Your judgement on gold and silver was excellent. Kudos
2 Likes
Elecon Engineering -
Q2 FY 26 results and concall highlights -
Revenues - 578 vs 508 cr, up 13 pc
Gross margins @ 43 vs 45 pc
EBITDA - 126 vs 112 cr, up 12 pc ( margins @ 20.5 vs 21.8 pc )
PAT - 88 vs 88 cr
Segmental results -
Gears Division -
Revenues - 441 vs 405 cr, up 9 pc
EBIT - 85 vs 87 cr ( due higher employee costs, accelerated depreciation on recently capitalised asset )
Fresh Order Intake - 497 vs 432 cr, up 15 pc
Open orders @ 771 vs 627 cr, up 23 pc
Seeing steady demand coming from domestic power, steel and cement industries. Enquiry levels remain healthy across domestic and international markets
The overseas business did see some slowdown in orders mainly because of volatile geo-political situation in the ME
Material Handling division -
Revenues - 137 vs 103 cr, up 33 pc
EBIT - 35 vs 26 cr, up 35 pc ( due better product mix, greater share of sales from after mkt business )
Fresh Order Intake - 191 vs 104 cr, up 84 pc
Open orders @ 455 vs 339, up 34 pc
Aim to incline their share of exports to 50 pc of company’s revenues by FY 30 ( working on improving their relationships with global OEMs )
Good inflow of fresh orders in both divisions is a key indicator of business’s healthy future
Company’s exports business reported flattish revenues across both its business segments. Order executions were delayed in key markets due geo-political disruptions. Exports are expected to pick up meaningfully wef H2. Even the domestic demand is getting stronger
Better revenue visibility in H2 ( due strong order inflows ) should help in better absorption of fixed costs and expansion of EBITDA margins
Cash on books @ 600 cr - allowing them flexibility to navigate macro uncertainties, pursuing inorganic opportunities
Capex budget for next 3 yrs ( till FY 28 ) is estimated @ 450 cr
Committed to achieving an annual revenue of 2650 cr with an annualised EBITDA margin of 24 pc ( that would mean an absolute EBITDA of Rs 636 cr vs LY’s EBITDA of 543 cr - a growth of 17 pc )
Company shall incrementally focussing on LatAm, Russia, ME and EU for their exports business
Gear boxes for marine applications can be a high growth area in future due Govt’s focus on Naval modernisation and ship building in general
Sugar sector is also seeing good signs of recovery. Should see good business in this sector in FY 27 - as suggested by fresh order flows ( FY 26 should continue to remain tepid )
Company’s export margins have always been better than their domestic margins - should remain like so in future as well
Disc: holding, biased, not SEBI registered, inclined to add more, not a buy / sell recommendation, posted for educational purposes
3 Likes
Fed Bank Fin Sevices -
Q2 FY 26 results and concall highlights -
AUM - 16.14 vs 14.22 k cr, up 13.5 pc
Disbursements - 5.2 vs 3.8 k cr, up 36 pc
Total income - 536 vs 519 cr
Interest expenses - 213 vs 214 cr
NII - 293 vs 264 cr, up 10 pc
Operating expenses - 183 vs 178 cr, up 5 pc
Operating profits - 139 vs 126 cr, up 11 pc
Credit cost - 31 vs 40 cr, down 27 pc ( very encouraging )
PAT - 80 vs 65 cr, up 24 pc
No of branches @ 699 vs 665
Cost to income @ 57 vs 58.5 pc
RoA @ 2.4 vs 2.1 pc
RoE @ 12 vs 11 pc
Gross Stage NPAs @ 1.9 vs 1.9 pc
Net NPAs @ 1.3 vs 1.5 pc
Stage 2 assets @ 3.3 vs 3.7 pc
CRAR @ 21.6 vs 21.4 pc
Avg cost of borrowing @ 8.4 vs 9 pc
Avg yeilds @ 17 vs 17.3 pc
Spreads @ 8.4 vs 9 pc
Breakup of loan book -
Gold loans @ 6731 cr, up 36 pc YoY ( @ 42 pc of loan book ). LTV @ 61.7 pc
LAPs + Housing loans @ 8796 cr, up 22 pc YoY ( @ 55 pc of loan book ). Out of this, small ticket LAP + HLs AUM stand @ 3706 cr and medium ticket LAP AUM stands @ 5090 cr
Company has stopped disbursement of business loans wef Q1 FY 26. Outstanding business stand @ 3 pc of total loan book
Breakup of disbursements -
Gold loans @ 4445 vs 2610 cr, up 70 pc
LAPs + HLs @ 760 vs 1200 cr, down 57 pc ( 206 cr were disbursed in small ticket HLs + LAPs while 554 cr were disbursed in medium ticket LAPs )
Combined disbursements @ 5205 cr, up 36 pc YoY
Breakup of company’s branches -
TN - 93
Karnataka - 93
AP - 52
Telangana - 44
Maharashtra - 127
Gujarat - 104
MP - 20
Rajasthan - 36
UP - 25
Haryana - 27
NCR - 48
Punjab - 13
Uttarakhand - 7
Chd - 1
543 branches are for standalone gold loan business. 205 branches are for standalone LAP + Housing Loan business. 49 branches handle both LAPs and Housing Loans + Gold Loans
Gold loans / branch @ 11.1 vs 10.7 tons
LTVs @ 61.7
Active gold loan customers @ 2.6 lakh
Added 31 new branches in Q2. Have lined up increased branch openings to strengthen their Gold Loans business
Have sold 79 cr of GNPAs ( in the small ticket LP + HL segment ) in Q2 - sold this to an ARC for an upfront payment of 33 cr
Company had assigned 770 cr of unsecured loans in Q1. Company further assigned 115 cr of unsecured loans in Q2. The aim is to exit the unsecured MSME lending space
If the company had not discontinued + sold off its unsecured loans, AUM growth in Q2 would have been 28 pc vs reported growth of 13.5 pc
Company expects the gold loans business to further accelerate in Q3 and Q4
Company is guiding for a credit cost of 1 pc on an annualised basis for the foreseeable future. LY, the credit cost was at 1.8 pc
Company shall start to focus on reducing its cost / income in a meaningful way wef FY 27. This yr, company shall continue to focus on capacity building ie adding more branches in H2. Additionally, company is also investing a lot in increasing the head count of their small ticket LAP business’s recovery team - this should help them improve the asset quality
Seeing strong business traction in Oct
Should open another 90-100 Gold loan branches in H2
Once the company sees a further ( and definitive ) reduction in stress in the mkt in the small ticket LAP segment, they ll start to again accelerate lending in this segment. That may be another 1-2 Qtrs away
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
3 Likes
RPG Lifesciences -
Q2 FY 26 results and concall highlights -
Revenues - 181 vs 172 cr, up 5 pc
EBITDA - 43 vs 48 cr, down 9 pc ( margins @ 24 vs 27.8 pc )
PAT - 28 vs 31 cr, down 10 pc
H1 performance -
Revenues - 350 vs 337 cr, up 4 pc
EBITDA - 84 vs 89 cr, down 6 pc
PAT - 55 vs 58 cr, down 6 pc
Segmental results ( H1 ) -
Domestic formulations - 246 vs 216 cr , up 14 pc. Continue to deliver market beating growth. New products contribution improving consistently on account of launches in chronic and speciality segments. Sales force productivity now @ > 6.5 lakh ( vs 6.1 lakh YoY )
International formulations - 67 vs 65 cr, up 2 pc
APIs - 34 vs 52 cr, down 34 pc. Adverse impact on API sales is due to a fire incident in one of their manufacturing blocks
Company’s manufacturing facilities -
F1 @ Ankleshwar - caters to domestic and emerging mkts. Produces multiple dosage forms like tablets, liquids and powders
F2 @ Ankleshwar - caters to regulated markets. Produces oral solids. Currently - WHO, EUGMP compliant. Modernisation and capacity expansion are underway
API facility @ Navi Mumbai - WHO, TGA Australia compliant. Modernisation and capacity expansion are underway
