- This year Volume growth by 12%
- EBITDA is up by 13% and EPS is up to 9.75 from 8.7.
- Rs 95 Lakhs deduction of stock valuation due to shortage of material.
- Rs 30 crores business from Dairy Milk Lickables during 2017-18, 35 crores projected for next year.
- Expected to cross 15% Growth in financial year 2017-18
- Have to invest at least 25 Crore in year 2018-19
- CapEx at 244 Crores in 2016-17
- Debt at 149 Crores in year 2017, Last year it was 115 Crores
- Got 80 Lakhs worth of discount in Q3FY17
- Break even to be achieved by FY2018
- 18.66% Increase in Employees cost paid in last quarter
- J Lakshmana Rao as promoter increased his Share to around 35% and Rules out buyback
- No Plan to increase Debt as cash position is healthy. Free fund to tune of 30 crores still available for investments.
- Quarterly sale up by more than 50% from IML, 270 tons of RAK sold
- No addition of top line from Asian Paints plant.
- Major growth from FMCG and RAK contribution (from next year)
- Spending on FMCG unit to grow as it is not seasonal and provide stream of revenue throughout the year
- Dairy milk lickables will contribute around 10% growth alone. The growth combined with RAK would safely lead to more than 20% growth in sales.
- IML grew from 44% to 49%. IML contribution to 4th Quarter was 52.7%
- Drop in stock value of raw material (Rs. 6 below market price) was observed leading to total of 95 lakh drop.
- Overall volume for 2017 is 18830 tons as compared to last year at 16,880 tons
- Company expanding it product portfolio by adding products like ice creams, cheese, butter etc.
- Plant started getting reasonable traction. Utilization in range of 25%-30%
- 15% increase in spend on food and FMCG unit
- Raw material is stocked for 10 to 20 days
- Loss in first four months of Operation of new unit asIt has just started and has very little capacity utilization at this point of time.
Customers and competition
- Asian Paints contributes 30% to sales
- One more order from Cadbury, Mondelez
- Talks are on with Heinz, Danone, TATA Tea etc.
- Couple of players from Delhi and Bombay pose as competition
- 80% capacity utilization is realistic given the product mix.
- RAK Facility capacity is almost 27,000 with 3000 recently added in year 2017
- Plant building in Mysuru and Vizag to be completed soon.
Effect of demonetization
- Thanks to First two quarters, where we could grow at 20%. Essentially Demonetization brought down growth volume from 20% to 4% for next two quarters. Third quarter ended with a negative growth.
- Effect of Demonetization still lingering over business with GST adding to the woes.
- Slow growth rate is observed in lubes and paints business. Additionally, demonetization would lead to uncertain adverse impact on these businesses.