Ranvir's Portfolio

Q&A: Questions & Answers Portfolio Q&A
1860

Elecon Engineering -

Q1 FY 27 results and concall highlights -

Q1 outcomes -

Revenues - 521 cr, up 12 pc ( excluding the exceptional income of 25 cr earned in Q1 LY - due favourable settlement of arbitration awards )

EBITDA - 109 cr, up 4 pc ( margins @ 21 vs 22.6 pc, margins in Q4 were @ 21.2 pc )

PAT - 70 cr, flat YoY ( adjusted for exceptional income as mentioned above + the gains accrued on account of reclassification of Elecon’s investment in Eimco Elecon from an associate company to a financial asset )

Order intake @ 755 cr, up 23 pc YoY. Order intake in Q4 was @ 550 cr ( seeing significant uptake in order intake in Q1 )

Segmental performance -

Gears -

Revenues - 416 cr, up 16 pc

EBIT - 75 cr, up 14 pc

Order intake @ 570 cr, up 19 pc

Open orders @ 1053 cr, up 46 pc

Revenue growth + Order intake in gears division showed significant uptick

MHE -

Revenues - 105 cr, down 3 pc

EBIT - 27 cr, down 25 pc

Order intake @ 185 cr, up 38 pc

Open orders @ 475 cr, up 19 pc

Healthy orders intake + strong inquiry pipeline point towards better performance going forward

Notes from previous concalls -

Company shall incrementally focussing on LatAm, Russia, ME and EU for their exports business

Company commands 40 pc mkt share for their products in India ( among the organised players )

Revenue mix between engineered ( custom made ) : standard ( catalogue ) products @ 52 : 48. Custom made products command higher margins

Expecting bigger orders from Indian Navy in FY 27 ( for equipment supplies to new generation A/C carriers and Corvets )

Don’t foresee acute competition from China as company’s reputation wrt after sales service is better than Chinese players

The cash on books is earning aprox 8 pc / yr kind of returns. Company remains open to both inorganic acquisitions / organic expansions

Expecting to grow in FY 27 over FY 26 - can’t pin point the amount / extent of growth for FY 27

EBITDA margins shall only improve once company’s capacity utilisation improves

Notes from Q1 concall -

Export revenues ( for gear division ) grew strongly @ 37 pc YoY

Overall business environment for gears division looks good - providing good visibility for the year ahead

MHE business de-grew in Q1 due to project execution delays. Thankfully, order intake for MHE division in Q1 saw acceleration

Export revenues in Q1 ( across both divisions ) stood @ 151 cr vs 124 cr, up 22 pc

EBITDA margins showed resilience despite sharp spikes in input prices

Consol order intake in Q1 @ 755 vs 614 cr YoY, up 23 pc

Consol open order book @ 1518 cr, up 36 pc YoY

Gross margins @ in Q1 stood @ 45.5 vs 49.9 pc in Q1 LY - showing a significant compression of 4.4 pc - attributed to steep hike in RM prices + some competitors not allowing price hikes as they were sitting on lower cost inventories + slowdown in MHE division. Company shall begin to pass on the price hikes wef Q2

Export order intake for Q1 @ 194 cr, up 63 pc YoY

Open export orders @ the end of Q1 @ 256 cr, up 73 pc YoY

Net cash on books @ 700 cr

Capex guidance for FY 26-28 @ 435 cr ( 400 cr towards gears division + 35 cr towards MHE division ). Out of this, 120 cr have already been spent

Guidance for FY 27 - low double digit revenue growth + EBITDA margins similar to FY 26 ( ie @ around 21.5 pc - adjusted for one off’s )

Steep decline in MHE division’s margins due - inferior sales mix, loss of operating leverage + higher RM costs

Export margins are slightly better tan their margins on domestic sales. Increasing share of exports is thus beneficial

Expecting 22 -23 pc as sustainable EBITDA margins for the MHE division over medium term

Growth in exports in Q1 is mainly attributable to geographies of ME + US ( in sectors like cement, mining in ME )

Steep RM price inflation is making them cautious wrt their guidance for FY 27. Hence only guiding for low double digit revenue growth despite strong order book and record enquiries ( as steep RM prices may cause some delays in execution and delay in conversion from enquiries to orders )

Should see meaningful pickup in MHE division ( vs the sluggishness seen in Q1 ). Almost all of MHE business is custom made

