The remaining 49 must be with the original promoters / owners. In such cases like these ( usually - not necessarily ), u ll see Senores increasing its stakes progressively ( once they have fully turned around or integrated the target company or once they have the availability of additional funds )
2 Likes
Aditya Vision -
Q2 FY 26 results and concall highlights -
Q2 outcomes -
Revenues - 458 vs 376 cr, up 22 pc
Gross margins @ 15.1 vs 15.4 pc
EBITDA - 35 vs 30 cr, up 15 pc ( margins @ 7.6 vs 8 pc )
PAT - 13 vs 12 cr, up 4 pc
H1 outcomes -
Revenues - 1398 vs 1265 cr, up 10 pc
Gross margins @ 15.2 vs 15.3 pc
EBITDA - 124 vs 115 cr, up 8 pc ( margins @ 8.9 vs 9.1 pc )
PAT - 68 vs 65 cr, up 4 pc
Weak performance in Q2/H1 is primarily on the back of excessive and prolonged monsoons + significantly weaker summer season
H1 performance indicators -
SSSG @ 2 pc
No of bills cut @ 62 vs 57 lakh
Avg selling price @ Rs 22.7 vs 22.2 k
Total store count as on 30 Sep stands @ 188 vs 156 stores as on 30 Sep 24. Retail area @ 8.03 vs 6.51 lakh Sq Ft ( all stores are located in UP + Bihar + Jharkhand )
Avg rent / store @ 2.25-2.5 lakh / month
Geography wise break up of stores -
UP - 40 ( present across 23 cities in 23 districts. UP has a total of 75 districts )
Bihar - 116 ( present across 69 cities in all 38 districts )
Jharkhand - 32 ( present in 25 cities covering 22 out of 24 districts )
Last 8 days of Sep ( post implementation of GST cuts ) saw a surge in demand for AC/ TVs / Refrigerators and helped the company clock the topline growth
Added 9 new stores in Q2. Should cross no of stores beyond 200 by end of this FY
Seeing strong demand ( specially for premium products / appliances ) in the month for Oct
Breakup of H1 revenues -
Bihar - 77 pc
UP - 12 pc
Jharkhand - 11 pc
Before 22 Sep, Q2 sales / demand trends were weak as consumers were holding back their purchases
Company’s inventory of AC’s and Refrigerators are now @ near normal levels
On an avg, prices of consumer durables / appliances are down by 7-8 pc due recent GST cuts
SSSG for Q2 was @ 12 pc - good recovery after a weaker Q1
Going by current demand trends ( end of Oct, early Nov ) expecting strong sales performance in Q3 and Q4
Direct cash transfers in the state of Bihar is stimulating the demand in lower per capita strata of the society. Augurs well for the company
For full financial year, new store openings should be around 30-35 stores. Have opened 13 stores in H1. Clearly, new store openings should accelerate in H2
Performance of company’s stores in UP is exceeding their expectations - provides them with a long growth runway
Avg per store inventory that the company usually keeps is Rs 2.7 - 3 cr / store
Disc: core holding, not SEBI registered, biased, not a buy/sell recommendation
Windlas Bio -
Q2 FY 26 results and Concall highlights -
Q2 outcomes -
Revenues - 222 vs 187 cr, up 19 pc
EBITDA - 29 vs 23 cr, up 24 pc ( margins @ 12.8 vs 12.3 pc )
PAT - 18 vs 16 cr, up 14 pc
H1 outcomes -
Revenues - 432 vs 362 cr, up 19 pc
EBITDA - 55 vs 44 cr, up 25 pc ( margins @ 12.7 vs 12.1 pc )
PAT - 35 vs 29 cr, up 22 pc
H1 revenue mix -
CMO - 74 pc, grew by 18 pc
Trade generics - 22 pc, grew by 25 pc
Exports - 4 pc, grew by 23 pc
IPM grew by 7.5 pc in H1. Against this, Windlas was able to grow @ 19 pc
Plant 2 extension ( went live in Q4 LY ) is now contributing meaningfully to their business. Injectable facility ( Plant 5 ) is ramping up well. Confident of commissioning plant 6 by end of this FY ( all 6 plants are located in Dehradun )
Cash on books stands @ 237 cr
ESPOP Schedule for next 4 yrs -
H1 FY 26 - 1.95 cr
H2 FY 26 - 14.8 cr
H1 FY 27 - 14.2 cr
H2 FY 27 - 7.6 cr
H1 FY 28 - 7.3 cr
H2 FY 28 - 4 cr
H1 FY 29 - 3.8 cr
H2 FY 29 - 1.7 cr
H1 FY 30 - 1.6 cr
H2 FY 30 - NIL
These ESOPs shall be charged to P&L. However, it’s a non cash expense. Company believes, it’s an investment and hence have decided to run this generous ESOP program. This program is being run for aprox 100 employees to align their long term interests with that of the company
Company remains open to acquire good quality assets ( even if they have to pay some premium ) - in order to utilise the cash on books. Any good asset that also has prior regulatory approvals in overseas mkt would be a preferred acquisition tgt as it ll help them get mkt access without time delays
Have added customers and have started deliveries of Injectable products wef Q2. As the trust builds ( and repeat orders start flowing in ), company expects to ramp up of their Injectables plant to progress further in H2
Company believes - the anaemic volume growth in IPM is only a short term blip. This should reverse sooner rather than later. This should help company grow at faster rates going forward
Company believes trade generics is a huge opportunity going forward. Even bigger branded players have started entering this space - seeing its future potential
At present, there r literally thousands of CMOs in IPM. As the regulatory pressures mount, consolidation is a natural consequence. Players like Windlas Bio, Akums Drugs, Innova Captab should be the natural beneficiaries
The Pharma biggies in India ( in the branded space ) are doing most of their capex in speciality, complex generics, biologics space for regulated / export mkts. They r happy to outsource their normal generic supplies to CMO operators like Windlas. That’s how the mkt is shaping up at present
As the company’s capacity utilisations improve + Injectables facility ramps up - margins ( Ex - ESOP ) should only inch upwards
Disc: holding, biased, added recently, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
3 Likes
To be honest @ranvir, many a times when I read your stock tracking/holding updates I get the feeling that I do not know my India at all!
