AGM - Analyst Meet
Latest in AGM - Analyst Meet
The company had a Plant Visit and Analyst Interaction on 10th April'14 and was addressed by Mr. Vayu Garware CMD
Based on user industry, broadly Company's business is divided into various segments such as Fishing, Aquaculture, Agriculture, Geosynthetics, Sports, Coates fabrics, Ropes etc. Fishing is more of traditional business which is about 20% of total turnover, Aquaculture constitute about 15-20%, Agriculture about 15-20%, Ropes about 13%, Sports about 10%, Geosynthetics about 7% and rest would be from various other segments like coated fabrics, jute bags, woven sack, reinforcements etc.... (more)
Praj Industries held its Analyst meet on 25th March'14 which was addressed by Mr. Pramod Chaudhari Executive Chairman
- Current order book position of the company is around Rs 900 crore. This is about 1 times sales. Order intake in FY'14 is about Rs 700 crore, of which about 30% are export orders and rest are domestic orders. Emerging business order intake now stands at around 35%, with ethanol and breweries, the mature business constitute the remaining order intake.
- The new emerging business which consists of water and waste water treatment, high purity water (neela system), critical process equipment business now constitute about 30% of turnover as compared to about 0% in FY'08. Management expects the business to contribute about 50% of total turnover
- Emerging business has diversified customer base in sectors like sugar, beverages, pharma, cosmetic, agro chemical, high end industrial product and biotech. The delivery cycle of emerging businesses are short compared to its mature business. High purity water business has delivery cycle of 3-4 months, water business has 6-9 months; process equipment has about 5-7 months as compared to ethanol and breweries business of 12-14 months and 10-12 months respectively.
- Indian market size of pure water is about Rs 600 crore and the company sees huge opportunity in it due to high entry barrier. The Neela system, subsidiary of the company is already qualified with most of pharma and cosmetic companies globally.
- As per the management, margins have bottomed out around 8% level. In the past investments have been made in people and processes for mature business and the pie of emerging business is growing. Margins certainly are looking up from here onwards. Also operating leverage should also support the margin, as the company has sufficient capacity that it can raise turnover by another 30-40% standing at same level.
- Company has made several Investments in the past 4 years and management is confident of reaping the benefits in next 4 years.
- Mature business has market share of about 65% in domestic space and 30% in international ethanol market. The company has laid down various avenues to expand the business.
- Like ethanol, the company intends to take the breweries business also into overseas market, where currently it is only a marginal player. As of now it caters only to domestic brewers. Recently the company has received orders from large beer company SAB.
- The company also has plans to take emerging business internationally in a big way. Currently international contribution within emerging business space is around 12-15%.
- The company will also be launching the 2nd generation ethanol process plant in Q1 of FY'15. Currently testing is happening on demo plant which can reduce the costs of an ethanol plant to around Rs 120 crore. Nearly 50% can be funded through Government subsidy. This plant would demonstrate the 2nd generation ethanol making process, which would produce ethanol from cellulose instead of molasses or starch. This should help clients understand benefits of reduced capex/opex as compared to 1st generation process. This could be a huge opportunity if materialize well as it can run on multiple feedstocks and give multiple outputs. Globally, only 3-4 players are currently exploring this technology.
- Company is also exploring into bio products business such as livestock health and nutrition business in South East Asian market and for human health and wellness businesses in India.
- Management expects order book position and margins to improve going forward.
Bank of Baroda conducted an analyst meet on 03 February 2014 to discuss the financial results for the quarter ended December 2013 and prospects of the bank. Sushil Munot, CMD of the bank addressed the meet:
- The sharp jump in bad loans mainly impacted the performance of the bank in the nine months ended December 2013. Bank had to step up provisions for bad loans by additional Rs 225 crore in 9MFY2014 over 9MFY2013.
- As per the bank, an increase in bad loans was mainly caused by strong advances growth for last few years. An incremental NPAs were mainly contributed by infrastructure and related services in the large corporate segment.
- Bank has witnessed about Rs 300 crore increase in employee expenses in 9MFY2014, of which Rs 200 crore has been on account of wage revision provided at the rate of 9% and provision for pensions. Bank has opened 151 branches and installed 334 ATMs in 9MFY2014, while also recruited 1400 staff in 9MFY2014 weighing on operating expenses.
- Further, the bottom-lines of the bank were also impacted on account of provision for investment deprecation at Rs 90 crore in 9MFY2014 against write back of Rs 50 crore in the corresponding period last year.
- Fresh slippages of advances jumped to Rs 1393 crore in Q3FY2013, which half of the fresh slippages of Rs 2781 crore in 9MFY2014.
- Fresh restructuring of advances stood at Rs 213 crore in Q3FY2014 and Rs 1308 crore in 9MFY2014.
- Bank expects fresh slippages to decline more than 40% in Q4FY2014 from Q3FY2014 level, while expects
- restructuring to increase to be mainly contributed by Corporate Debt Restructuring (CDR) cells proposals. Bank has already classified these CDR proposals as NPAs.
- Bank has categorized bad loans into different buckets and formed different strategies for each bucket. Bank has started a one-time settlement (OTS) scheme for bad loans below Rs 5 lakh, which has received strong response.
- Bank has formed various groups focusing on NPA management and recovery.
- Bank has also appointed Ernest and Young as consultant for business transformations.
- Bank will focus on retail and SME segment for advances growth.
- Bank proposes to bring back the NIM to original level.
- As per the bank, there is huge CASA potential and it is focusing on new account opening for CASA and strong advertising for improving CASA ratio.
- Going forward, bank is looking for profitable growth, while expects asset quality pressure to ease.
AGM - Analyst Meet
Bank of Baroda conducted an analyst meet on 06 February 2014 to discuss the financial results for the quarter ended December 201... (more)
State Bank of India conducted an analyst meet on 14 February 2014 to discuss the financial performance for the quarter ended Dec... (more)
Power Grid Corporation held its analyst meet on 6th Feb'14, which was addressed by Mr. P Nayak, CMD ... (more)
Tata Global Beverages (TGB) held its Analyst meet on 30th Jan'14 and was addressed by Mr Harish Bhat, MD and CEO. ... (more)
In Interaction with Mr S Kabra, CMD as on 16th Jan'14 ... (more)
State Bank of Travancore conducted an analyst meet on 06 November 2013 to discuss the financial results for quarter ended Septem... (more)
Bank of India conducted the analyst meet on 31 October 2013 to discuss the financial performance of bank for the quarter ended&n... (more)
Syndicate Bank conducted the analyst meet on 29 October 2013 to discuss the financial performance of bank for the quarter ended ... (more)
Power Grid Corporation held its analyst meet on 24th Oct'13, which was addressed by Mr. P Nayak, CMD ... (more)
The company held its Analyst meet on 22nd Oct'13 which was addressed by Mr. Veeramani Shankar Managing Director &... (more)