In Q2, Company’s domestic formulations business grew by 17.2 pc vs an IPM growth of 7.7 pc - significant achievement ( growing @ 2.2 times the IPM growth rate ). Company’s rank in domestic mkt has improved from 62 to 56 in H1 FY 26
Naprosyn ( pain management brand ) grew 16 pc in H1 - on track to become a 100 cr brand. Company’s immunosuppressants portfolio grew by 12 pc in H1 ( led by brands like - Azoran and Mofetyl )
Have launched a number of monoclonal antibodies over the last few years ( like Adalimumab, Bevacizumab, Rituximab, Trastuzumab ). This portfolio grew by 21 pc in H1. This is a high margins, high value segment for the company
Another company’s brand - Norpace ( used to treat abnormal heart rhythm ) grew 62 pc in H1
International formulations business grew by 7 pc in Q2
The damage caused by API plant’s fire incidents have now been fully resolved - H2 should be much better for the API business
Cash on books @ 223 cr ( despite spending continuously on plant modernisation and capacity expansions over the last few years )
In H1, company’s gross margins have fallen by 4 pc due - non availability / lesser availability of captive APIs + sales loss due to the fire related incident
Breakup of Q2 growth in Domestic Formulations - Volume - 7.8 pc, Price - 3 pc, New products - 5.9 pc
Breakup of H2 growth in Domestic Formulations - Volume - 6.8 pc, Price - 2.6 pc, New products -4 pc
Breakup of domestic business - Chronic - 20 pc, Acute - 80 pc
Actively looking at inorganic opportunities ( both brands and small companies ) to accelerate growth in the domestic business
Looking to enter nice molecules / combinations that are currently not avlb in the country + difficult to make molecules
Company is working hard at mainstreaming Naproxen by educating doctors on benefits of Naproxen vs Ibuprofen / Diclofenac in the NSAID space
Norpace is another brand ( used to treat irregular heart beat ) where the company is literally the only big player in the mkt. However, the awareness about this particular disease is low and its company’s responsibility to grow this category by spreading awareness and educating doctors / patients
Have got an approval in Canada to move Naprosyn ( Naproxen ) from a prescription to OTC category. Company intends to do the same in India as well ( over medium term )
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
4 Likes
Thyrocare Technologies -
Q2 FY 26 results and Concall highlights -
Revenues - 216 vs 177 cr, up 22 pc
Gross profit - 156 vs 126 cr, up 24 pc ( gross margins expanded by 100 bps driven by operating efficiencies and procurement savings )
EBITDA - 71 vs 48 cr, up 48 pc ( margins @ 33 vs 27 pc )
PAT - 48 vs 26 cr, up 82 pc
Franchise revenues @ 125 cr, up 20 pc YoY ( Total franchisees @ 10100, up 20 pc vs LY. Revenue / franchisee @ 1.24 lakh / Qtr )
Partnership revenues @ 66 cr, up 35 pc YoY
D2C revenues @ 11.2 cr, up 16 pc YoY
No of tests conducted @ 5.3 cr, up 21 pc YoY. Revenue / test @ Rs 38. Revenue / patient @ Rs 406
Pathology revenues grew by 24 pc. Radiology revenues grew by 3 pc
Have declared an interim dividend of Rs 7 / share
Company’s total no of Labs @ 38. Zone wise distribution of labs is as follows -
West - 9
East - 6
North - 13
South - 9
International ( @ Tanzania ) - 1
All of company’s labs are NABL certified
Company’s Tanzania business is expected to double in FY 26 vs 25. This business should break even in next 1.5-2 yrs time
Company’s franchisee can be a nursing home, standalone hospital, standalone collection center, standalone clinic etc. Out of the 10k franchisees that they have, only 1k use Thyrocare brand. Others collect samples under their own hospital / clinic’s name and send the sample to thyrocare for testing and get a Thyrocare branded report. Franchisees also provide their own Phlebotomists
Company also has its own dedicated team of aprox 1900 phlebotomists. These ppl service company’s partnerships like bigger hospitals ( corporates ), MedTech channels etc ( like PharmEasy )
Most of company’s growth is coming from their bigger franchise partners ( ie top 5k franchisees )
At present B2G is not a large focus area for the company ( At present, 1 pc of company’s sales come from B2G business )
Q2,Q4 are seasonally strong Qtrs. Q1,Q3 are generally softer. Overall H1 vs H2 margins should be similar
Company is investing heavily into their cold chain infrastructure - helps a lot in improving test accuracy, customer satisfaction, franchisee retention, reducing test to result timelines
1 Like
V2 Retail -
Q1 FY 26 results and concall highlights -
Q1 outcomes -
Revenues - 632 vs 415 cr, up 52 pc. Volume growth @ 50 pc
Gross profit - 186 vs 120 cr, up 55 pc ( GMs @ 29.5 pc )
EBITDA - 87 vs 55 cr, up 57 pc ( margins @ 13.8 vs 13.4 pc )
PAT - 25 cr, up 51 pc ( PAT margins @ 3.9 pc, due 50 pc increase in depreciations and interest costs )
Total no of stores @ 216. Opened 28 and closed 1 store in Q1. Total retail area @ 23.49 lakh sq ft ( avg store size @ 10.87 k Sq Ft )
Sales / Sq Ft / month @ 960. That amounts to Rs 11.5 k / Sq Ft / yr
Avg bill value in Q1 stood @ 901 vs 824 in Q1 LY. Avg selling price per article stood vs 303 vs 260 in Q1 LY
SSSG @ 5 pc
Revenue Mix -
Men’s wear - 41 pc
Ladies wear - 29 pc
Kids wear - 24 pc
Lifestyle - 6 pc ( like Deos, Wallets, Sunglasses, ladies purse etc )
FY 25 outcomes -
Revenues - 1884 vs 1164 cr, up 62 pc
GMs @ 29.3 vs 29.7 pc
EBITDA - 257 vs 148 cr, up 74 pc ( margins @ 13.7 vs 12.7 pc )
PAT - 72 vs 28 cr, up 160 pc
PAT in Q1 on a pre Ind AS basis stood @ 30 vs 19 cr, up 62 cr. PAT on a pre Ind AS basis for FY 25 vs FY 24 stood @ 87 vs 39 cr, up 130 pc
Q2 FY 26 update - Revenues @ 705 vs 380 cr, up 85 pc. SSSG @ 10.3 pc. Company added 43 new stores reaching a total of 259 stores as on 30 Sep. Monthly sales / Sq Ft stood @ Rs 938. H1 revenues @ 1335 cr, up 68 pc. Total retail area @ 27.94 Sq Ft
Company aims to keep opening 100 stores / yr for next 3-4 yrs. Aim to reach 600-700 stores by FY 30
In Q1, sales @ MRP represented 92 pc of company’s sales. This is a direct reflection of company’s accurate assortment planing
Company does not sell online
If one were to look at mature stores, per sq ft sales per month stood @ Rs 1095
Guiding for a 50 pc revenue growth for FY 26. Expecting SSSG @ 8 - 10 pc + 40 - 42 pc sales growth from new store additions
Have passed an enabling resolution to raise funds via QIP, upto 400 cr - to accelerate growth + to reduce debt + to improve backend capabilities + to get better procurement terms from vendors
Company expects to be PAT positive in all 4 Qtrs in FY 26
Per store opening cost for the company typically varies between 2-2.5 cr ( including inventory + Capex ). Therefore the capex required to open 100 stores / yr should be around 250 cr
The shift in budget clothing retail from unorganised to organised sector is a huge tailwind and is even defying the broader macro - economic slowdown in the country. This is likely to continue for next 3-4 yrs
If the high growth trajectory as seen in Q1, Q2 sustains - company may even even open 120 stores in FY 26 and around 140 stores in FY 27
On an avg, the new stores are clocking Rs 800 / sq ft / month sales right from the first month - a very very encouraging sign ( IMHO ). An avg store breaks even @ sales value of Rs 500 / sq ft / month