Aditya Vision would certainly fit in to this category.
Some questions-
Haven’t the customers they are catering to never heard of ecommerce players Amazon and Flipkart already selling large home appliances?
Is it a niche Bihar/UP hinterland/smalltown only phenomena? Does it mean there is scope for them to target the North East at some point?
Is the company banking on the fact that because ecommerce doesn’t have a physical presence, after sales is out of the question and therefore customers are hopelessly resigned to buying from a physical store?
(It’s actually the opposite for me personally. I can state for a fact that because of poor customer service from the local electronics retailer I have shifted to an all ecommerce only home appliance purchases long time back and have never looked back!)
Or is large appliances delivery pin code specific so hasn’t penetrated hinterlands?
Not sure if you would want to share your thoughts on this as you seem to understand the business, especially if it’s a core holding for you.
But would certainly love to understand the customer profile they are targeting given that for most categories of retail, online/ecommerce is such a big threat that malls barely have footfalls and customers do not buy much even where there are footfalls.
Am I missing something in terms of consumption in Bharat, is what I am wondering.
Or is this company like the Zudio for consumer electronics but co-existing despite the threat of ecommerce?
2 Likes
U r making an assumption which is not correct ( IMHO ). Eg - I live in Chandigarh. I have never bought a consumer durable costing > 5k via online sources. And I know a lot of people ( even younger ) who do the same. Actually, if the delivered item has a fault / flaw / snag - just the thought of returning it and waiting again for a fresh delivery is a nightmare for me ( personally )
That won’t happen with a local Croma, Reliance Retail, Aditya Vision, Vijay Sales etc. U can get it replaced on the spot. That’s also probably the reason that all these guys r doing great business
Second - there r consumer like me ( yes we do exist ) who just can’t buy without touch and feel ( except in case of groceries / small ticket items. Eg - all my groceries come from BlinkIt and literally nothing meaningful comes from a nearby supermarket )
These r some of my thoughts 
2 Likes
Thanks for the inputs 
Via ecommerce for a consumer durable costing 5k or more let’s say via Flipkart or Amazon my experience so far has been, depending on the warranty period- doorstep repair, replacement, pick and drop or refund.
All of this typically also happens at a far lower MRP, unlike at a retail shop where this warranty is priced in.
So at some point the customer is likely to figure out the difference.
But then these are assumptions based on my personal experience.
I get the point about touch and feel being important for customers as well.
That is why I am trying to understand if consumer durables buying from a retail store would be a structural trend like the Zudio success (which I also mentioned above) in tier 2+ despite Myntra/Meesho or risks going the online way if customers find the online experience better.
I personally shifted to online buying primarily due to poor retail shop after sales. Good to note that it’s far better these days.
For now, looks like India is a very complex country with scope for both ecommerce and retail to co-exist.
3 Likes
Electronics mart -
Q2 FY 26 results and Concall highlights -
Revenues - 1591 vs 1335 cr, up 19 pc
EBITDA - 82 vs 82 cr ( margins @ 5 vs 6 pc )
Other income - 17 vs 2 cr ( due receipt of insurance claims + divestment of 4 EBOs )
Interest - 39 vs 22 cr
Depreciation - 38 vs 30 cr
PAT - 16 vs 23 cr
Cluster wise revenue breakup for Q2 -
Hyderabad - 919 vs 799 cr, up 15 pc, SSSG @ 11 pc
Telangana - 226 vs 183 cr, up 23 pc, SSSG @ 16 pc
Andhra Pradesh - 242 vs 187 cr, up 29 pc, SSSG @ 8 pc
NCR - 114 vs 82 cr, up 38 pc, SSSG @ 11 pc
Cluster wise revenue breakup for H1 -
Hyderabad - 1881 vs 1868 cr, up 1 pc
Telangana - 459 vs 448 cr, up 2 pc
Andhra Pradesh - 517 vs 533 cr, down 3 pc
NCR - 273 vs 213 cr, up 28 pc
H1 Operating matrices of mature stores ( > 4 yrs old ) -
No of stores - 84
Revenues - 2254 cr
EBITDA - 153 cr, Margins @ 6.8 pc
H1 Operating matrices of non mature stores ( < 4 yrs old, avg age @ 1.9 yrs ) -
No of stores - 131
Revenues - 933 cr
EBITDA - 28 cr, Margins @ 3 pc
Cash flow from operations ( post Ind AS ) in H1 @ 272 vs 320 cr YoY
Cluster wise no of stores -
Delhi NCR - 32
Telangana + Hyderabad - 116
Andhra Pradesh - 66
Kerala- 1
No of stores added in H1 @ 15 ( after adjusting for divestment of 4 EBOs in Q2 ). Total store count at the end of H1 @ 215 stores
Company has added 88 stores in last 30 months. Higher opex, initially lower throughput, high depreciation and interest expenses are yet to be fully absorbed. As these r absorbed, significant operating leverage may be unleashed
EBITDA margins from NCR stores now @ 1 pc.EBITDA margins in the southern cluster @ 6 pc
Segmental breakup of sales in Q2 -
Large appliances - 38 pc
Mobile phones - 46 pc
Smaller appliances - 16 pc
Comments from previous concalls -
Considering the peripheral areas in NCR like Manesar, Faribadad, Ghaziabad, Greater Noida ( over and above Delhi, Gurugram, Noida ), company should able able to reach a stores figure of 50 + stores by FY 28
