 466 vs 281 cr, up 66 pc !!!
Revenues breakup -
Retail Equity - 754 cr, up 50 pc
Distribution revenues - 174 cr, up 5 pc
Advisory services - 97 cr, up 102 pc
Institutional Equity - 90 cr, up 94 pc
Others - 206 cr, up 81 pc ( from investments and trading )
Breakdown of retail equity segment -
Cash broking - 37 pc vs 34 pc
Derivatives broking - 16 vs 20 pc ( grew by 22 pc )
Retail allied revenues - 47 vs 46 pc
MTF book @ 9900 cr vs 6300 cr YoY, MTF Mkt share @ 22 pc
Breakdown of distribution revenues -
MF distribution - 114 vs 100 cr
Life Insurance distribution - 7 vs 2 cr
Others - 53 vs 45 cr
Total wealth clients AUM - 3.2 lakh cr vs 1 lakh cr in Mar 19
Total loans disbursed via I-Sec platform @ 2170 vs 1000 cr ( YoY)
Market share -
Retail Equity - 13 pc
MTF - 22 pc
Retail Derivatives - 3.5 pc
Commodities - 7.5 pc
SGB - 9 pc
ETFs - 17 pc
SIPs - 3 pc
ICICI Bank - the parent intends to delist the company. To delist the company, it would require 66 majority vote of the minority shareholders - which is unlikely to play out - IMHO
The proposed swap ratio of 0.67 : 1 ( ICICI Bank shares : ICICI Sec shares ) is unlikely to find takers as the Mkt price of ICICI Sec is already far above the price for the proposed swap to materialise
I am betting on either the delisting not going through or ICICI BANK significantly revising the delisting offer - upwards
Disc: hold a small tracking position, not SEBI registered, biased
1 Like
Sumitomo Chemicals India Ltd -
Notes from Annual Report
SCIL is a leading manufacturer and distributor of diverse agro solutions. Also has prominent animal nutrition and environmental health as additional business units. Has a diverse portfolio of generic and speciality products in both chemicals an and biologics space. Also engaged in marketing of proprietary products of its Japanese parents. Company has a good presence in fruit and vegetable crops which are high growth areas
Offers solutions for -
Pest control
Crop protection
Rodent control
Bio - pesticides
Plant growth regulators
Fumigants
Company Infra -
Total of 05 facilities in Gujarat (04) and Maharashtra (01)
Bavnagar - Technicals and Formulations
Gajod - Metal Phosphides and Formulations
Tarapur - Technicals
Vapi - Formulations
Silvasa - Formulations
Also has 03 R&D facilities at Mumbai, Bhavnagar, Gajod
Pan - India Depots - 60
Field officers - 1500 +
200 + Brands, 700 + SKUs
15k + distributors
Exporting to 50 + countries from India
Selling in 26 Indian states
Product wise sales breakdown -
Insecticides - 43 pc
Herbicides - 24 pc
Plant growth regulators - 9 pc
Metal Phosphides ( used for fumigation ) - 8 pc
Fungicides - 9 pc
Animal Health (animal feed additive products) + Environmental Health (infectious disease control products) - 7 pc
Geography Wise revenue break up -
India - 75 pc
Africa - 6 pc
Japan - 5 pc
Asia - 2 pc
EU - 2 pc
LATAM - 9 pc
North America - 1 pc
80 pc of domestic sales are branded
30 pc of export sales are branded
India is the 4th largest producer and 3rd largest exporter of Agrochemicals in the world. India is the largest producer of Milk, Pulses and Jute. India is also the second largest producer of Wheat, Rice, Fruits, Sugarcane, Groundnut and cotton. Indian agrochemicals Industry is expected to grow at a CAGR of 8 pc from FY 23-30. In India, aprox 50 pc of area is under agriculture vs 10-25 pc as avg for most countries. If agri-productivity is improved in India, India can be a big food grain exporter vs its current share of 2.5 pc of global agri exports. At present - Indian farmers are losing about 20-25 pc of their produce to pests / disease
Avg Capex spend @ 70-75 cr/ yr. Additionally allocated Rs 120 cr to develop 5 new products in the next 2 yrs
Long term threat for the Industry - GM crops that have far greater pest resistance vs the normal / hybrid crops. India regulators have however been cautious wrt GM adoption
The China + 1 sentiment is helping the Indian Agrochemical producers to gain mkt share in export mkts. Exports from India are expected to grow at > 15 pc/yr for next 5-7 yrs. Indian companies need to invest more in Technicals manufacturing to reduce their dependence on China
Indian consumption of Agrochemicals is at 0.6 kg/hectare vs 13 kg/hectare for China and 12 kg/hectare for Japan !!!