Pre Ind AS EBITDA and PAT margins for FY 25 were @ 8 pc and 4.5 pc respectively. Company aspires to reach 10 pc EBITDA levels on a Pre Ind AS basis by FY 27 ( Assumption - if that transpires into a PAT margin of 6.5 pc and the topline grows compounds @ 50 pc CAGR till FY 27, absolute Sales and PAT in FY 27 can be 4230 cr and 275 cr !!!. At 5 pc PAT margins, absolute PAT would reach 210 cr )
Avg rentals that the company is paying today is Rs 53 / sq ft. For the new store openings, company is negotiating better terms and is able to reduce avg rentals to Rs 41 / sq ft for new store openings ( as they r able to attract customers at some distances away from main / central mkt places )
In case the per sq ft sales for new stores starts tapering off / SSSG at old stores shows a slowdown - company would slow down their rapid expansion spree and re-calibrate their growth stratergy
Disc: added recently, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
3 Likes
@ranvir thanks for the summary, what is your take on Cantabil, its currently available at attractive valuation.
Orient Electric -
Q2 FY 26 results and concall highlights -
Q2 outcomes -
Revenues - 702 vs 660 cr, up 6.4 pc ( resilient revenue growth despite seasonal softness, led by non ECD categories )
Gross margins @ 31.5 vs 32.4 pc
EBITDA - 38 vs 36 cr, up 6.5 pc ( margins @ 5.4 vs 5.4 pc )
PAT - 12.1 vs 10.5 cr, up 15 pc ( margins @ 1.7 vs 1.6 pc )
Segmental performance -
Lighting and Switchgears -
Revenues - 262 vs 221 cr, up 18 pc
EBIT - 34 vs 30 cr ( margins @ 13.1 vs 13.6 pc )
Consumer lighting witnessed double digit volume growth led by distribution expansion and new product introductions. Value added categories contributed to 65 pc of consumer lighting sales. Professional Luminaries also grew in double digits supported by execution of key projects
Wires revenues more than doubled. Switches also grew in double digits
Electrical consumer durables ( ECD ) -
Revenues - 441 vs 440 cr ( due seasonal softness )
EBIT - 36 vs 39 cr ( margins @ 8.2 vs 8.8 cr )
Improved mkt share in fans led by expanded DTM reach, strong momentum in digital channels. NPDs contributed to 34 pc of fan sales. BLDC fan sales surged 40 pc which led to improvement in share of premium category by 500 bps
Water heaters grew in high single digits
Company’s new Hyderabad facility shall ensure that capex requirements for next 2-3 yrs shall be minimal. As their Hyderabad facility ramps up, it should also help ramp up their EBITDA margins
Early onset and delayed withdrawal of monsoons dampened the demand for cooling products portfolio ( both fans and coolers )
Company has rolled out its wires portfolio in North and East India. They ll improve the depth and breadth ( new geographies ) of their distribution in a calibrated manner. Company’s strong distribution in fans should be a natural tailwind for their Wires business
Company believes - they should reach 10 pc kind of EBITDA margins in next 6-7 Qtrs ( in line with other FMEG players ) - this can be a big kicker for the bottomline going forward
Company has taken an avg price hike of 1.5 pc in their fans category towards the end of Sep 25
Should be able to maintain their GMs in the 32-34 pc band over medium term ( going forward ). Q2 this year has been a blip due excessive rains
Company’s lighting business split between B2B:B2C is @ 75:25. Over medium term, company aspires to reach 60:40 split between their B2B:B2C channels
If the commodity prices remain elevated, company will pass on these prices to consumers over a period of time
Disc: holding, looking for an uptick in company’s margins, a good summer next year should help, not SEBI registered, not a buy / sell recommendation
1 Like
Sorry … have not studied Cantabil Retail 
1 Like
Senores Pharma -
Q1 FY 26 results and concall highlights -
Revenues - 130 vs 80 cr, up 64 pc
Other income - 7 vs 1 cr
Gross margins @ 55.5 vs 56.9 pc
EBITDA - 34 vs 21 cr, up 60 pc ( margins @ 24.8 vs 26.5 pc )
PAT - 19.7 vs 10.7 cr, up 84 pc
Segmental revenues -
Regulated mkts - 90 vs 53 cr, up 70 pc. Regulated mkts contributed to 65 pc of sales. CMO / Own ANDAs seeing strong growth. Company supplies to US, UK, Canada. Company currently has 24 commercial products in regulated mkts and a pipeline of another 57 products ( with approved ANDAs ). Their US FDA approved facility is located @ Atlanta, US
Emerging mkts - 29 vs 22 cr, up 32 pc. Their WHO approved formulations facility for EMs is located @ Chhatral. This facility is also approved by regulators of 10 more EM countries
Branded generics + APIs + Other income - 19 vs 5 cr, up 264 pc. Branded generics business is seeing strong sales momentum. They supply critical care Injectables to various Hospitals in India. They have a field force of 82 employees in India. Have launched 60 products
Their API facilities are located at Noroda, Mehsana ( Gujarat ). Have commercialised 16 APIs
Branded generic sales ( in India ) in Q1 stood @ 8.5 cr. Aim to clock 50 cr of Branded generics sales in India in current FY
Guiding for 50 pc topline and 100 pc PAT growth in FY 26 over FY 25 ( that would translate to revenues of aprox 600 cr and PAT of aprox 120 cr for FY 26 !!! )
Company acquired a few ANDAs from Dr Reddy’s and Wockhardt in Q1. These products shall be launched later this yr
Launched 2 ANDAs in US in Q1. Aim to launch another 15-16 ANDA products in current FY ( most of these shall be rolled out in H2 ). A large portion of company’s products are supplied to Govt contracts and belong to controlled substances category ( unlike most other companies ) - providing them with greater predictability of revenues and lesser price erosions
At present, 2 manufacturing lines are operational @ company’s Atlanta formulations plant. Expecting 2 more lines to be operational before the end of FY 26. This ll increase their manufacturing capability by aprox 80 pc. Later, they intend to set up a sterile manufacturing line in US
Company received 23 new approvals for EMs in Q1 taking total no of approvals to 308. Shifting their product portfolio towards more niche products which should help improve their realisations
Geography wise EBITDA margins in Q1 -
Regulated mkts - 35.5 pc
EMs - 6 pc ( a lot of scope for improvement here )
India branded generics + APIs - 28 pc
As their margins in EM business improve, company’s consolidated EBITDA should inch upwards
Once their new API facility @ Mehsana is FDA approved, the backward integration should help their regulated mkts business
Company aims to clock 400 cr of revenues from regulated mkts in current FY. Should be able to grow it @ 20-25 pc CAGR over medium term wef next FY. All of regulated mkt’s revenue is currently coming from Atlanta facility
In Q1, 30 cr of regulated mkt revenue was from CMO segment, rest 60 cr came from own products. But this split keeps varying from Qtr to Qtr. On an yearly basis, split is generally 50:50
Company doesn’t supply controlled substances directly to the Govt in US. Their partners do it
Expecting growth in EMs to pick up wef Q2
Company expects their new API facility to be inspected by Q2/Q3 next FY
In the EM business, company expects to touch double digit EBITDA margins by end of FY 26 and should be exiting FY 27 with mid teen EBITDA margins