Areas where the company is looking to expand into include - Rohtak, Sohana, Muzaffarnagar, Meerut, Saharanpur + 2-3 stores in Orrisa + Tier 3-4 towns in AP + Telangana
Once the North cluster sales cross 750 cr on an annual basis, they should be able to clock 5 pc + kind of EBITDA margins and on sales > 1000 cr, EBITDA margins should start crossing 6 pc ie in line with the South cluster
Comments from Q2 concall -
SSSG @ 11 pc
Sales performance in first 3 weeks of Oct was very strong
AC inventory still stands @ 200 cr + ( excess inventory stands @ aprox 100 cr ). Most of this is likely to be liquidated when the next season begins wef Feb 26
Company is a mkt leader in HYD + Telangana. Company is ranked 2 by mkt share share in AP
Should still be able to clock low double digits topline growth for full FY. Should see better margins in Q3 vs Q1/Q2 ( Q1 margins were @ 6 pc )
Aim to add 4 stores in Telangana, 4 stores in AP, 3 stores in NCR and 2 stores in Hyderabad in H2 ( a total of 13 planned additions )
Company is confident of being able to clock 3 pc EBITDA margins from its NCR stores for full FY 26
Aim to add 30 more stores in FY 27 - that should cost them about 75 cr
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
2 Likes
Dr Lal Pathlabs -
Q2 FY 26 results and concall highlights -
Revenues - 731 vs 660 cr, up 11 pc
EBITDA - 224 vs 202 cr, up 11 pc ( margins largely flat YoY @ 31 pc )
PAT - 152 vs 131 cr, up 16 pc ( due higher other income and Lower tax rate )
Contribution of bundled health package ( SwasthFit ) @ 26 vs 24 pc of total revenues
No of patients tested @ 82 vs 78 lakh. No of samples tested @ 2.54 vs 2.3 cr, up 10.5 pc YoY ( basically all the growth has come from increased volumes - on the back of greater penetration into Tier -3,4 mkts + network expansion in their core metro mkts )
Geography wise breakup of revenues -
NCR - 31 pc
UP + Uttarakhand - 19 pc
Rest of North India - 13 pc
East India - 15 pc
West India - 14 pc
South India - 8 pc
Cash on books @ 1367 cr
Share of organised players in India’s domestic mkt @ 25 pc ( this was about 15 pc in 2015 ). Another 35 pc mkt share is held by hospitals based labs. Roughly 40 pc of the mkt still remains unorganised / with smaller players
Q2 saw muted volume growth due lower incidence of seasonal disease like Dengue, Malaria, Chikungunya etc vs LY’s Q2
Revenue per patient stood @ Rs 889, up 5 pc YoY. Tests per patient in Q2 stood @ 3.09 vs 2.92 in Q2 LY
Announced an interim divided of Rs 7 / share
Guiding for a 11-12 pc revenue growth for full FY 26. Also guiding for full yr EBITDA margins of around 28 pc
Integration of SubUrban diagnostics with Dr Lal’s systems is now complete. Hopeful of seeing double digit revenue growth returning in the Suburban portfolio by end of FY 26
Last price hike was taken by Feb 23. Will take a call on price hike in next calendar year
Investing heavily in genomics / sequencing / complex allergy testing technologies. These techs may become big sometime in future ( by and large, its a futuristic investment )
Company’s radiology revenues are less than 5 pc of total revenues. Company is only into basic radiology at the moment ( like ultrasound, TMT, X Ray etc ). Currently not doing advanced radiology like - CT, MRI etc. Likely to keep focussing on pathology at the moment. However, advanced radiology can be a future growth driver
Company does have a descent CGHS / ECHS business ( about 4-5 pc of their revenues ). Revision in CGHS rates by GoI should benefit the company. Company is yet to ascertain its full impact on them
Company will fully pass all the GST rate cuts ( on various reagents ) benefits to its customers
Company is currently running a test project in Delhi NCR for advanced radiological testing - MRIs / CT scans etc. It’s getting good response. Now they intend to scale it up. Likely to set up 1-2 more centers like that. Once successful, shall then roll out radiological testing in other mkts as well. However, expansion in Delhi NCR shall be their first priority
Actively looking for an inorganic opportunity ( specially for South Indian mkts ) to best utilise the cash on books
Maint + Capex spends for current FY should be around 130-140 cr. Aim to open a total 15-18 new labs + aprox 600 collection centers in current FY
Competitive intensity from hospital backed chains, online players remains. However, a relatively large presence of unorganised sector offers space for everybody to grow
Disc: holding, biased, not SEBI registered, not a buy / sell recommendation, posted only for educational purposes
1 Like
I have been struggling to find a good, granular resource for understanding how India actually works.
So, if India is going to be a $5 -10 Trillion+ economy and that I can benefit from its transformation, how is that even going to happen if I don’t even understand how India works or in what way it is actually evolving?
Your stock holding/updates are a reminder to me that a) there is an entire universe of stocks that exist in India beyond the Nifty 50 /Nifty 500 universe that can be considered credible or even be looked at b) often primarily positioned to cater to non tier 1 or Bharat only demand c) and that they are doing pretty well for themselves or atleast d) we are getting Q-o-Q level business and profitability insight into them in a way that is verifiable.
I’m certainly finding them to be a very useful and genuine resource to understanding how India actually works!