Disc : Hold a tracking position, not SEBI registered, biased
1 Like
Thank you so much for posting your portfolio. Total 78 stocks… You are awesome…
Really respect you. And on top of that your 10 year CAGR is 22%…Thats really great. After Peter Lynch, you are the only guy , whose example can be given in real time to support diversification. Most people respect concentration and also think of concentration as the intelligent way of investing and always look down upon diversified portfolio. You are a great role model for diversified guys like me.
Your contention that diversification helps expand the circle of competence and you are better prepared when time comes…is also very good observation and correct one.
I would like to ask some of my problems to you, as you are the right person…
- Even if you are full time investor, still tracking 78 or more companies must be very difficult. How you do it and how much depth you achieve while following all these companies? Whats your tracking frequency and what all you read , observe or watch , while doing tracking?
- Many concentrated investors talk about position sizing and how important it is to achieve superior returns, but most of your stocks are at 0.5% to 1.5% and still you achieved 22% cagr, so whats the secret sauce? why position sizing didnt matter to your performance?
- were you having such high number of stocks in your portfolio from last 10 years or its a recent phenomenon?
Thanks.
3 Likes
Hi… @Mudit.Kushalvardhan … thanks for ur kind words
I am no Peter Lynch - Obviously ( lets be fair to the great man )
WRT the depth - I do listen to and make notes of Concalls of most companies ( say - of at least 70 pc of my holdings … till I start understanding / remembering company wise business nuances ). I also read their ARs ( basically the management discussions and commentaries ). Do a little bit of scuttlebutt if the company is consumer facing. I have no special training wrt accounts ( I know the basics ). Hence, I don’t go into micro-caps where I need to go into forensic details. That’s about it
Position sizing - is important - Yes. I tend to place bigger bets ( say more than 3 pc ) and allow them to grow if the business is consumer facing or is a large cap / bigger midcaps ( it gives an emotional sense of security… In B2C - u can do a scuttlebutt. In largecaps / bigger midcaps , u can be more confident about the corporate governance ). In businesses / sectors with high complexity - like Pharma ( CDMOs, Complex generics makers etc ), I tend to diversify as its impossible for me to know about all the business nuances ( beyond a point )
Increased number of stocks in my portfolio is a recent phenomenon ( last 3-4 yrs ). The more I read, the more tempted I am to buy more businesses. Plus - greater reading also makes one realise the futility of being too confident - unless one is specially talented / ready to go to greater depth
For someone who aims to do a CAGR of > 25 pc or so ( I know a lot of ppl who do it regularly ), the only option ( IMHO ) is to go in with a concentrated portfolio with greater depth of knowledge about each company
Regards
Ranvir Dehal
16 Likes
One of the portfolio threads i consistently read.
If you dont mind answering, how do you crop as whatever happens a single stock doesn’t impact portfolio to much extent. Same on adding a stock.