Breakup of export revenues for FY 26 -

66 cr - ME

102 cr - US

101 cr - UK

171 cr - EU

22 cr - Singapore

Have taken price hikes for the all fresh orders that they have received in Q1

A large part of company’s business services PSU companies and is dependent on govt spending. Any macro economic challenges ( like Tariffs / Wars ) does effect their business

Seeing better acceptance of price hikes from the mkt in Q2. The same was not the case in Q1

Low double digit growth guidance given by the company also takes into account the re-ignition of tensions between US and Iran ( as of Mid July ). Its a conservative guidance

Expect revenue growth to pick up meaningfully wef FY 28. Are backing it up with aggressive capex spends ( as mentioned above )

Have again ( like in Q1 ) lost sales of aprox 70 cr due delay in receipt of orders and hence execution. This should accrue to the company in Q2

Disc: holding, biased, ready to be patient here, not SEBI registered, not a buy/sell recommendation

1861

FedBank Fin Services -

Q1 FY 27 results and concall highlights -

Company’s AUM / Avg ticket size as on 30 Jun 26 -

Gold loans - 11.19k cr / 2.3 lakh

Medium Ticket LAP - 5.85k cr / 75 lakh

Small Ticket LAP - 3.91k cr / 15 lakh

Segmental disbursements / LTV in Q1 -

Gold loans - 6087 cr / 69 pc ( since these are short tenure loans )

MT LAPs - 529 cr / 53 pc ( vs a disbursal of 632 cr in Q4 LY )

ST LAPs - 144 cr / 53 pc ( vs a disbursal of 289 cr in Q4 LY )

Segmental yeilds -

Gold loans - 17.8 pc

MT LAPs - 12 pc

ST LAPs - 15.1 pc

Total no of branches now @ 757

Gold loans AUM on 30 Jun 26 was @ 6.332k cr ( vs 11.19k cr at present )

ST + MT LAP AUM on 30 Jun 26 was @ 9.366k cr ( vs 9.946k cr @ present )

Gold loan AUM per branch @ 17.7 cr vs 13 cr in Q1 LY. No of gold loan branches @ 632

Consol yeilds @ 16.7 pc

Consol COFs @ 8.1 pc

Consol spreads @ 8.6 pc

Off book assets in gold loan portfolio @ 15 pc

Off book assets in LAP portfolio @ 31 pc

78 pc of LAP loans have been given to customers with CIBIL > 700

Q1 P&L outcomes -

NII - 371 vs 268 cr, up 39 pc ( up 7 pc QoQ )

Other income - 26 vs 31 cr ( vs 29 cr QoQ )

Operating expenses - 210 vs 174 cr, 21 pc ( down 2 pc QoQ )

Operating profit - 187 vs 125 cr, up 50 pc ( up 15 pc QoQ )

Credit cost - 34 vs 24 cr ( vs 28 cr QoQ )

PAT - 114 vs 75 cr, up 52 pc ( up 14 pc QoQ )

Asset Quality -

GNPAs @ 1.6 vs 2 pc ( vs 1.9 pc QoQ )

NNPAs @ 1 vs 1.2 pc ( vs 1.3 pc QoQ )

Return ratios -

RoA @ 2.6 vs 2.3 pc ( vs 2.6 pc QoQ )

RoE @ 15.4 vs 11.6 pc ( vs 14 pc QoQ )

Notes from previous concalls -

Previously, the company had not invested adequately in their collection teams. ST LAP is a collections heavy business. Company has corrected this over last 12 months by rapidly expanding their internal collections team. Should see much better collections and asset quality going forward in their LAP vertical

Cost / Income in FY 27 shall start to improve meaningfully vs FY 26 as the operating leverage keeps kicking in

Small ticket LAP should turn around wef next FY. Company is far more confident vs LY. Their expanded recovery teams are now in place and are relatively experienced by now. Growth should now come back in this segment

Aim to keep growing their AUM @ 20-25 pc over medium term

Notes from Q1 concall -

Company has deliberately started to dial down on direct assignment on loans. They started reducing the same in FY 26 and shall continue to do so in future as well

AUM in Q1 grew by 34 pc YoY and 5 pc on a QoQ basis ( led by Gold loans which grew by 77 pc YoY )

Credit cost @ 0.8 pc ( below their stated goal of keeping them bellow 1 pc )

Gold loan LTV @ 69 pc - a little elevated due recent fall in gold prices. Their origination LTV are lower @ around 62 pc or so