Thanks again, @ranvir
1 Like
Hi @ranvir Sir,
I am relatively new to forum and a regular reader of ur posts.. Thx for posting regular result updates… if I understand ur approach, you seem to invest in companies which are in growth trajectory… I am thinking of adopting similar strategy… my question what’s ur process of buying a new stock and selling one, if you don’t mind sharing… basically do u buy a stock as soon as you find a company starts reporting growth in numbers? Most of the time stock prices would runup post such results… do you wait for pullback and buy them or keep SIP regularly
Entero Healthcare -
Q2 FY 26 results and concall highlights -
Company is among the top 3 Pharma / Healthcare distributors in India. Company has a pan India presence via 113 ware houses across 47 cities and caters to 490 districts across 20 states
Company’s no of Hospital clients stand @ 2800+
Last 5 yr consolidated CAGR revenue growth @ 30 pc
Q2 outcomes -
Revenues - 1571 vs 1301 cr, up 21 pc
Gross margins @ 10.2 vs 9.4 pc
EBITDA - 62 vs 42 cr, up 46 pc ( margins @ 4 vs 3.3 pc )
PAT - 37 vs 26 cr, up 41 pc
H1 outcomes -
Revenues - 2975 vs 2398 cr, up 24 pc
Gross margins @ 10.1 vs 9.3 pc
EBITDA - 112 vs 73 cr, up 54 cr
PAT - 67 vs 47 cr, up 44 pc
Some comments from Q1 concall -
Company’s strategic playbook rests on pillars like -
(a) Disciplined inorganic growth ( have already made 50 + acquisitions )
(b) Organic scale up in underserved markets
(c) Deepening partnerships with Healthcare brands
For full year FY 26, company aims to reach EBITDA margins of 4 pc
Organised distributors account of < 10 pc of IPM as of today - naturally, the headroom for growth is huge
Have made a lot of investments in the tech platforms over last 2-3 yrs ( for the ease of their customers ie retailers and better inventory management for them ). Going forward is the time to utilise these investments and drive better efficiencies through them
Comments from Q2 concall -
No of customers now @ 85.3k vs 79.5k as on 30 Sep LY
In H1, IPM grew by 8.2 pc vs Entero’s topline growth of 24.1 pc ( organic growth in H1 was @ 14 pc, in Q2 @ 13 pc. Rest come from acquisitions )
Navigating the change in GST rates on generic medicines was a key challenge that the company faced in Q2 which it was able to transition smoothly
Closed 5 acquisitions in Q2. These 5 acquired firms / companies reported combined revenues of 545 cr in last FY
**Additionally - The company is acquiring an 80% stake in Bioaide Technologies for INR 31.13-36 Crore and a 51% stake in Anand Chemiceutics for INR 210-230 Crore ( subject to satisfactory closure of formalities and due diligence ) - both are Med Tech companies **
All the a/m acquisitions should add aprox 1000 cr to company’s topline once all the listed acquisitions are fully integrated with the company
Med Tech is a margin accretive space. Should aid their gross and EBITDA margins going forward. Its also a high growth area
The a/m acquisitions have been funded via - Internal accruals + some debt + company’s cash balances ( which stand @ 280 cr )
Revenue growth in H2 should be stronger than H1’s revenue growth of 24 pc - on the back of recent acquisitions
The a/m acquisitions in current FY have cost the company upwards of 400 cr. Company’s blended ownership in all the 7 deals listed above is aprox 64 pc
Anand Chemiceutics is operating with low double digit EBITDA margins
If the GST rate changes had not happened in Q2, company’s revenue growth would have been 1-2 pc higher
Once all these Med Tech acquisitions are integrated completely, full FY EBITDA margins for next FY should inch towards 5 pc ( vs 4 - 4.2 pc for current FY )
Company does make provisions for bad debts. Have made a provision of expected credit loss of 3 cr in H1
IPM growth in Oct was strong @ 11 pc
Disc: holding, biased, added recently, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
2 Likes
Insecticides India -
Q2 FY 26 results and concall highlights -
Revenues - 638 vs 627 cr, up 2 pc
Gross margins @ 34.5 vs 31.7 pc ( encouraging )
EBITDA - 89 vs 90 cr ( margins @ 14 vs 14.3 pc )
PAT - 59 vs 61 cr
Channel wise sales breakup -
B2C - 77 vs 84 pc
B2B - 19 vs 14 pc
Exports - 4 vs 2 pc
Breakup of B2C sales -
Premium - 65 vs 67 pc
Generic sales - 35 vs 33 pc
Company’s manufacturing facilities -
Shamli - Biologics Unit
Chopanki - Formulations Unit
Samba - Formulations Unit
Udhampur - Formulations Unit
Chopanki - Active Ingredients Unit
Dahej - 2 X Formulation Units
Dahej - Active Ingredients Unit
Sotanala - Upcoming Formulations + Active Ingredients Unit
Comments from Q1 concall -
At present, company has 16 Focus Maharana products ( vs 12 in FY 24 ). These r high growth, high margin products ( mostly with Pan India presence ). Maharatna products are currently smaller with regional presence. Aim is to keep graduating more products from Maharatna to Focus Maharatna category. These Maharatna + Focus Maharatna products have gross margins > 35 pc vs 15 pc for plain vanilla generics ( taken from LY’s concall )
For a product to be categorised as Focus Maharatna, it has to do an annual sales of > 35 cr with > 35 pc GMs
Maharatna + Focus Maharatna products grew by 20 pc in Q1
New product launch in Q1 FY 26 - Altair ( a herbicide for paddy crop - in-licensed from Japan Chemical Corporation, its an on patent product ) - this is their 7th in - licensed product from Nissan. Aim to clock sales of around 10-15 cr for FY 26 from this new Herbicide - Altair. Confident of ramping it upto 40 cr and more by FY 27. It’s a specialised ( but expensive ) product. Its available only to Insecticides India ( at the moment )
Launched - Sparkle, a broad spectrum Insecticide in Q2 ( in licensed from Cortewa Agriscience )
Dahej technical plant has gone live in Q2. Company expects to clock 100 cr in sales from this plant in FY 26 + 40-50 pc CAGR for next 3-4 yrs from this plant
Wrt Sothanala formulations unit - hope to start production in next yr’s kharif season. Sothanala technical plant should go live by end of next FY
Company is going to spend Rs 125 cr over next 2 yrs @ Sotanala to set up the AI + Formulations facility. This facility should have a peak revenue potential of aprox 500 cr
Comments from Q2 concall -
Q2 domestic demand was adversely affected by excessive rains. Q2 export demand from SE Asia, Latam was particularly encouraging