Disc: studying, not holding, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
2 Likes
Dhanuka Agritech -
Q2 FY 26 results and concall highlights -
Revenues - 598 vs 654 cr, down 8 pc
Gross margins @ 42.2 vs 42.2 pc ( flat YoY )
EBITDA - 137 vs 160 cr, down 14 pc ( margins @ 22.8 vs 24.4 pc )
PAT - 94 vs 118 cr ( down 20 pc )
For full FY 26, company expects flattish revenues vs FY 25 and an approximate 100 BPS decline in margins ( that would translate to an annual PAT of aprox 275 cr or so for current FY )
During this Quarter, Abnormal and uneven rainfall distribution led to significant crop losses in various states. Some regions experienced excess rainfall, while others faced deficient showers, creating uneven soil moisture conditions. Crops in waterlogged areas suffered significant damage, reducing the application of agrochemicals. These conditions delayed harvesting and the application of crop protection product, limited pest infestation due to heavy rain washing off the pest, resulting in lower demand for agrochemical products from farmers
Company has received the Registration Certificate of Ipflufenoquin for indigenous manufacture u/s 9(3) duly approved by the Secretary, CIB&RC for use in Transplanted Paddy for the control of Leaf blast & Neck blast. This product is introduced in collaboration with Nissan Chemicals, Japan
Have started trial production of second product from our Dahej Plant. Expect this product to help them increase the revenue from Dahej Plant. Also, sales of Bifenthrin ( broad spectrum insecticide ) from Dahej are on track and in line with their annual objective
Segmental breakup of sales -
Insecticides - 46 pc
Fungicides - 29 pc
Herbicides - 9 pc ( Lower sales of herbicide has had the max impact on company’s topline in Q2. LY - the share of herbicides in total revenues was 17 pc !!! )
Others ( includes Plant Growth Regulators ) - 16 pc
Geographical breakup of sales -
North - 30 pc
South - 33 pc
East - 13 pc
West - 24 pc
The second product that company has started manufacturing from Dahej is Difenoconazole ( a broad spectrum Fungicide )
In Q2, sales from Dahej AI plant stood @ 22 cr with a small EBITDA loss of 0.5 cr. In Q1, sales from this plant were @ 16 cr and EBITDA loss was 3 cr
At present, 10 of company’s brands clock revenues > 50 cr. Five yrs ago, this figure was 3 brands
Will be launching Kinzan this year ( in-licensed product from Nissan ) - a fungicide for grapes and potato crops
Last year, company acquired international rights to sell 02 AIs - Iprovalicrab and Triademenol ( invented by Bayer AG ). Plan to export it to 20+ countries - including LatAm, EU, ME, Africa. These 2 products have a sales potential of aprox 200-250 cr. Company expects to achieve sales of > 150 cr from these molecules in next FY with EBITDA margins close to company’s consolidated EBITDA levels. Going forward, company intends to make one of these products @ their Dahej facility ( wef next FY )
Aim to launch - margin accretive 8 X 9(3) products in next 2 yrs
GoI has banned certain Bio-Stimulants in India. Company lost aprox 25 cr in sales due to this ( in Q2 )
Expecting sales from products acquired from Bayer to be less than 40 cr in current FY. Have already clocked 25 cr in revenues from sale of these products ( in H1 this yr )
Oct rains have ensured that the start to Rabi season has also been below par ( hence the flat topline guidance for full FY ). Also, due to flooding and crop damages in Maharashtra, Punjab, AP, Telangana in the Kharif season, the farmer sentiment is likely to be tepid in the beginning of the Rabi season
Company’s clean and strong balance sheet allows them to go for both - backward integration opportunities + acquisition opportunities ( like the 2 molecules they acquired from Bayer ). Company is continuously on the lookout for such opportunities
Govt has significantly tightened the regulations ( wrt Quality Controls etc ) for the sale of Bio Stimulants in India. Company is in the process of complying with these new regulations. Once compliant, company shall be selling them again in India ( it’s a short term negative but a medium to long term gain for organised players like Dhanuka. Company believes, they ll start to see meaningful benefits from these new regulations to start flowing in wef Q1 next FY )
Disc: holding, biased, added recently, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
Sumitomo Chemicals India -
They have 5 manufacturing plants in India located at -
Silvasa - 3 Acres - Formulations and Packaging of Glyphosates and other speciality products
Bhavnagar - 58 Acres - AIs and formulations - for pesticides
Vapi - 6 Acres - Formulations and packaging
Gajod - 120 Acres - Metal Phosphides and formulations
Tarapur - 5 acres - AIs
Company produces a total of 14 AIs ( in-house )
Some comments from previous Concalls -
Launched innovative products such as Meshi, Portion, and Ormie in last financial year. Recently received regulatory approval in India for two innovative patented high potential molecules of SCC ( Japanese parent ) - Excalia Max ( fungicide ) and Lentigo ( herbicide )
Their new product intro in India for FY 26 - Exalia Max ( a fungicide used in Paddy, Soybean, Groundnuts crops ) is a patented molecule ( developed by SCC - Japan ) and is already a global blockbuster. They will also be making its AI in India by FY 27 ( @ Tarapur )
Their second high profile launch in India for FY 26 - Lentigo ( its a Paddy herbicide ) is also a patented molecule from the stable of SCC
Exalia Max and Lentigo should do very well in India. At present, AIs for both are being imported and both are being formulated in India
Have also acquired an additional 20 acres near their Bhavnagar plant. Will be making another propriety molecule from SCC @ Bhavnagar ( its off patent now, but SCC continues to command a very high mkt share for the same - globally ). Will be spending 55 cr for this expansion. Should be able to complete this expansion by end of FY 27
Another brownfield capex of 10 cr is lined up @ Tarapur to make another patented molecule developed by SCC. Should be able to commence commercial production of this molecule by end of FY 27 ( just like Bhavnagar expansion )
SCC Japan intends to start manufacturing Semi Conductor chemicals in India. SMIL believes, they ll be considered by the parent for this opportunity
Q2 FY 26 outcomes -
Revenues - 930 vs 988 cr ( down 6 pc )
Gross margins - 43.1 vs 42.6 pc
EBITDA - 218 vs 245 cr, down 11 pc ( margins @ 23.4 vs 24.8 pc )
PAT - 178 vs 193 cr, down 8 pc
H1 FY 26 outcomes -
Revenues - 1987 vs 1827 cr, up 9 pc
Gross margins @ 40.4 vs 40.9 pc
EBITDA - 437 vs 406 cr, up 8 pc ( margins @ 22 vs 22.2 pc )
PAT - 356 vs 319 cr, up 11 pc
Product wise breakdown of H1 revenues -
Insecticides - 39 pc
Herbicides - 26 pc
PGRs - 9 pc
Metal Phosphides - 8 pc
Fungicides - 9
AND and END ( Animal health and Environmental health divisions ) - 9 pc
Domestic vs Export sales @ 85 : 15 ( In Domestic mkts, 80 pc of sales come from branded products. In export mkts, share of sales from branded products is far lower @ 34 pc )