Seeing steady decline in their Opex / AUM ratio. Clearly, operating leverage has started to play out

Cost / Income @ 52 vs 57 pc in Q1 LY - substantial improvement

Assuming flat gold prices from hereon - expecting a Gold loan AUM growth of > 25 pc for full FY ( FY 26 ending AUM for gold loans was @ 10.3 k cr vs 11.2 k cr @ the end of Q1 ) - on the back of tonnage growth + higher LTVs

LY, as the prices were rising - company kept reducing their LTV. This yr, since the prices r falling, they r okay with some increase in LTV

ST LAP branches @ aprox 200 ( these branches also disburse gold loans )

Disbursements in MT and ST LAP continue to be on the slower side. Still aim to grow the AUM of LAP ( MT + ST ) by > 15 pc in FY 27 vs FY 26. Seeing some pressure on yeilds in this line of business ( ie LAPs )

As per new RBI guidelines- if an originator has to sell bullet Gold Loans, the max LTV of 85 pc shall also include the annual interest ( in addition to the principal being disbursed ). This effectively reduces / suppresses the real LTV

Hence the company has stopped originating fresh bullet loans and are now originating loans with monthly/Qtrly interest payments

Aim to add 200 branches in FY 27. In Q1, have identified a number of new locations ( did not open any new branches in Q1 ). Should see a lot of fresh openings wef Q2

Not seeing any stress on their loan book due prevailing macro economic challenges

Are already present in 18 states. Should be opening more branches ( as guided above ) and penetrate deeper into these existing states

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes

1 Like
1862

Orient Electric -

Q1 FY 27 results and concall highlights -

Revenues - 950 vs 769 cr, up 23 pc

Gross profits @ 283 vs 250 cr, up 13 pc

Gross margins @ 29.8 vs 32.6 pc ( sharp contraction ). GMs in Q4 were @ 31 pc

EBITDA - 66 vs 46 cr, up 44 pc ( margins @ 7 vs 6 pc - due slower growth in employee and other expenses ). Margins in Q4 were @ 8.2 pc

Exceptional items - (-) 4 vs NIL

PAT - 31 vs 17 cr, up 80 pc

Segmental performance -

ECD -

Revenues @ 669 vs 545 cr, up 23 pc ( vs 661 cr in Q4 )

EBIT @ 58 vs 37 cr ( vs 75 cr in Q4 )

Gained mkt share in fans

BLDC fans grew @ 38 pc

Took further price hikes in Q1 ( had taken a 6 pc price hikes in Q4 as well )

Exports also grew in double digits

Lighting and Switchgears -

Revenues - 281 vs 224 cr, up 25 pc ( vs 287 cr in Q4 )

EBIT @ 42 vs 39 cr ( vs 40 cr in Q4 )

Premium mix in lighting @ 60 pc ( vs 56 pc YoY )

Switchgears and Switches continued to grow in double digits

Notes from Q1 concall -

Saw good demand revival in cooling products after a weak summer LY

Wires grew by > 200 pc YoY ( on a low base )

Fans grew in high double digits. Geysers and Irons too grew in double digits

Continued expanding their DTM reach - adding 3600 under the DTM program

Net cash on books @ 133 cr. WC @ 15 days

Aim to be operating in the 32-24 pc gross margin band over medium term. Short term challenges due ongoing war however remain

Currently selling wires only in North and East India - where the company is already strong

Should be able to clock double digit margins in next 2-3 yrs ( from 7 pc @ present ). That would be a big trigger for bottomline growth

Expecting Q2 GMs to be better than Q1 - as they have taken another round of price hikes in Q2

Other expenses were elevated in Q1 LY due their advertisement commitments made in IPL ( LY )

Africa, ME, EU and SAARC are their targeted export markets

B2C lighting grew in double digits. B2B lighting business grew in high single digits

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes

1 Like
1863

MedPlus Health services -

Broad Brush highlights from Q1 results -

Opened 146 net new stores in Q1 ( net of closures ). Added 218 stores in Q4 FY 26

Should be able to open a total of 800 stores in FY 27 - taking the store count to > 6000 stores from 5470 at present

Aprox 27 pc of their stores have been operational for < 2 yrs. Rest 73 pc fall under the category of mature stores