New launches in Q2 - Patented Fungicide - Amuse, Centran SC - an insecticide, Brahmos - another insecticide, Sparke - an in licensed broad spectrum insecticide ( sourced from Cortewa Agrisciences )
Centran SC is seeing very good demand. Should do well in H2. Other products expected to do well in H2 include - Shinwa ( an insecticide in-licensed from Nissan corporation ) and Torry ( a herbicide )
Focus Maharatna + Maharatna segments did not witness any volume growth in Q2 ( mainly due large sale returns in Herbicides segments due excessive rains ). Sales return in Q2 stood at 150 cr vs 100 cr in Q2 LY. However, this is a normal phenomenon and happens whenever there are extreme weather vagaries
Had earlier guided to bring down inventories down to 600 cr levels by end of current FY. That may not be achievable due a weak season in Q2. Company may close the year with Inventories @ around 800 cr levels
Company was still able to report growth in Q2 due aggressive hiring in sales / field force in the previous FY. Their teams did a lot of good work wrt demand generation / pushing sales
Have hired Mr Devendra ray as new COO ( Ex - PI Industries ) - a good move ( IMHO ) 
Company’s continued focus towards Focus + Focus Maharatna products is move that’s margin accretive in medium to long term ( should keep inching upwards in an increment fashion )
Most of the AIs ( > 70 pc ) that go into Maharatna + Focus Maharatna products are made in house or sourced through their MNC collaboration partners
Exports should hold up well in H2 as well
Backward Integration in AI manufacturing is a continuous process that the company engages in { they keep going back in terms of performing N-1, N-2, N-3, N-4 ( and so on ) steps - in house as the molecule’s traction keeps improving }
Should still be able to clock double digit growth for full FY ( despite going through a tough H1 )
Company believes H2 should be much better than LY due much better situation wrt moisture levels in the soil and higher reservoir levels
Disc: holding, biased, not a buy/sell recommendation, not SEBI registered, posted for educational purposes
3 Likes
Innova Captab -
Q2 FY 26 results and concall highlights -
Revenue - 380 vs 318 cr, up 19 pc
EBITDA - 56 vs 52 cr, up 8 pc ( margins @ 14.7 vs 16.3 pc ) - due steep rise in employee costs, other expenses due to operationalisation of new Jammu facility which commenced operations in Jan 25
PAT - 30 vs 35 cr
CMO revenues grew by 15 pc in Q2 and by 12 pc in H1 ( despite headwinds from falling API prices )
Branded generics grew by 31 pc in Q2 and by 43 pc in H1 - led by both domestic and international markets
Segmental breakup of revenues in H1 -
CMO - 515 cr
Branded generics - 216 cr
Comments from previous concalls -
Jammu plant is currently in ramp up phase ( it commenced operations in mid Jan ). Company expects capacity ramp up 40-50 pc levels in next 2-3 yrs ( optimum levels are about 75 pc )
Seeing good demand from CMO partners + good demand from branded business - both should help them quickly ramp up their Jammu facility
Company’s Jammu plant is eligible for Govt benefits like - interest rate subvention + GST incentives. Company aims to pass through some of the benefits of these incentives to their customers. This should help them gain volumes in a significant manner
Baddi’s capacities being used for domestic mkts are being vacated to cater to export demands. The domestic business is being shifted to new Jammu plant ( incrementally ) - this shift should be completed by Q4
Jammu plant shall break even @ PAT level @ annual sales run rate of 400 cr
Comments from Q2 concall -
In Q2, company’s Cephalosporin plant at Baddi was successfully inspected by UK MHRA
Exports contributed to 30 pc of company’s sales both in Q2 and H1
From Jammu facility, company has clocked 120 cr of sales in H1. Company is hopeful of clocking 280 cr of full yr sales from Jammu facility in full FY 26
Company is confident of sustaining a 20 pc revenue CAGR for next 2-3 yrs
Jammu facility has a revenue potential of 1400 cr / yr. Should be able to reach this kind of output from Jammu facility in 4 yr’s time
API prices seem to be bottoming out ( and rising gradually in most cases )
Disc: holding, biased, not SEBI registered, posted only for educational purposes
2 Likes
Borosil Ltd -
Q2 FY 26 results and concall highlights -
Q2 outcomes -
Revenues - 334 vs 273 cr, up 22 pc
EBITDA - 54 vs 47 cr, up 8 pc ( margins @ 14.9 vs 17.8 pc )
PAT - 23 vs 17 cr, up 25 pc
H1 outcomes -
Revenues - 560 vs 490 cr, up 14 pc
EBITDA - 101 vs 87 cr, up 16 pc
PAT - 40 vs 28 cr, up 44 pc
Segment wise breakdown of Q2 sales -
Glassware - 92 vs 61 cr, up 51 pc
Non Glassware - 122 vs 108 cr, up 13 pc
Opalware - 119 vs 105 cr, up 13 pc
Segment wise breakdown of H1 sales -
Glassware - 148 vs 116 cr, up 27 pc
Non Glassware - 216 vs 192 cr, up 12 pc
Opalware - 195 vs 181 cr, up 8 pc
Company continues to remain No 1 in Opalware segment in India ( via their brand Larah ). Company’s Opalware capacity stands @ 84 TPD - among the highest in India
Company’s 25 TPD Borosilicate plant gives them the advantages of backward integration in their glassware business
Setting up a new manufacturing facility in Rajasthan for Steel Vacuum Flasks and Containers. Capex outlay for the same shall be around 40 cr. It will have a capacity to produce 24 lakh units / yr. Should commence operations wef Q4 this yr. This facility should have an yearly revenue potential of 180 - 200 cr. Earlier the company was slated to set up 2 manufacturing lines. Now they have decided to go ahead with 3 manufacturing lines
Company has operationalised 2 solar power plants in Rajasthan of 16 MW capacity - now catering to 30 pc of company’s power costs. Will be spending another 75 cr to set up another Solar plant @ Bikaner with a capacity of 20 MW
Should be able to save 13-14 cr on power costs in FY 26 ( due solar energy ) vs FY 24 ( not FY 25 ). Once the new Bikaner solar power project going online, total savings will ramp upto 30 cr / yr ( vs FY 24 ). Post this, company’s power supply from solar sources shall rise to 65 pc with a further roadmap to reach 100 pc
Comments from Q2 Concall -
Net debt on books @ 5 cr
Advertisement and sales promotion expenses in H1 stood @ 38 cr - flat YoY
Power and fuel costs declined from 42 cr in LY to 36 cr in H1 current FY
Rising per capita incomes in India are driving the Indian consumers away from Plastics towards Glass + Opalware - a natural and sustainable tailwind for the company