Company’s major export geographies include - Africa, Japan, Asia, Latam, EU. Company also exports to US and Aus ( in smaller proportions ). Most of company’s export sales are AIs and share of Formulations in export sales is far lower
Q2 FY 26 highlights -
The South-West Monsoon, though strong overall, turned challenging during the key consumption period. After a brief dry spell in early July, persistent and widespread rains from mid-July through September disrupted normal agronomic activities, impacting pesticide applications across several regions. Farmers missed a few scheduled spray cycles in major kharif crops due to prolonged wet conditions and restricted field access. Excess moisture also caused localized crop damage in cotton, groundnut, soybean, rice, and chillies, leading to reduced pest incidence and subdued agrochemical consumption
The quarter witnessed a softer performance, largely reflecting the adverse weather impact. While price realization remained stable, lower volumes led to moderated operating leverage and margins
Despite this, the company’s disciplined channel management and prudent working capital practices ensured business continuity without material sales returns or collection delays — in contrast to broader industry trends marked by inventory build-up and payment stress
Export performance was impacted by softer offtake in select markets such as Africa and Latin America, though demand in the U.S. and Europe remained steady. The decline was primarily due to shipment deferrals and product-specific factors in certain geographies
The newly launched rice herbicide ‘Lentigo’ continued to gain encouraging traction, while ‘Excalia Max’ and other key molecules maintained strong market acceptance. Core brands across insecticides and herbicides sustained leadership positions and contributed to resilience in the overall mix. In the Environmental Health Division, branded and custom solution products registered healthy growth off a low base
Cash on books as on 30 Sep @ 2080 cr !!!
Company is bullish about the upcoming Rabi season due healthy reservoir and soil moisture levels
Company continues to work towards strengthening Sumitomo Japan’s supply chains and concentrating them in India for future exports to RoW with India as a key manufacturing base
Company is in the process of registering its formulations in various export mkts. Registration of these take time ( 2-3 yrs, depending on country to country ). As these registrations keep maturing, company’s share of formulations in their export business shall improve ( this segment has better margins vs AIs )
65 pc of company’s business happens in the Kharif season. That trend is likely to hold up in short to medium term
Prices of formulations in the domestic mkt are holding up well ( despite the pressure on volumes in H1 )
Company will develop a new Greenfield manufacturing facility @ Dahej. Work is expected to commence wef next FY. This will be funded via the large cash surpluses that the company currently holds. This site will be developed, keeping in mind Sumitomo Japan’s ambitions to develop India as their new manufacturing hub for their global business
Aprox 35 pc of company’s current revenues come from patented products
Company’s semiconductor chemicals shall be used in fabrication. Company is monitoring the progress of corporates ( specially TATAs ) setting up fabrication plants in India. Once that happens, company shall begin their Semi Conductor chemicals business
Company is evaluating manufacturing of 7 new products ( AIs ) @ Dahej Greenfield facility. Company has submitted feasibility reports iro these products to its parent in Japan. If all are approved to be made in India ( @ Dahej ), company may incur a capex of aprox 500- 600 cr over next 3 odd years @ Dahej
Disc: holding, added recently, not SEBI registered, biased, not a buy/sell recommendation, posted for educational purposes
1 Like
IIFL Finance -
Q2 FY 26 results and concall highlights -
P&L statement -
NII - 1065 vs 1011 cr, up 5 pc
Non Fund based income - 837 vs 468 cr, up 79 pc ( income from assigned assets @ 586 vs 201 cr, income from co-lending assets @ 160 vs 140 cr, other income @ 90 vs 127 cr )
Total income - 1902 vs 1480 cr, up 29 pc
Operating expenses - 870 vs 732 cr, up 19 pc
Loan losses + Provisions - 500 vs 406 cr, up 38 pc
Net gain on fair value changes - 24 vs 105 cr, down 77 pc
PBT - 556 vs 446 cr, up 25 pc
Exceptional items - NIL vs (-) 586 cr
Minority Interest - 41 vs 64 cr
PAT - 376 vs (-) 157 cr
Loan book @ 59.7 vs 44.5 k cr, up 34 pc
Assigned assets @ 18.6 vs 13.9 k cr, up 33 pc
Co Lending book @ 11.8 vs 8.4 k cr, up 40 pc
Consol Avg cost of borrowing @ 9.4 vs 9.2 pc
Breakup of loan book -
Home loans - 32.03 vs 29.11 k cr, up 10 pc
Gold loans - 34.5 vs 10.8 k cr, up 220 pc
MSME secured loans ( LAPs + Micro LAPs ) - 8.99 vs 8.5 k cr, up 5 pc
MSME unsecured loans - 3.9 vs 4.3 k cr, down 9 pc
Micro Finance - 8.3 vs 11.3 k cr, down 26 pc
Others ( construction finance, personal loans, capital mkt finance ) - 1.6 vs 2.1 k cr, down 20 pc
Total AUM @ 90.11 vs 66.96 k cr, up 35 pc
Segmental GNPAs -
Home loans - 1.4 vs 1.25 pc
Gold loans - 0.12 vs 2.4 pc
MSME secured - 5.25 vs 3.53 pc ( have discontinued disbursements in micro LAPs where GNPAs are 20.45 pc )
MSME unsecured - 7.5 vs 2.95 pc ( have discontinued digitally / MFI sourced loans where the GNPAs are 11.12 pc )
MicroFin - 5 vs 3.43 pc
Consolidated GNPAs @ 2.1 vs 2.4 pc
Consolidated NNPAs @ 1 vs 1.1 pc
Segmental analysis -
IIFL Finance Stanalone ( Gold Loans + MSME loans + Capital mkt loans + Capital Mkt loans + Construction loans ) -
Segmental PAT - 210 vs (-) 440 cr
Avg yeilds @ 18.6
Cost of funds @ 9.4 pc
Spreads @ 9.2 pc
Avg ticket size @ 99k
No of branches @ 2840
IIFL Home finance -
Segmental PAT - 203 vs 312 cr ( in Q1, it was @ 201 cr )
Avg yeilds @ 12 pc
Cost of Funds @ 8.4 pc
Spreads @ 3.6 pc
Avg ticket size @ 15.5 lakh
No of branches @ 317
IIFL Samasta Finance ( Micro Fin Business ) -
Segmental PAT - 3 vs 34 cr ( in Q1, it was @ (-) 61 cr )
Avg yeilds @ 24.1 pc
Cost of Funds @ 9.7 pc
Spreads @ 14.4 pc
Avg ticket size @ 0.59 lakh
No of branches @ 1641
Company expects lower loan losses and provisions in H2 ( vs H1 )
Micro LAP AUM stands @ 2.02 vs 2.7 k cr, Digitally sourced unsecured MSME loans AUM stands @ 1.79 vs 2.8 k cr - combined these 2 constitute aprox 4 pc of company’s AUM. Both these businesses now stand discontinued. These 2 businesses have been bulk contributors to provisions and loan losses
Expecting credit costs in H2 to fall to about 2.3 pc vs 3.5 pc in H1. This should result in full year credit costs of aprox 2.8 - 3 pc
Assigned loan book and Co Lending business are also growing rapidly - a key positive. Banks are showing a lot of interest in developing their Co-Lending books with the company
Momentum in Gold loans continues to remain very strong. Growth in Home loans should start to pick up wef Q3. In H1 company was treading cautiously here. Now they r confident of accelerating Housing Loans growth towards the 15 pc kind of growth trajectory
Worst seems to be over in MFI business. Second half should be much better than H1. However, it ll still not be as good as it was 18 months back. Recovery is expected to gradual
Guiding for an RoA of 2.5 - 2.8 for full FY 26 !!!