Avg store size @ 540 Sq Ft

Private label sales ( Pharma + FMCG ) in Q1 @ 10.7 pc + 9.3 pc = 20 pc

Branded sales ( pharma + FMCG ) in Q1 @ 63.8 + 8.9 = 72.7 pc

Others segment ( membership fee + advertisement fee + data fee etc ) contributed to 7.3 pc of company’s sales

Stores > 12 months old clocked store level EBITDA margins of 10.4 pc. Subtracting other costs ( like marketing, corporate overheads etc ), these stores would have clocked EBITDA margins of 4.3 pc vs 3.2 pc margins clocked by the company’s pharmacy operations

Q1 gross margins @ 24.5 pc vs 26.1 pc YoY - also resulting in steep correction in EBITDA margins from 4.7 to 3.5 pc

OCF in Q1 @ 125 cr vs Q1 EBITDA of 65 cr - very strong OCF generation continues

Cash on books 621 cr

Were previously pushing the private labels in an aggressive manner. Have moderated those efforts now ( now that they have built descent scale iro their private labels ). They don’t want to push them too hard and annoy the customers

Product wise gross margins -

Branded Pharma - 13-14 pc

Private label Pharma - 65-70 pc

Private label FMCG - 25-28 pc ( vs 9-10 pc for branded FMCG products )

Company generally offers a 15-20 pc discount on MRP on most pharma products

Q1 Diagnostic sales @ 38 vs 30 cr YoY

Q1 Diagnostics EBITDA margins @ 17.8 vs 15.3 pc YoY

Company sells memberships / subscriptions to customers for a fixed fee. Revenue is recognised when they use company’s diagnostics facilities. Company already has aprox 2 lakh members. They sold aprox 660 subscriptions / day in Q1 FY 27

Spend aprox 10 lakh / outlet ( on fixtures, fittings etc ). Also spend similar amounts on a franchise store. In franchise stores, the franchise buys the inventory, pays the rent etc. The gross margins in a franchise store are distributed in the ratio 30:70 ( aprox ) in favour of the franchise

Have started pushing the franchise model aggressively only post 2025. Opened 310 franchise stores in FY 26 and 131 in Q1 FY 27 ( out of a total of 146 outlets )

Once they r able to successfully demonstrate success in the franchise model, they can really scale up their business in a more aggressive manner

Will continue to focus on tier -2,3,4 cities for expansion over medium term. They believe, there is tremendous headroom here. The online sales that they drive from their stores - is presently viewed as an additional source of convenience for their customers. At present, 5-6 pc of their pharmacy sales come from online orders

Their popular private label brands include - WynClark Pharma ( for generic pharma products ), EatRite ( foods ), Avelia and Urbania ( home and personal care )

They sell Daipers under their private label brand Kiddos ( and other kids accessories ). Its supplies were disrupted in Q1. Expecting the supplies to be restored in Q2. The private label non-pharma sales should again start showing growth wef late Q2/Q3. Also, Q1 is always seasonally weak for their fmcg sales. Q4 is always much stronger - hence the sequential decline. Otherwise, their private label FMCG has grown on a YoY basis by 30 pc

24 of company’s stores are moving from COCO to Franchise stores. These stores are being handed over to senior employees of the company as a reward for their hard work

Have also opened aprox 50 large format stores ( over last 1 yr or so, aprox 1000-1200 Sq Ft ) - offering a wider assortment of branded and private label products

Out of a total 800 stores that the company intends to open in FY 27 - split between COCO : Franchise stores shall be around 50:50

Promoter holding @ 40.3 pc - out of which 59 pc is pledged. This is one of the overhangs on the company’s stock price

Gross margin compression / EBITDA margin decline is because of percentage decline in private label Pharma sales vs Q1 LY ( from 13.4 pc of sales to 11.5 pc of sales ). Private label Pharma has the best Gross margins among all their product segments. In addition, margins took a 50 bps hit due greater contribution of sales from Franchise operations

On the other hand, private label FMCG sales improved from 9.1 to 10.1 pc of company’s pharmacy sales

Expecting to bump up their EBITDA margins to 5.2 pc for full FY 27. EBITDA margins for full FY 26 were @ 5.3 pc. EBITDA Margins trajectory projected for Q2, Q3, Q4 by the management is 5.3 pc, 5.6 pc and 5.6 pc respectively

Company aims to achieve this margin expansion / recovery by -

Tweaking their discount structures

Increase in membership fee from Rs 99 to Rs 149 / member

Better sales training for employees to be able to sell private label products more effectively