Margin compression in Q2 ( despite better sales ) is because of 2 factors - (a) company has switched from Chinese vendors to Indian vendors for its traded products ( mostly in non glassware, non opalware category ), (b) loss of revenues in Hydra branded products due disruption in supply chain. Both these factors should normalise in next 12-18 months
Because of the a/m factors, the EBITDA margins in non glassware, non opalware segment have fallen from high single digits to mid single digits
Due supply shortage of Vacuum flask products, company did lose some sales in Q2 and is expected to lose sales in Q3 as well. The demand in this segment is outpacing company’s supply. The situation will only normalise when company’s new facility goes online in Q4
Present demand scenario / general consumer sentiment is much better than the weakness seen in Q1
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
Everyday Industries -
Q2 FY 26 results and Concall highlights -
Revenues - 387 cr, up 7 pc
EBITDA - 49 cr, up 3 pc
PAT - (-) 8 cr ( due exceptional charge of 37 cr taken in Q2 on account of ex-gratia paid to workmen on pre-mature separation + arbitration settlement costs )
Segmental performance in Q2-
Batteries - 257 cr, up 8 pc ( 92 pc of segmental revenues came from Carbon Zinc batteries, rest from Alkaline batteries ). Alkaline batteries grew by 68 pc in Q2
Flashlights - 47 cr, down 2 pc ( 43 pc of segmental revenues come from rechargeable batteries, which grew @ 16 pc in Q2 )
Lighting - 93 cr, up 10 pc
Segmental performance in H2 -
Batteries - 495 cr, up 9 pc
Flashlights - 115 cr, up 6 pc
Lighting - 171 cr, up 3 pc
Comments from Q2 concall -
Seeing better rural consumption trends
Seeing acceleration in Zinc prices in Q3
Did see some trade disruptions due change in GST rates on various products
Ultima Pro and Ultima range of alkaline batteries are seeing good traction - now command a combined mkt share of 16.3 pc in Alkaline battery segment
Maintaining 59 pc mkt share Carbon Zinc batteries
Rechargeable flashlights seeing good demand traction vs a decline in battery operated flashlights ( an Industry norm )
Seeing descent volume growth across most lighting categories
Jammu Greenfield facility should go commercial by end of FY 26
New product launches in H1 include - Electrical tapes, Wires, Extension boards and plugs, heating rods, Garden lights ( electrical accessories )
Mandatory BIS certification should act as a natural advantage for the company vs the unorganised / non compliant competition in the flashlights segment
Demand scenario in H2 looks good. Topline growth should be > 6-8 pc in H2 as well
Margins in alkaline battery segment are lower than Carbon Zinc segment. As the company’s alkaline battery facility goes live next yr and the facility ramps up, the margins in Alkaline batteries should keep inching upwards
Implementation of BIS norms in the flashlights segment should also be margin accretive for the company as it ll raise the compliance costs for the non-compliant players and they won’t be able to under cut the company’s product offerings
Going forward, as the topline growth picks up - the fixed costs component should decline progressively which should be margin accretive ( incrementally )
Post the settlement of a/m arbitration, embargo placed on the company wrt fund raising have been lifted ( a key trigger - in case they wish to aim for higher growth rates by venturing into adjacencies )
Post the reduction in workforce ( and payment of Ex-Gratia ) - company should be able to save aprox 8-9 cr / yr in employee costs
LY - company launched electric Mosquito Rackets. Their sales are picking up in a descent fashion
Disc: hold a small tracking position, not SEBI registered, biased, not a buy / sell recommendation, posted only for educational purposes
Surya Roshni -
Q2 FY 26 results and concall highlights -
Revenues - 1845 vs 1529 cr, up 21 pc
Gross margins @ 21.6 vs 22.1 pc
EBITDA - 141 vs 83 cr, up 69 pc ( margins @ 7.6 vs 5.4 pc )
PAT - 74 vs 34 cr, up 117 pc
Sharp improvement in EBITDA and PAT led by better realisations, operating leverage and favourable product mix - in the pipes segment. Lighting and consumer durables segment also witnessed strong growth led by double digit volume growth in LED lighting. Recently launched electric wires also seeing good traction
Segmental outcomes -
Lighting and Consumer Durables -
Revenues - 434 vs 395 cr, up 10 pc
EBITDA - 39 vs 36 cr, up 10 pc ( margins flat YoY @ 9 pc )
PBT @ 29 vs 26 cr, up 10 pc
Steel Pipes and Strips -
Revenues - 1411 vs 1135 cr, up 24 pc
EBITDA - 102 vs 48 cr ( margins @ 7.2 vs 4.2 pc )
EBITDA / Ton @ Rs5013 vs Rs 2901
PBT - 70 vs 20 cr
Volume growth @ 26 pc
Segment wise EBITDA / Ton in FY 25 -
GI pipes - Rs 6465
API pipes - Rs 9300
Black pipes - Rs 4833
Section Pipes - Rs 2645
CR pipes - Rs 2311
Pipe exports grew by 45 pc
Cash on books @ 250 cr. Have declared an interim dividend of Rs 2.5 / share
LED lighting ( as a whole ) continued to witness pricing declines
Guiding for a topline of 1900 cr and EBITDA of 180 cr for their Lighting and CD business for full FY 26. In H1, have clocked a topline of 831 cr and EBITDA of 70 cr in this segment. H2 guidance is indeed aggressive
Also witnessed an inventory loss of aprox Rs 500 / Ton in Q2
Capacity utilisation in Q2 @ 80 pc ( in Pipes segment )
API pipes saw a an 86 pc YoY growth ( led by Oil and Gas sector ). Demand in GI pipes segment remained tepid due excessive rains and delay in release of Govt funding
Full year volume guidance @ 9.8 lakh tons. Company clocked volumes of 3.8 lakh tons in H1
Company’s exports to EU, ME remain strong
H2 is always better for the company - both for their Lighting + CD and Pipes business - hence the aggressive guidance for H2 wrt both the business segments
Recently launched Wires business should clock > 150 cr in revenues in H2 ( production started in Q2, its a new segment that the company has entered )
Ongoing capex of aprox 1.25 lakh tons ( through brownfield expansions - split at various locations ) + Greenfield capex of 3.5 -4 lakh tons should take company’s overall capacity to 20 lakh tons in next 18-24 months
Have seen strong sales in their consumer durable and lighting sales in the month of Oct
Guiding for EBITDA/Ton of Rs 5600 - 5800 for H2 for the pipes division