Disc: holding from lower levels, biased, not SEBI registered, not a buy / sell recommendation, posted only for educational purposes
2 Likes
Utssav CZ Gold Jewels -
Company is a contract manufacturer of Gold + Studded Diamond Jewellery ( 18k, 20k and 22k )
Q2 and H1 results and concall highlights -
H1 outcomes -
Revenues - 475 vs 284 cr, up 67 pc ( volume growth @ 25 pc )
EBITDA - 45 vs 16 cr, up 184 pc ( margins @ 9.45 vs 5.57 pc )
PAT - 29 vs 10 cr, up 197 pc
Company’s integrated manufacturing facility is located @ Andheri ( Mumbai ) measuring about 8.2k Sq Ft with an installed capacity to handle aprox 1500 kg of gold / yr. At present, employs 50+ designers, 80 + skilled artisans
Have initiated steps to expand capacity to be able to handle 2500 kg of Gold / yr with an additional manufacturing space of 5600 Sq Ft
Company employs machines like - CAM machines ( for computer aided precision manufacturing ), 3D Wax printers, Yasui Casting machines, Flask burnout machines ( to improve casting efficiency )
Company supplies jewellery to 320 + retailers and distributors across 23 states. Employs a sales team of 15 ppl
Some of company’s renowned clients include - Kalyan Jewellers, PNG Jewellers, TBZ, DP Jewellers, Kalamandir, KRA Jewellers, Bhima Jewellers, Aditya Jewels, DAR Jewellers etc
Company’s bulk of revenues are derived from - Maharashtra, TN, Gujarat, Delhi and UP
Management is guiding for a full yr sales tgt of 1100 to 1200 cr !!! ( assumption - if the margins sustain, PAT can be closer to 70 odd cr !!! )
On the exports front, aim to expand their exports to GCC countries, Singapore
In H1, EBITDA margins have expanded due operating leverage, better product mix + 100 bps margin expansion have been contributed by inventory gains. On a PAT level, company intends to keep clocking 4.5 - 5 pc margins ( in the absence of inventory gains / losses )
Their EBITDA margins are higher than peers ( like SKY Gold etc ) as they are more into designer jewellery vs peers
Company’s aspiration is to be clocking > 4000 cr of annual sales by FY 30 with similar EBITDA and PAT margin profiles
Company will be showcasing its Jewellery in an International exhibition @ Dubai for the first time in Nov this yr. Also going to open an office in Dubai
Current share of sales from Diamond studded Jewellery is only @ 2pc. As this share improves, margins should head higher
Going by the current demand scenario, company is expecting a volume growth of > 25 pc in H2 ( they clocked 25 pc volume growth in H1 )
Negative cash flows due rapid growth ( hence expanded working capital ) are likely to continue for foreseeable future
Disc: initiated a tracking position, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
4 Likes
Dodla Dairy -
Q2 FY 26 results and concall highlights -
Q2 outcomes -
Revenues - 1018 vs 997 cr, up 2.1 pc
Gross margins - 27.7 vs 25.5 pc
EBITDA - 93 vs 96 cr ( margins @ 9.1 vs 9.6 pc - due sharp increase in employee and other expenses, despite gross margin expansion )
PAT - 66 vs 63 cr
Cash on books as on 30 Sep @ 596 cr
Avg milk procurement in Q2 @ 19.5 vs 17.2 LLPD { Osam Dairy ( acquired recently ) procured 0.7 LLPD }
Avg milk sales @ 13.1 vs 11.6 LLPD ( Osam’s share @ 0.7 LLPD )
Curd sales @ 360 vs 323 MTPD ( Osam’s share @ 14.6 MTPD )
VAP sales @ 290 vs 378 cr representing 29 pc of sales vs 39 pc in Q2 LY ( Osam’s share @ 15 cr ). Q2 FY 26 saw very low sales proportion of bulk fat sales vs FY 25 - hence this drop in VAP percentage
Product wise breakup of sales -
Milk -70 vs 61 pc
Curd - 20 vs 17 pc
Other VAP products - 7 vs 5 pc
Bulk fat sales - 3 vs 17 pc
Company’s milk processing facilities -
Andhra - 6 facilities
Karnataka - 3 facilities
Telangana - 2 facilities
TN - 3 facilities
Bihar - 1 facility
Jharkhand - 1 facility
Uganda - 1 facility
Kenya - 1 facility
Total installed capacity @ 25 LLPD
Orgafeed - Cattlefeed business - Total installed capacity @ 480 MTPD ( @ 2 places in AP ) - selling feed directly to farmers
Some comments from previous concalls -
The Greenfield capacity in Maharashtra will come on-stream by end of FY 27. Expected capacity @ 10 lakh lit / day. Max revenue potential from this new Greenfield Maharashtra plant should be around 1800 - 2000 cr !!!