Extracting better discounts / deals from their suppliers

Optimising employee costs

Disc: hold a small position, not SEBI registered, biased, posted only for educational purposes

1864

Mankind Pharma -

Q1 FY 27 results and concall highlights -

Revenues - 4031 cr, up 13 pc

GMs @ 72.8 vs 70.5 pc

EBITDA - 1060 vs 850 cr, up 25 pc ( margins @ 26.3 vs 23.8 pc - strong margin expansion )

PAT - 574 vs 445 cr, up 29 pc

Segmental revenues -

Domestic pharma revenues - 3180 cr, up 11 pc ( secondary growth was stronger @ 13 pc ). Chronic share @ 39.6 pc

Their respiratory, Cardiac ( up 19 pc ), Anti diabetic ( up 13 pc ) grew strongly. VMN, Gynae, Gastro portfolios also grew faster than IPM

Anti infectives grew @ 3.7 pc vs (-) 1.1 pc in Q1 LY

Domestic OTC revenues - 246 cr, up 4 pc

Export pharma revenues - 605 cr, up 29 pc

CFO in Q1 @ 817 cr

Q1 capex @ 198 cr

Net Debt @ 3377 cr vs 3932 cr on 31 Mar 26

Notes from previous concalls -

Expect finance costs to fall further ( substantially ) in FY 27 as company generates a lot of cash and can keep knocking off debt aggressively

Setting up a new BioTech facility near Vadodara. Guiding for a capex range of 800-900 cr for FY 27

Aim to pay off all the acquisition related debt by end of FY 28. This would bump up the PAT over next 2 yrs - as debt comes down progressively

AntiD 300mcg/ml Injection ( sold by BSV ) is indicated to prevent infections. It prevents antibodies from forming after a person with Rh-negative blood receives a transfusion with Rh-positive blood or during pregnancy when a mother has Rh-negative blood and the baby is Rh-positive. Company sells these via 2 brands in house brands ( Trinbelimab and Rohclone ). Company’s products are the only products avlb in this space in India ( minus the imported substitutes ). These r growing @ mid teens levels. Currently clocking aprox 200 cr / yr. Aprox 5 pc of women in India face this issue. So the addressable mkt is huge

Notes from Q1 concall -

Q1 - domestic volume growth @ 4.7 pc

Strong double digit ( mostly in excess of 20 pc ) clocked by brands like - Combihale, Symbicort, Telmikind family, Glizid ( oral antiDiabetic), Foligraf ( infertility treatment ), Humog ( infertility treatment ), Nobeglar ( Insulin Glargine )

Company’s chronic portfolio grew by 15 pc in Q1 in domestic mkt

Acute portfolio grew in line with IPM ( @ 10 pc )

Fin cost in Q1 @ 110 cr vs 142 cr LY - due debt reduction

Qtrly ammonisation being charged on account of BSV’s acquisition @ 112 cr ( aprox ). IE an annualised run rate of 450 cr / yr

In next 4-5 yrs, aim to ramp up the share of business from Chronic therapies in India to 50 pc from 39-40 pc @ present

Should continue to outperform IPM + grow in at least double digits over next 9Ms of FY 27

BSV’s business grew by 21 pc in Q1 ( 17 pc in domestic mkt, 25 pc in export mkts )

May see GM compression in Q2 due RM inflation ( should still remain above 71 pc )

Discontinued their cash and carry business in the OTC. Hence the growth rate in the OTC business in Q1 was muted. Should see double digit growth in this segment wef Q2

Mankind’s launch in Semaglutide mkt has been far more measured. Aren’t going in with Vials + Orals. Have only launched Pens. Plus they r also not pricing their products too aggressively. They r ranked no 7 in anti diabetic mkt

Holding onto their EBITDA margin guidance of 25.5-26.5 pc for FY 27

BSV’s domestic : export sales @ 50:50 ( roughly )

Seeing very strong growth in the IVF business in India ( because of BSV acquisition )

Disc: holding, have reduced my holdings recently, not SEBI registered, not a buy/sell recommendation

1 Like
1865

Thanks for the helpful updates as usual :folded_hands:

Would it be possible to share brokerage consensus estimates vs current market price with the updates? Given that growth is usually front-loaded in terms of P/Es this would be a very useful reference.

Or, could you share a reliable free source where brokerage consensus estimates can be looked up, assuming it exists?