Should be able to clock EBITDA of Rs 620 - 630 cr on a consolidated basis for full FY
Company’s sales of VAP products in steel pipes division currently stands @ 40-45 pc
Disc: holding, biased, not SEBI registered, posed for educational purposes
V2 retail -
Q2 results and Concall highlights -
Pre Ind AS results for Q2 -
Revenues - 708 vs 380 cr, up 86 pc ( Q2 volume growth @ 58 pc ). SSSG @ 10.3 pc
Gross margins @ 28 vs 27.2 pc
EBITDA - 44 vs 8 cr ( margins @ 6.3 vs 2.1 pc )
PAT - 25 vs 1 cr
Pre Ind AS results for H1 -
Revenues - 1340 vs 795 cr, up 69 pc
Gross margins @ 28.7 vs 28.2 pc
EBITDA - 97 vs 40 cr, up 142 pc ( margins @ 7.2 vs 5 pc )
PAT - 56 vs 20 cr, up 185 pc
Sales per Sq Ft / month in Q2 @ Rs 938 vs Rs 905 in Q2 LY
Total store count now @ 259. Opened 43 stores in Q2. Total retail area @ 27.94 lakh Sq Ft. Total stores opened in H1 @ 70
MRP sales contributed to 92 pc of total sales
Avg bill value @ Rs 899 vs 791 in Q2 LY
Avg selling price @ Rs 315 vs 269 in Q2 LY
States with bulk of V2 retail stores -
Bihar - 44
Assam - 17
NCR - 10
UP - 48
Jharkhand - 19
Karnataka - 18
MP - 20
Odisha - 30
WB - 13
Have already added 16 new stores in Q3 ( till date ). Store count as on the date of concall now stands @ 275
SSSG for H1 stood @ 13 pc
Have recently entered AP mkt. Seeing good response. Should enter TN, Telangana in near future
Looking out for a good tech partner who can help them sell online ( and leverage their inventory via a new sales channel ) with minimal costs. Hopefully, this should happen by next FY
Breakeven level of sales requirement for a new store are > Rs 500 psf / month. Most of company’s stores achieve this after 1 -2 months of operations
Oct sales have very been strong
Should close FY 26 with a total new store addition of 130 stores. If the sales momentum continues as in H1, should add another 150 stores in next FY
Have raised 400 via QIP. Have repaid debt worth 135 cr, used 165 cr for working capital and will be using 100 cr for general corporate purposes. Company aims to be the best pay masters for their vendors by ensuring timely payments to them and always ensuring good liquidity in their hands. In return, company gets good discounts from them
Even the new stores that the company has opened in non-core mkts like - Maharashtra, Gujarat, Haryana etc - are doing well
Current avg cost @ Rs 52 psf. For the next 80 stores ( MOUs that the company has signed up ), the avg rentals are Rs 48 psf
Early onset of winter is a good sign for the company. ASP and Gross margins for winter clothing is higher vs summer clothing
Company’s store managers and floor managers do get incentives ( like 10-30 pc extra salaries ) for achieving their sales targets. Hence the attrition is low. However, the attrition @ lower levels remains high - which is an Industry wide phenomenon
Sales of winter wear are exceeding company’s expectations and the company is facing stock shortages @ some of their stores. They r working overtime to resolve the issue
At present, the company is not looking to expand their Gross Margins. This is a deliberate strategy - to pass on max benefits to the consumers so as to keep the throughputs and sales velocity @ stores at levels far higher than their competitors
Disc: holding, added more recently, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
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Sandhar Technologies -
Q2 FY 26 results and concall highlights -
Revenues - 1270 vs 984 cr, up 29 pc
EBITDA - 118 vs 99 cr, up 19 pc
Other income - 39 vs 7 cr
PAT - 73 vs 40 cr, up 83 pc
Category wise breakup of H1 revenues -
2Ws - 67 pc
PVs - 14 pc
OHV - 12 pc
Others - 7 pc
Product wise breakup of H1 revenues -
Aluminium Dye Castings - 32 pc
Locking systems - 18 pc
Cabins and Fabrications - 11 pc
Assemblies - 9 pc
Sheet Metal - 17 pc
Vision Systems - 5 pc
Others - 7 pc
Consolidated debt on books @ 858 cr
Notes from Q2 concall -
Sandhar’s India business grew its topline by 33 pc and saw an EBITDA growth of 24 pc, PAT grew by 28 pc
Overseas business grew by 2 pc, EBITDA de grew by 12 pc ( however on a QoQ basis, losses from overseas operations have reduced by half )
Company’s all 5 JVs are now PAT positive
Company has started billing of EV battery chargers and Motor controllers ( their new product introductions for the EV segment ). Generated a revenue of 6 cr from this segment in H1. Should be able to generate a total of 15 cr from this segment for full FY
Locks and Mirrors are the highest EBITDA margin business in the company’s portfolio - followed by dye castings, followed by sheet metals business
Sundaram Clayton’s acquired business clocked an EBITDA margins of aprox 5 pc in Q2. Company is moving the acquired business’s equipment to new premises in Pune. Hence the margin profile of this business is expected to remain subdued in H2 as well. However, from next FY - company expects the Sundaram Clayton’s business to clock 9 - 10 pc kind of EBITDA margins
Company’s assembly business is focussed on Wheel Spokes segment - which is being replaced by alloy wheels ( expected to remain a de-growing business )
Overseas business are expected to be in green in H2 on back of slightly better demand + falling power costs in Europe
Company’s smart locks business has started. The volume off takes at present are slim. Expecting volumes to ramp up by Q4
HMSI is a key customer for the company ( contributing to 4.2 pc of their sales vs 3.7 pc in last FY ). Company supplies Sheet metal parts, Locks, Smart Locks and Dye Castings to HMSI. Company’s business with HMSI is also growing faster than the company avg
Sundaram Clayton’s business contributed to 95 cr and 103 cr to company’s revenues in Q1 and Q2
All of company’s JVs gives them a great opportunity to participate in technologies of the future. As and when these technologies are introduced in India, Sandhar would then be ahead of the completion by virtue of their investments in their JVs
Company’s cabin fabrication business did witness a slowdown in H1 due kicking in of new emission norms for OHVs. Should see a decent recovery in H2
Other income in Q2 came from sale of a land parcel
Should be clocking 10 - 11 pc kind of EBITDA margins in Q3 and Q4
Guiding for a topline of aprox 4850 cr for full FY 26 with 9 - 9.5 pc kind of EBITDA margins ( assuming 9 pc EBITDA margins, full yr EBITDA should be in and around 435 cr vs 383 cr in last FY )