The Maharashtra Capex should cost them aprox 280-300 cr - going to be funded mostly via internal accruals. Have acquired some more land near the Maharashtra capex site for the expansion of Orgafeed’s business
Normally liquid milk gives 7-8% EBITDA margin while value added products give 12-13% margin. In value added products, ghee and butter have less margin (around 5-6%) while butter milk, curd, lassi have 15% margins
Expecting fast growth in the Ghee segment in FY 26. Company had earlier pulled out of Ghee mkt as they were a procurement deficient company. That has reversed in last 2 yrs. So from FY 26 onwards, they intend to grow this segment aggressively. Plus they also intend to premiumise their Ghee offering over a period of time so as to reach 6-7 pc EBITDA margins over medium term ( in this segment )
Q2 FY 26 concall highlights -
Elevated Advertisements ( on OTT + Online platforms ) + Employee costs led to fall in EBITDA margins
Africa revenues improved by 21 pc in Q2. Company is deliberately not raising milk prices in Kenya in order to capture greater mkt share
Orgafeed reported a 38 pc YoY revenue growth Q2 with EBITDA margins @ 13.7 pc ( LY, Orgafeed reported a full yr revenue of 140 cr with EBITDA margins @ 15 pc )
Consol liquid milk sales reported volume growth @ 12.6 pc ( @ 13.1 LLPD ). Without OSAM’s contribution, volume growth was @ 6.4 pc
Consol curd sales reported a volume growth @ 11.2 pc ( @ 360 MTPD ). Without OSAM’s contribution, volume growth was @ 6.7 pc
Excluding bulk fat sales, VAP sales grew @ 24 pc - very encouraging sign
Aim to expand OSAM’s capacity from 1.1 LLPD to 2 LLPD by end of next FY
Spent 77 cr in Capex towards their upcoming Maharashtra facility
Dodla as a milk brand is fairly well penetrated in AP + Karnataka. They have greater scope of distribution expansion in Telangana + TN
Company’s milk procurement mix ( except International and OSAM’s business ) -
AP - 32 pc
Karnataka - 26 pc
TN - 26 pc
Telangana - 2 pc
Maharashtra - 14 pc
Curd pouch : Tub sales break up @ 80:20
Procurement prices in Q3 have gone up by another Rs 1.5 / lit - due extended rains ( against the expectation of fall in procurement prices wef Q3 )
Standalone India business should grow by 5-7 pc in H2. Orgafeed, Africa and OSAM business ( all three ) should grow much faster in Q2
Continue to maintain their EBITDA margin band guidance of 8-10 pc for H2
Milk procurement prices in Africa have started to trend downwards in Q3
Last time, company took a price hike was 6 months ago. Do not have a plan to take a price hike in near future
Currently OSAM is operating @ sub 2 pc kind of EBITDA margins. Aim to take the margins higher on a QoQ basis. Volume growth @ OSAM remains strong @ 20 pc or so. Ultimate aim is to incline the margins to 7-8 pc by end of next FY
Advertisement spends in Q2 stood @ 10 vs 7.2 cr YoY
Sharp fall in bulk fat sales is because LY company had procured excess milk when the prices were lower. That is being exhausted now
EBITDA margins for milk in Q2 were @ 9.23, VAP @ 11.23 ( on a consolidated basis )
Because of excess rains in H1, flush season in H2 is expected to be weaker than usual - should have an adverse impact on margins in Q3 ( lets see what transpires in Q4 )
LY - total bulk sales ( butter + SMP ) stood @ 312 cr. In H1 current year, bulk sales stood @ 85 cr
Statewise breakup of sales in Q2 -
AP - 31
Karnataka - 37
TN - 19 pc
Telangana - 13 pc
Haven’t started sales operations in Maharashtra as of now
At present, company makes 13-15 kind of EBITDA margins in Curd, flavoured milk etc. Their margins in Paneer are around 6-7 pc as they r presently in brand building stage. These margins in Paneer should only inch upwards for the company
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for educational purposes
Sharp fall in bulk fat sales is because LY company had procured excess milk when the prices were lower. That is being exhausted now
EBITDA margins for milk in Q2 were @ 9.23, VAP @ 11.23 ( on a consolidated basis )
Because of excess rains in H1, flush season in H2 is expected to be weaker than usual - should have an adverse impact on margins in Q3 ( lets see what transpires in Q4 )
LY - total bulk sales ( butter + SMP ) stood @ 312 cr. In H1 current year, bulk sales stood @ 85 cr
Statewise breakup of sales in Q2 -
AP - 31
Karnataka - 37
TN - 19 pc
Telangana - 13 pc
Haven’t started sales operations in Maharashtra as of now
3 Likes
Maruti Suzuki -
Q2 FY 26 results and Concall highlights -
Revenues - 40.13 vs 35.56 k cr, up 2 pc
EBITDA - 3394 vs 3558 cr, down 7 pc ( margins @ 8.5 vs 10.3 pc, down 180 bps - mainly led by 160 bps increase in RM costs )
Investment income - 1014 vs 1570 cr ( due hardening of bond yeilds and hence fall in other income on company’s investment surpluses )
PBT - 4251 vs 5100 cr, down 16 pc
PAT - 3293 vs 3069 cr, up 7 pc
Sales volumes @ 5.5 vs 5.41 lakh vehicles, up 1.7 pc
Domestic sales @ 4.4 lakh vehicles, down 5 pc
Export sales @ 1.1 lakh vehicles, up 42 pc
Started production of E Vitara - currently for export mkts ( Including EU and Japanese Mkts ). India launch is expected in near future
Suzuki’s own Li-Ion battery manufacturing commenced in Q2 ( for their Hybrid Vehicles ) with cell and electrode level in-house manufacturing
Launched new SUV - Victoris in Q2 ( has secured 30k bookings in a short span of time )
Grand Vitara has achieved 3 lakh vehicles sold milestone in a short span of 32 months
Both Jimny and Fronx have crossed the milestone of > 1 lakh vehicle exports from India
The company has got 5 lakh fresh bookings from 22 Sep ( 1st day of GST cuts ) till 31 Oct ( vs 3.5 lakh bookings received over this period in last FY ). In the same period, company sold 4 lakh cars this yr vs 2.11 lakh cars sold in LY
Out of 4 lakh car sales ( mentioned above ), 2.5 lakh car sales came from small cars, up 100 pc YoY
Oct car retail figures are up 20 pc YoY for the company ( small car sales are up 30 pc in Oct - ones in 18 pc bracket ). Except for small cars, other segment sales grew by 6 pc
Aim to launch 8 more SUVs in India by 2030
Increased depreciation in Q2 is because their new plant at Kharkoda has gone live
Should be able to export > 4 lakh cars in current FY. Management sounded confident about the same
Company’s aspiration is to achieve 10 pc EBIT margins - its a tall ask but they r trying their best to achieve the same
Exports revenues in Q2 were @ 8300 cr
Disc: holding, biased, not a buy/sell recommendation, not SEBI registered, posted only for educational purposes
4 Likes
Sir heads off to your dedication and helping nature to help us all. Crisp, clear concall summary, clearly shows your business understanding and experience. Feel lucky to have teacher like you. Thank you from the bottom of my heart for teaching a nerd person like me.
2 Likes
Hi Ranvir,
Great results from senoras. Am invested since IPO. There is no dedicated thread on this hence asking for your assistance.
Senores filled stock exchange on 5/11/2025
Pursuant to the Limited Liability Company Agreement (“LLCA”) dated November 04, 2025,
the wholly owned subsidiary of the Company i.e., Senores Pharmaceuticals, Inc., has subscribed to 51% membership interest in Zoraya Pharmaceuticals LLC.
Does this means remaining 49% in Zoraya is held by someone else? Thanks.