1866

Artemis Medicare -

Q1 FY 27 results and concall highlights -

Q1 outcomes -

Revenues - 287 cr, up 13 pc

EBITDA - 56 cr, up 36 pc ( margins @ 19.6 vs 16.2 pc )

PAT - 31 cr, up 48 pc

Current facilities -

Artemis Gurugram - 540 beds. Another 50 + 50 beds are expected to come on stream in H1 FY 27 ( these 100 beds are ready - shall be commissioned as and when the occupancy of previous 540 beds improve ). Plus another 100 + 200 = 300 beds are expected to be commissioned at the same site in FY 28 and FY 29 respectively ( due allotment of extra FAR by Govt + purchase of extra FAR by the company )

This extra FAR purchase would enable them to set up tower 4 @ Gurugram site

Also manage 2X 100 bedded hospitals @ Mauritius

A 300 Bedded Hospital @ Raipur went live in first week of July

Rest of the beds are distributed between - Daffodils ( South Delhi, Jaipur, Gurugram ) - Aprox 40beds ( Luxury mother and Childcare hospitals ) + Artemis Lite ( South Delhi, Gurugram ) - aprox 40 beds

Notes from previous concalls -

Expecting continued expansion in absolute EBITDA in FY 27 led by strong occupancy gains that are expected @ Gurugram + the addition of 100 new beds ( @ Mauritius ). This should offset the initial losses as the Raipur facility should take 12-15 months to ramp up

Have commissioned 150 beds @ Raipur. Shall again commission another 150 beds once the occupancy of previous 150 beds improve

Confident of clocking 70 pc occupancy @ Gurugram by Q2 - that would unlock their additional bed capacity that’s already in place

Company is going to have the first mover advantage @ a promising market like Raipur. Its densely populated + has high per capita + absence of national level players at the moment

Expecting Gurugram hospital to grow topline by 15-17 pc in FY 27. Expecting similar growth from Gurugram in FY 28, 29 as well. Incremental revenues @ Gurugram should clock 30 pc kind of EBITDA from hereon

Have EWS commitment @ 20 pc at Gurugram, 10 pc at Delhi, expecting 10 pc at Raipur

Had previously raised 330 cr via Convertible Debentures. Shall be converted to equity in H2 current FY. Shall lead to an equity dilution of aprox 12 pc ( @ a conversion price of Rs 175 / share ). Out of these, 137 cr have been deployed in the business. Rs 193 cr lie parked in FDs

Capex @ Delhi -

South Delhi capex estimates - First 450 beds @ 350 cr - Phase 1. Another 200 beds @ 150 cr - Phase 2. Total @ aprox 500 cr

Have approved another 700 cr of fundraise via QIP to fund their South Delhi expansion ( waiting for launch of QIP and announcement of price / share )

Notes from Q1 concall -

Q1 ARPOB @ 86k vs 84.5k in Q4 ( due better case mix - as in more complex procedures etc )

Q1 occupancy @ 66 pc vs 64pc in Q4

Artemis Shanti hospital @ Raipur went live in Q1. It’s a super speciality hospital ( fully operationalised in the end of July ) - should start to break even in 15-18 months

Gurugram hospital should be able to achieve 23-24 pc kind of EBITDA margins in next 2-3 yrs ( vs 19.6 pc clocked in Q1 FY 27 - by Gurugram hospital )

As occupancies inch towards 70 pc @ Gurugram, they are ready to unlock 50 + 50 more beds in phases - to prevent patient denials. Should happen in Q2 or Q3

By end of FY 27 / early FY 28 - they should again be hitting occupancies of > 70 pc on the expanded base of 640 beds. At this time, they ll unlock another 100 beds ( as they have been allowed with extra FAR ). This takes them to 740 beds in FY 28. Finally in FY 29 - they are expected to operationalise another 200 beds @ tower 4 ( due purchase of extra FAR ) taking the total beds to around 950 at their Gurugram site

Capex for tower 4 should cost them 120 cr

Raipur facility should add aprox 3 cr in additional depreciation / qtr wef Q2

Capex estimates for FY 28+29+30 = 800 cr ( includes capex towards Tower 4, Raipur, SouthDelhi’s hospital )

Capex for tower 4 should cost them 120 cr

Raipur facility should add aprox 3 cr in additional depreciation / qtr wef Q2

Capex estimates for FY 28+FY 29+FY 30 = 800 cr ( includes capex towards Tower 4, Raipur, SouthDelhi’s hospital )