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for educational purposes
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Elin Electronics -
Q2 FY 26 results and concall highlights -
Revenues - 374 vs 304 cr, up 23 pc
Gross margins @ 24 vs 24.8 pc
EBITDA - 20.4 vs 11.3 cr, up 80 pc ( margins @ 5.4 vs 3.7 pc - due lower employee costs and other expenses, as operating leverage kicked in )
PAT - 10.3 vs 4.8 cr, up 115 pc
Cash on books @ 94 cr
Segmental revenues -
Home appliances - 140 vs 83 cr ( seeing strong demand trends, also due early Diwali this year. Personal care segment also grew by a strong 27 pc )
FHP motors - 73 vs 74 cr
Precision components - 61 vs 66 cr
Medical cartridges - 9 vs 4 cr
Lighting - 47 vs 50 cr ( due volume declines from Signify, partially offset by addition of new customers. Have added 4 new customers in lighting segment, expecting a gradual ramp up. Expecting to add 2 more significant customers )
Flashlights - 6 vs 6 cr
Fans - 15 vs 9 cr ( sharp uptick in fans volumes on the back of BLDC fans )
Switches - 3 vs 2 cr
Capex spends in H1 -
Ghaziabad facility - 9 cr
Baddi facility - 4 cr
Goa facility - 2 cr
Capex lined up for H2 @ 65 cr for Bhiwadi facility + another 35 cr towards the scale up of a/m existing facilities
Guidance for FY 26 - Topline growth of 12-13 pc with EBITDA margins of 5.5 - 6 pc ( company has lowered its guidance because its exports to US have been hit by the ongoing tariff related issues ). Assumption - Full yr revenues and EBITDA may end up @ 1300 and 70 cr vs 1180 and 52 cr in last FY )
As the demand from new customers ramp up, lighting business should exit FY 26 on a stronger note
Medium appliance facility @ Bhiwadi will go live in next FY. New product additions to company’s portfolio that shall happen over next FY include - Airfryers, Oil Heaters, Chimneys, Coolers, OTGs ( to be made at their Bhiwadi plant )
Expecting revenues of 140 cr and 250 cr respectively from this facility in FY 27 and FY 28. Full revenue potential of this plant shall be 550-600 cr. Should be able to clock EBITDA margins of aprox 7 - 7.5 pc from medium appliance sales that company aims to do from this plant
Bhiwadi plant should go live in Mar / Apr 26
Hair dryers, trimmers, straighteners - all 3 saw good growth rates in Q2
Good growth in fans segment should continue going forward ( saying this based on the order books that they have for next 2-3 Qtrs )
Due excessive rains in Q2, company had to spend aprox Rs 50 lakhs more on their power costs due non availability of solar power. This was a drag on their Q2 profitability. Another drag on profitability in Q2 was - company resorting to Air Freighting due sudden surges in Demand which costed them an additional Rs 60 lakh
In case of a trade deal with US, company may end up clocking an additional 40-50 cr in sales
As BIS norms kick in, local manufacturing opportunities for products like - AC motors and Washing machine motors shall open up in India ( as the GoI fast tracks applications of Indian companies and delay import applications ). These 2 products are of great interest to Elin as a company
Disc: holding, added more recently, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
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Crompton Greaves consumer electricals -
Q2 FY 26 results and concall highlights -
Revenues - 1916 vs 1896 cr, up 1 pc
Gross margins @ 30.3 vs 31.9 pc - due rising commodity prices
EBITDA - 158 vs 204 cr, down 22 pc ( margins @ 8.3 vs 10.7 pc )
Exceptional item - (-) 20 cr
PAT - 75 vs 128 cr, down 41 pc
Segmental performance -
ECD -
Revenues - 13971 vs 1393 cr
EBIT - 145 vs 206 cr
Prolonged monsoons had an adverse impact on Fan sales. Commodity price pressures added to margin contraction. Have taken price hikes wef Nov 25
Pumps delivered mid teens growth led by Solar pumps
Have received an order of 445 cr for Solar roof top installation
Small home appliances also grew in double digits
Large home appliances witnessed a sharp slowdown led by erratic weather, competitive discounting and inventory challenges. However, their sales were up 34 pc on a QoQ basis. LDAs include - Coolers, Water heaters, TPW fans etc
Salience of premium offering in fans improved to 25.4 pc, up 180 bps
Lighting -
Revenues - 261 vs 253 cr
EBIT - 41 vs 27 cr
Lighting business witnessed high teen volume growth. However, revenue growth was @ 3.1 pc led by pricing pressures
Witnessed good growth in high mast and commercial indoor lighting
B2C lighting growth was led by Ceiling and Street lights
Butterfly -
Revenues - 293 vs 258 cr
EBIT - 22 vs 17 cr
Revenue grew by 14 pc, led by double digit volume growth in core categories, new product launches. EBITDA margins expanded by 60 bps to 9.5 pc
Comments from Q2 concall -
Have already garnered 6-8 pc mkt share in Solar Pumps business, within 2 yrs of launch ( an encouraging sign ). Similarly, Solar rooftops business is expected to grow rapidly - as is evident from the initial order flow. Both these r high ticket size, good margin businesses - should become a key growth driver going forward. An avg Solar rooftop installation costs about 2-2.5 lakh for a 3 KW unit
EBIT margins in company’s lighting business expanded by 480 bps - a very encouraging sign
Company has incurred an exceptional cost of 20 cr - due restructuring of their Goa manufacturing facility
Company has been investing and spending aggressively to improve its go to mkt strategies and advertising on Online Chanels
On a blended basis, company has hiked the prices of its fans portfolio by 1.4 pc
Current order pipeline wrt their Solar Pumps business stands @ 255 cr ( which is a substantial amount ). Solar pumps is one segment that’s growing @ 100 pc on a YoY basis
Company is planning to enter new / adjacent product categories. They did not disclose the category name due to competitive reasons
The Solar Rooftop order worth 500 cr that the company has should get executed within next 6-12 months
A lot of commercial TPW fans that company makes are used for drying crops. Since the crop output is expected to be good, this business should pick up going forward
Company aspires to scale up their Solar Pumps + Solar Rooftops business to 2000 cr + kind of annual run rate in next 24 months. Company believes, this is a sun rise business area for them
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
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