Senores Zoraya.pdf (283.4 KB)
Mankind Pharma -
Q2 FY 26 results and concall highlights -
Revenues - 3697 vs 3061 cr, up 21 pc ( due consolidation of BSV’s acquired business. Organic growth in domestic business was @ 6 pc )
Gross profits - 2635 vs 2189 cr, up 20 pc ( margins @ 71.3 vs 71.5 pc )
EBITDA - 924 vs 850 cr, up 9 pc ( margins @ 25 vs 27.8 pc ) - due increased employee costs ( up 130 bps ) and R&D costs ( up 100 bps )
PAT - 520 vs 661 cr, down 21 pc ( margins @ 14.1 vs 21.6 pc ) - due elevated interest costs @ 170 vs 7 cr + elevated depreciation and amortisation costs - 222 vs 103 cr
Debt on books on 30 Sep @ 4800 cr vs 5800 cr on 30 Mar 25
In Q2, business did see some disruptions due change in GST rates for generic medicines - impacting business growth ( primary sales off takes )
Segmental performance -
Domestic formulations business - 2958 vs 2548 cr, up 16 pc
Consumer healthcare - 226 vs 232 cr, down 3 pc
Export formulations business - 513 vs 281 cr, up 83 pc ( mainly led by BSV’s acquired business )
Chronic share in Mankind’s domestic business @ 37 vs 35 pc YoY. This share for the acquired BSV’s business is @ 14.5 pc. However, BSV’s acute business comprises of complex, high entry barriers and limited competition products - this offers them good long term growth visibility
Company’s brands inhaler like Combihale + Symbicort combined ( both used to treat Asthma / COPD ), grew by 28 pc YoY. Nobeglar ( Insulin Glargine ) grew by 36 pc
Brands like Gas O Fast, Manforce condoms reported 36 pc and 14 pc YoY growth in secondary sales. Primary sales were disrupted due GST led disruptions
Company’s brands with sales > 500 cr @ 3 brands, > 200 cr @ 11 brands, > 100 cr @ 23 brands, > 50 cr @ 49 brands
Company’s cardiac and anti-diabetic portfolios grew by 1.2X and 1.3X the IPM growth in these 2 therapies
Per MR monthly sales for BSV’s domestic speciality business improved to 12.6 vs 11.1 lakh YoY
Cash flow from operations in H1 @ 1637 vs 1139 cr, up 44 pc YoY !!! - due consolidation of BSV’s business + growth in base organic business
Q2 capex @ 163 vs 128 cr
Growth in exports in H1 and Q2 on an organic basis stood @ 5 pc
Company is guiding for 18-20 pc growth in BSV’s business for FY 26 vs LY. In H1, BSV’s business has grown by 8-9 pc. H2 LY was weak for BSV due initial integration / teething issues. At present, BSV’s business momentum is really strong - and hence this confidence
Management candidly admitted that they expected much better growth in their organic business in H1. They aim to strive to really pick up pace in their domestic business in H2
R&D spends for full FY 26 should be @ around 2.5-3 pc of sales
BSV’s business should clock 26-28 kind of EBITDA margins for full FY 26
BSV had acquired TTK’s human healthcare business in 2022. Post BSV’s acquisition by Mankind, this business is naturally ( now ) with Mankind. This business has started to show meaningful improvement in last 1-2 Qtrs led by cost efficiencies, better bargaining power with vendors, improving MR productivity
In H1, avg IPM price hikes is 4.2 pc vs 3.9 pc price hikes taken by Mankind Pharma. Company has done this intentionally to remain competitive vs competition + to focus on greater volume growth
Should be able to clock 25-26 pc kind of EBITDA margins for full FY 26
Disc: core holding, biased, added recently, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
1 Like
Sai Silks -
Q2 FY 26 results and concall highlights -
Company’s brands -
Kalamandir - Sell ethnic wear for middle income audience. Company operates a total of 11 Kalamandir stores ( large + medium + small format ) - across AP, Telangana and Karnataka. Price range of products being sold vary from Rs 1k to Rs 1 Lakh
Mandir - Sell ultra premium designer sarees. Price points vary from Rs 6k to Rs 3.5 lakh. Company operates 4 such stores ( small format stores ) in Telangana
Vraha Mahalakshmi - Sell premium ethnic sarees and handlooms for weddings and occasional wear. Price points vary from Rs 4k to Rs 2.5 lakh. Company operates 35 ( large + medium + small format ) such stores across AP, Telangana, TN, Karnataka
KLM ethnic fashion - Sell sarees for daily wear and western wear for women, men and children. Price points vary from Rs 1k to Rs 75k. Company operates 19 such stores ( all large format stores ) across AP, Telangana, Karnataka
Opened 5 new stores in Q2. Total stores now @ 74 vs 69 at the end of Q1. Total retail area now @ 7.5 lakh Sq Ft
Company has started new format stores - VALLI SILK - is targeted towards lower priced silk sarees aiming at mass mkts. Valli Silk stores shall be smaller stores ( say about 5-6k Sq Ft vs 12-18k sq ft for Kalamandir stores ), focus on pocket friendly ranges of women wear + fashion items. Have converted few of their existing stores into VALLI format stores taking the total no of VALLI stores to 7 ( opened 4 stores in Q2 + converted 3 stores to this format )
At present, 50 of company’s 69 stores are in mature category ( > 24 months old )
State wise breakup of stores -
Telangana - 28
AP - 20
Karnataka - 11
TN - 15
Q2 outcomes -
Revenues - 444 vs 347 cr, up 27 pc
Gross Margins @ 41.9 vs 42.2 pc ( marginal decline )
EBITDA - 72 vs 55 cr, up 30 pc ( margins @ 16.2 vs 15.9 pc )
PAT - 40 vs 23 cr, up 68 pc
H1 outcomes -
Revenues - 823 vs 614 cr, up 34 pc
Gross margins @ 41.98 vs 41.77 pc
EBITDA @ 129 vs 74 cr, up 73 pc ( margins @ 15.7 vs 12.1 pc )
PAT - 70 vs 26 cr, up 171 pc
Early onset of festive season was a natural tailwind for the company
SSSG in Q2 stood at a strong 17 pc ( company reports SSSG only for mature stores ie > 24 months old ). SSSG in H1 stood @ 21 pc
Remain optimistic about H2 due upcoming wedding + festival seasons
VALLI Silks also has a far greater online presence and online focus. This helps the company connect with younger customers + helps cater to evolving consumer needs. VALLI Silk stores are seeing encouraging consumer response
02 more Vraha Lakshmi stores are under construction. Also aim to open another 5 Kalamandir stores in near term
LY, third Qtr was a bumper Qtr for the company. Hence the growth rates seen in H1 should moderate going forward. On a full yr basis, company estimates - they may hit 1750 cr kind of sales vs 1462 cr clocked LY. That would mean a 20 pc kind of growth for full FY 26 over FY 25
Capex requirements and working capital requirements for Varha Mahalakshmi stores are 1.5 to 2 X that of a Valli Silk format store. Majority of clothing being stocked @ Valli Stores are priced in the < 4k / piece. With the Valli format its also gonna be far easier for the company to target the tier 2/3 mkts - because of the affordability
Should keep adding add 8 -10 pc of retail space / yr in the medium term
For FY 27, company intends to clock 8-9 pc PAT margins with a 15 pc kind of topline growth over FY 26 ( that would translate to a topline and bottomline of aprox 2000 and 160 cr respectively )
Majority of company’s sales come from Sarees. It’s a one size fits all kind of product. Its a great advantage to have in fashion retail business
Company’s primary focus continues to remain on Women’s wear ( they do sell Mens and Kidswear through their Kalamandir stores ). If they have to venture into a new product line, they would rather go towards Women’s Kurtis etc vs into different types of menswear
Should open about 5-6 Valli Silk and 3-4 Varha Mahalakshmi stores in H2
Company pays avg rentals in the range of 4-5 pc of revenues vs the Industry norm of 8-9 pc - this helps their profitability. They r able to achieve this by clocking better sales per store and good bargaining power that they command as a brand. Company generally gets into a 9 - 15 yr kind of agreement with 15 pc hike every 3 years
Disc: holding, added recently, not SEBI registered, not a buy / sell recommendation, posted only for educational purposes