Raipur Hospital’s insurance empanelment should happen in next 2 months. Have appointed an intermediary - so that cashless claims can be processed even now. The intermediary can recover the money from insurance companies when the empanelment eventually happens

Should hit 70 pc occupancy @ Gurugram in Q2

Big picture - After Gurugram reaches 950 beds and starts hitting 70 pc occupancies on the same ( say in 2030-31 or so ), this hospital should clock 2000 cr / yr in topline with around 24 pc kind of EBITDA margins

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purpose

1 Like
1867

Electronics Mart India Ltd ( BLOCKBUSTER RESULTS ) -

Q1 FY 27 results and concall highlights -

Revenues - 2419 cr, up 39 pc ( LY had exceptionally weak summers )

Gross margins @ 17.2 vs 14.6 pc ( strong margin expansion )

EBITDA - 239 cr, up 118 pc ( margins @ 9.9 vs 6.3 pc - massive margin expansion )

PAT - 121 cr, up 458 pc ( PAT margins @ 5 vs 1.2 pc )

Total no of stores -

North cluster ( in and around NCR ) - 36

Hyd + Telangana - 118

AP - 72

Kerala - 1

Grand total - 227

No of stores added in Q1 @ 4 stores

No of mature stores @ 96 ( > 4 yrs old ) - contributing to 1628 cr in sales, 183 cr in EBITDA @ 11.2 pc margins

No of non mature stores @ 131 ( < 4 yrs old ) - contributing to 676 cr in sales, 55 cr in EBITDA @ 8.1 margins

Cluster wise revenues, SSSG -

Hyderabad - 1293 cr, up 34 pc ( SSSG @ 32 pc )

Telangana - 344 cr, up 48 pc ( SSSG @ 48 pc )

AP - 446 cr, up 62 pc ( SSSG @ 62 pc )

Delhi NCR - 206 cr, up 29 pc ( SSSG @ 15 pc )

North cluster EBITDA margins @ 4.9 pc ( sales grew by 29 pc )

South cluster EBITDA margins @ 10.9 pc ( sales grew by 40 pc )

Notes from Q1 concall -

A good AC season ( like in Q1 ) also brings in new customers for the company which they expect to return to buy other items like large appliances, mobile phones, electronics etc

Consol SSSG @ 34 pc

Demand in core mkts ( South cluster ) continues to remain strong

Non mature stores clocking 8.1 pc margins is an extremely encouraging indicator

WC says @ 43 days on 30 Jun vs 72 days on 31 Mar 26 - massive improvement over the course of Q1

Should be able to grow full yr revenues by 18-20 pc ( management admitted - its a conservative guidance )

WB - earmarked as next state for opening new stores

GMs for full FY should be 15-15.5 pc ( vs 14.4 pc for FY 26 ). GMs in FY 25 were @ 14.6 pc

Q1 was good for all the players in southern India. This was not the case in Northern India. Northern mkt was not buoyant. Company’s growth is mainly attributable to snatching away the mkt share away from unorganised players in the Northern mkts

Management is guiding for 7.5-8 pc EBITDA margins for full FY + a 18-20 pc revenue growth. That should yeild a PAT in the range of 250 cr

Guiding for a an interest cost of 140 cr or so for full FY vs 154 cr in last FY

Should open 5 stores in Kolkata by Diwali. Should reach a figure of 10 stores in / around Kolkata by 31 Mar 27

Capex guidance for FY 27 @ 100 cr ( should open a total of 25 odd stores in current FY - 10 in WB and 15 outside WB ie in existing clusters ). Looking to buy 10 odd property premises in Kolkata region in next 2 yrs. That should cost another 50 cr over FY 28. Post FY 27, should start to expand in Darjeeling, Siliguri etc

Have sold a lot of accessory products like - headphones, audio systems etc - because of which the ASP hasn’t grown much for the company but the no of bill cuts have grown rapidly

Should be able to open a total of 30 stores in WB by end of FY 28

Payback time in WB should be shorter than NCR - as the rentals are lower, competition is lesser

15 stores to be opened outside WB for FY 27 - should be around 10 in NCR, 5 in South cluster

Avg capex per store ( of size 10k sq ft ) - 2.5 ( interiors, fixtures ) + 2.5 ( inventory ) = 5 cr. They r comfortable with paying 3 pc of revenues as rentals, 1 pc of revenues as employee costs ( while opening a new store )