1 Like
Rallis India -
Notes from AR - 2022-23 -
Rallis India ( a TATA group company ) is one of the leading domestic agrochemicals company operating in the agrochemicals and seeds markets
Company has a branded domestic agrochemicals business selling herbicides, insecticides and fungicides. Company exports AIs ( technicals ) and is also engaged in contract manufacturing. Also makes - bio-fertilizers, Biopesticides, water soluble fertilisers for the domestic mkts
Seeds business - caters to field crops like paddy, maize, millets, cotton, wheat. Also caters to vegetables like - Chilli, Okara, Tomatoes, Gourds and Watermelons
Has a total of 05 manufacturing facilities - 03 in Gujarat, 02 in Maharashtra. Also has 02 R&D centers in Bengaluru
Product wise revenue break up -
Agrochemicals - 88 pc
Seeds - 12 pc
Geography wise revenue split -
Domestic - 63 pc
Exports - 37 pc
India is a major agrochemicals exporter and has been attracting global majors as they try and diversify their supply chains out of China. Rallis has been expanding its manufacturing footprint to encash such opportunities
Indian agri-exports topped 4 lakh cr in FY 22-23. With greater penetration of scientific agriculture, these figures can ramp up significantly. This is also a great opportunity for the agri-input providers
FY 23 outcomes -
Sales - 2967 vs 2604 cr
EBITDA - 221 vs 281 cr ( margins @ 7 vs 11 pc )
PAT - 92 vs 164 cr
FY23 profitability was adversely impacted by -
Impairment of intangible assets ( technical knowhow ) amounting to 31 cr wrt seeds development technology
Re-assesment of future sales potential resulted in company making provisions of Rs 53 cr wrt the slow moving seeds inventory
Company’s manufacturing capital -
14 AIs ( or technicals )
14 Formulations
77 pc capacity utilisation
Volumes sold -
9.1 k MT of herbicides
8.1 k MT of fungicides
12.6 k MT of insecticides
13.3 k MT of seeds
0.9 k MT of crop nutrients and other products
Disc : not holding, not SEBI registered
Sorry… I did not understand ur question
Can u please simplify it for me
Rallis India -
Notes from Q2 FY 24 concall -
Financial outcomes -
Sales - 832 vs 951 cr
EBITDA - 133 vs 117 cr( margins @ 16 vs 12 pc )
PAT - 82 vs 72 cr
El-Nino conditions in India, Global overstocking (high channel inventory) of agrochemicals - adversely affected both domestic and export sales. Lower topline is also attributed to softening RM prices
Channel inventory correction may still take some more time ( 3-4 months or so )
New product’s production started from Dahej multi purpose plant ( that of Difenconazole ). Another Contract manufacturing product to go live from this plant over the next few Qtrs
Q2 revenues break up -
Crop care revenues - 737 vs 923 cr ( down 20 pc ). However, domestic volumes were up 5 pc. Exports declined by 50 pc
Crop care PAT - 79 vs 89 cr
Seeds revenues - 95 vs 28 cr ( up 240 pc ). Cotton hybrid continued good sales momentum
Seeds PAT - 3 vs (-) 18 cr
Contract manufacturing business performed well in Q2. Future outlook remains good
Wrt Difenconazole - aim to sell it in SE Asia and Indian mkts. Company will be selling this to multiple customers
The next molecule ( whose production starts from Dahej MPP in Q3 ) - is being produced exclusively for a single customer ( company did not disclose the name of customer, molecule )
Company resorting to shorter purchase cycles to manage the RM price volatility. Lower/Stable crude prices are positive for the company
Company aims to reach 60:40 as Domestic : International sales in the medium / long term
Company’s seeds business has a heavy skew in favour of Kharif season. Likely to continue for a few more years till company is able to gain traction in Rabi crops
There is no demand destruction in the international markets. Its the high inventory levels that are causing all the problems
Disc: not holding, not SEBI registered
1 Like
Oops. My Bad!!! Was worded incoherently. Lack of the morning coffee
I meant to ask on what basis is a stock added or removed from the pf?
As single stock position does not have move the pf, so its contribution may or may not matter in the scheme of things.