Disc: core investment position, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes, biased

1868

Crompton Greaves Consumer Electricals -

Q1 FY 27 results and concall highlights -

Revenues - 2235 vs 1988 cr, up 12 pc

Gross margins @ 31.2 vs 32.2 pc ( down by 100 bps )

EBITDA - 224 vs 197 cr, up 14 pc ( margins @ 10 vs 9.8 pc )

EBIT @ 179 vs 160 cr, up 12.2 pc ( EBIT margins @ 8.9 vs 8.8 pc )

PAT - 143 vs 124 cr, up 15 pc

Segmental outcomes -

ECD -

Revenues - 1754 cr, up 10.6 pc

EBIT - 237 cr, up 12 pc ( EBIT margins @ 13.5 vs 13.3 pc )

Fans portfolio faced supply constraints in Q1. BLDC fans grew by 44 pc

New launches - B2C solar pumps, CVM ( centrifugal vertical multistage ) pumps for HP applications

Lighting -

Revenues - 269 cr, up 15.4 pc

EBIT - 32 cr, up 9.2 pc ( EBIT margins @ 11.9 vs 12.8 pc )

Margin compression seen in B2B business. B2C business saw margin expansion

Butterfly -

Revenues - 214 cr, up 14 pc

EBIT - 9 cr, up 19 pc ( EBIT margins @ 4.2 vs 3.9 pc )

Saw mkt share gains in pressure cookers, mixer grinders, induction cooktops

Butterfly’s EBITDA margins stood @ 7 vs 6.8 pc on a YoY basis

Company is among top 2 players in India in - Fans, Water heaters, Pumps and Kitchen appliances ( along with Butterfly )

Shall be focusing on MBOs to push SDAs under Crompton and Butterfly brands. For LDAs and RHION branded products - shall focus more on Crompton EBOs. Have already opened 70 Crompton EBOs across the country. They sell premium large appliances under the Cromption Rhion brand name

Q1 concall highlights -

Water heaters in Q1 grew in double digits

Have seen a strong beginning to Q2 in the fans segment

B2B margin in lighting segment were due to pre-contracted pricing arrangements that the company had with some of its customers

Faced extreme RM inflation across their product categories in Q1. Have taken high single digit to low double digit price hikes across their product portfolio. These price hikes cover aprox 80 pc of input price inflation

Have lost 200 cr in sales ( in the fans segment ) due to the supply disruptions faced in Q1 ( ie 9 pc of topline !!! ) - ( adjusted for this, topline would have grown by 22 pc or so + the PAT would ve been around 185 cr or so )

Solar pumps + rooftops - have started getting B2C orders as well ( in addition to B2G orders ). Should see brisk execution over Q2 and Q3 ( of the order of 400 cr or so )

If the solar contracts execution had started + company had not faced supply issues with fans business - topline would ve grown by as much as 30 pc !!!

Have started selling home wires and cables in Karnataka and TN ( wef Q4 ) - across 14 cities / towns

Don’t need any more price hikes for the moment. With a mix of better volumes, cost efficiencies, previous hikes - all these should help margins going forward

Crompton has a habit of working with extremely low working capital - to improve return ratios. That also means that they carry very low inventories. As the war broke out - not carrying inventory backfired and caused supply challenges for them

Implementation of BEE norms ( wef 01 Jan 26 ) is helping CG gain mkt share - even @ the lower end as they have better cost absorption capacity vs smaller peers. They were as such doing extremely well in the BLDC and premium categories

Company recognised revenues when installations are completed - talking about Solar rooftops + Pumps. The installion work was on in Q1. Revenue recognition should happen in Q2. GoI is paying them on time and have also been pushing them to accelerate installations

Have got an order to install 38k solar rooftops in AP in FY 27 ( got this order LY ). Execution has to happen in current FY

CG indulges in 2 types of solar installations for Govt contracts - Installing standalone Solar Panels and associated equipment and maintaining them + Installing solar pumps and PV modules and associated equipment and maintaining them. The AP order mentioned above is of former type

For both these businesses, company has an installation partner. All the costs r incurred by the partner. When CG receives money from the Govt, they keep their share and pass on the rest of the money to their installation partner

These B2G solar businesses have similar EBITDA margins as company’s consol EBITDA margin

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes