Symphony Q1FY18 Concall Summary


Financial Highlights

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  • Second time in last 20 quarters, Symphony has experienced degrowth in topline
  • Significant reduction in profitability margin
  • Degrowth of 15% in the topline; mainly due to erratic rains in the country
  •  The overall demand of the five new touch series of models was high and these were launched at introductory price, contributing to lower profitability
  •  The company has taken a substantial price hike (15-23%) with effect from 1st July 2017; expecting the contribution margin and EBITDA margin to rise to December’16 level
  • Sales has decreased from Rs.152 crores to Rs.129 crores YoY (15% reduction)
  • Gross revenue down from Rs.158 crores to Rs.142 crores YoY (10% reduction)
  •  EBITDA has decreased from Rs.44 crores to Rs. 32 crores YoY (reduction of 28%); EBITDA margin to gross revenue down by 570 bps to 22.5% YoY
  •  Reduction in PAT from Rs. 31.56 crores to Rs. 24.04 crores YoY (24% reduction); PAT margin reduced from 20% to 16.9% YoY
  • Market share has increased to excess of 50%, from 40%

Impact of GST

  • There was a rate benefit to the company
  • Simplification of business in respect of efficiency in logistics and speed
  • Clear move from the unorganized sector to organized sector in the market and this is expected to accelerate
  • Dramatic improvement in the organized retail; market share of 60-90% in organized retail
  • The tax rate has reduced to 18% post GST, from the overall tax of 21% including the excise duty, VAT and Service tax

 International Business

  • Robust growth in the sales in Europe
  • Opened up new markets in South America and African countries
  • Challenging economic and political environment in Middle East and Saudi Arabia a cause of concern
  • Strengthening of Rupee has also affected the international market
  • Strong profitability and contribution margin of the company helps reducing the impact

Air cooling segment performance

  • Capital Employed increased from Rs. 95 crores to Rs. 171 crores YoY
  • This is due to some inventory build-up at the company level; However, due to the robust booking, the inventory expected to reduce to zero by August
  • Hikes in the advances to the OEMs has also led to increase in the Capital Employed

Geographical performance

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  • Decrease in the revenue in India from Rs. 134 crores to Rs. 110 crores YoY; close to 18% reduction
  • Revenue from rest of the world has increased from Rs. 18 crores to Rs. 20 crores YoY, up by 8.3%


Tata Elxsi Q4Y17 Concall Summary

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Financial Highlights

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  • Fairly good quarter; 5% increase in the revenue when compared to the previous quarter
  • Revenue depleted by close to 4% due to the erosion of the currency
  • Unfavorable changes in the exchange rates resulted in reduced profits and revenues

Major Projects

  • Worked for Tata Motors for the Geneva Motor show in setting up virtual reality bar which was ideated, designed, equipped and operated by Tata Elxsi.
  • One of the main VFX studios which was commissioned for the movie Baahubali 2.
  • Converted couple of customers who were interested in the e-cockpit solution that was demoed in the CES presentation (presented in the previous quarter)
  • Steady ramp up in the ODC project for Panasonic in India
  • Completed a project for HAL for the design of interiors of Indian Multi-Role Helicopter (IMRH) in a record 60 days, utilizing variety of processes
  • Awarded contract from AAI to help them develop the way finding and signage design for 10 airports across the country

Major Achievements

  • Achieved a major win with an European operator for one of the automation tools and license the complete automation suite to this operator
  • Good roadshow observed in Japan and expecting to convert some into business in the automotive side
  • Japanese OEMs companies looking for OEM deals with Europe and US companies; However, large Tier 1s do not have any experience working overseas
  • Won the prestigious iF Design Award for works on Kochi Metro

 Business Strategies and Growth

  • Broadcast business has almost doubled in business due to one of the major customers
  • Supported Indian brand Blue Star to launch their new range of water purifiers
  • The top 10 customers contribute to 60% of the revenue on an average
  • Hedging – Apart from the natural hedge, the company also takes options at a premium; the company does not do any derivatives nor esoteric deals

Revenue Breakup

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  • Embedded Product Design (EPD) contributes 75-80% of revenue
  • Auto constitutes 60% of EPD
  • Growth rate of Transportation was close to 35% and that for broadcast was below 20% for FY17
  • Industrial Design (ID) constitutes 14% of revenue
  • 40% from the Old VCL revenue
  • Less than 50% from the entertainment market
  • 62% of the revenue are from offshore work and close to 38% is realized from onsite deployment
  • 44% revenues from Europe, 40% from US and the rest from India and Rest of Asia
  • Volume growth of 8% realized in this quarter when compared to Q3
  • Increasing significance of OTT and related applications
  • The company has its own IP and frameworks which help in testing and validation of some of the OTT frameworks
  • Gain in customers in the last quarter for licensing the framework which help launching these OTT services faster

No. of employees and hiring

  • The year ended with total of 5500 employees
  • Hiring against specific requirements; mostly fresh graduates

 Merger of VFX and industrial design team

  • Synergies have been extracted
  • Several projects, like the Tata Motors at Geneva, realized only through the combination of content

Other Updates

  • The Utilization Rate for the FY is around the mid-70s
  • CFO resigned owing to personal reasons; company in process of identifying the new CFO


PI Industries Q4FY17 Concall Summary

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Financial Highlights

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  • Revenue stood at Rs. 627 Crores, higher by 4% over the last quarter figures with EBITDA at Rs. 154 Crores, up by 42% having EBITDA margins at 24.5%
  • PAT has also increased by 41% to Rs. 135 Crores due to better tax figures for the company for the 4th quarter.
  • Overall on the FY basis, Revenues increased by healthy 8.4% to Rs. 2383 Crores with EBITDA at Rs. 551 Crores (up by 28% on a Y-o-Y basis)
  • Tax rate has also been reduced due to investment tax rebates and other factors offering a PAT of Rs. 457 Crores, up by 48% Y-o-Y basis
  • Based on a sound financial performance, the company has announced a quarterly dividend of Rs 2.50 making dividend of Rs 4.00 per share for the whole year
  • Debt to Equity position stood at 0.50x
  • Better utilization of credit line and cash has kept the trade payables for FY17 down to Rs. 288 Crores from Rs. 366 Crores.
  • Other Expenses has been down by 12% compared to Q4FY16 figures.
  • Tax rate can be expected to be in the range of 20% in the future years as currently there is a lot of saving in the company due to existing benefits on SEZ’s and on R&D spending and Investment allowances for PPE
  • In the other income section new gains has been transferred due to Ind-As standards of financial reporting
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Global Industry Outlook

  • Global industry is perceived to have a turnaround in the upcoming financial year due to increased inventory for major global players
  • These are few triggers, the inventory in the channel, inventory with the companies and also commodity prices
  • The commodity prices for the last three-four years have been declining, but there is wellhope for revival trend in terms of commodity prices also
  • Exports are currently growing at a rate of 11% for the company which is expected to keep at 10% level in spite of an expected slump in the following 2 Quarters.

Strategic Partnership With BASF

  • Under a new agreement with BASF, PI industries is going to co-market latest innovative fungicides and herbicides with 4 new molecules
  • Two out of these 4 molecules are going to be newly launched in crop segments in India – one is in the rice category and other one in maize category
  • Multi-Pronged approaches have been taken by the company to increase distribution network for better market penetration for these products.


  • Company has expected for a cap ex of Rs. 200 Crores for the FY18 and is going to setup new investment opportunities
  • 50% of this capex will be targeted towards revenue generation and 25-30% towards technological upgradation
  • The plant in Jumbasar is also expected to run on a higher capacity than currently (60%) and new capex can be scheduled in this arrangement
  • This financial year has marked full operations of 2 plants in Jumbasar for four molecules where there is enough land to set up 6 more plants
  • There is going to be some investment in one of the MPPs that is currently in progress.
  • The company is also looking at some refurbishing of the earlier assets, some expenditure is also going to happen towards ETP & Utilities
  • Plan for the Pharmacy business in final stage and will be communicated by the next financial year

Oreder Book

  • The order book of the company  is in the range of 1 Billion dollars which is up by 25% from the last year
  • Contribution of existing product line coming from Jambusar plant and future product line is present in the new order book


Gati Q1FY18 Concall Summary


Macro Environment

  • Cumulative growth in the IIP index for the period April to June 2017 and 30% over the corresponding period last year.
  • GST law came into effect on July 1st 2017.
  • Gati made a zero downtime transition to GST across all their operation subsidiaries.
  • E-Way bill rules are anticipated shortly.

Financial Highlights

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  • Consolidated revenue for Q1 FY18 stands at INR 4,267 million or 426.7 crores.
  •  Consolidated net profit rose by 258% to 18.3 Cr for Q1 FY18 from 5.1 Cr for Q1 FY17.
  • Core express business volumes grew by 5.6% year-on-year and reverse historical seasonality with 4.6% quarter-on-quarter growth.
  • The standalone revenue for Gati is 119 Crores in Q1FY18 , 122 Crores in Q4FY17 and 127 Crores in Q1FY17
  • Standalone EBITDA is 27 Million this quarter against 26 Million last quarter, and YOY it was 108 Million.
  • On the EBITA side, the Firm is flat versus the last quarter and the firm is having a bit of a dip. The reasons for this are as follows
    • e-commerce business has been a bit slow relatively,
    • Cold chain business which is in the building up stage where the firm is building up fleet in their house has given the firm a bit of an EBITDA drag.
  •  PBT has grown versus last year 324% and versus last quarter 116%.
  • Overall debt position has come down versus last year in March we were at 493 crores and in June we have finished at 4,271 million.
  • Foreign currency loans are completely out.
  • The Firm had about $22 million of FCCB that was outstanding and one-third of that has been repaid and two-third have been converted into equity.
  • The other income is somewhere between 25 odd crores whereas consolidated is 26 odd crores.
  • CAPEX plan in the range of 30 to 50 Crores.
  • The firm owns 4 fuel stations.
  • The firm has regrouped FCCB reversals and interest related items
  • Loan given to subsidiaries : 19 Crores
  • In august the firm will convert FCCB loan into equity shares, with 10.8 Million shares.

Business Updates

  • Expects e-commerce business in terms of topline and profitability to change track almost immediately going forward
  • Last quarter the parcels with weight more than 5kg were about 20% and this quarter this increased to about 26%.
  •  6% increase in large packages
  • 70:30 ratio of less than 3 kg and more than 3kg for last quarter, and for this quarter this ratio is 65:35 (65% less than 3 kg, 35% more than 3 kg).
  • Larger packages are strength for the firm and provide more profit.
  • The margins have reduced due to Kausar Business and E-Commerce business

Express Business

  • Volumes have grown by 5.6% year-on-year and 4.6% quarter-on-quarter despite historically the business actually having a seasonal dip in this quarter.
  • Contributes to about 70%-75% of the total business.
  • A business vertical of retail which caters to many SMEs, has grown by 20% in Q1FY18. It has actually grown quarter-on-quarter by mere 7%.
  • The GKE business had an EBITDA of 15 Crores and for Q1 FY17, it was 17 Crores.
  • As per the management this segment is extremely healthy

Retail Business

  • Grew 279 Crores in Q1 FY18 against 265 Crores in Q4 FY17.

KWE Business

  • Earning for Q1 FY17 was 282 Crores.
  • EBITDA around 15 Crores for this quarter and 7 Crores for the previous quarter

Kausar Business

  • Still in Initial Stages.
  • Earnings were 11.1 crores in Q1FY18 versus 10.3 crores 16.18 in Q4FY17 and 11.8 in Q1 FY17.
  •  Delivering a marginal negative EBITDA because it is still building on.
  • The firm is planning to expand their network in the coming time.
  • Marginally negative EBITDA
    E.) E-commerce Business
    •    Earnings were 42.4 crores in Q1 versus 49.9 crores in Q4 versus 58 crores last year’s
  • Q1 has seasonality in the e-com industry given typically the lowest quarter of the four quarters.
  • Through the last 3-4 quarters, a lot of the e-commerce industry had moved towards the smaller weight segments.
  • The firm expects to see change from Q3 onwards when the season hits.
  • Second consecutive quarter where company experienced negative growth in e-commerce.
  • In the year before, the firm has seen 70%-100% growth year-on-year.
  • FY17-18 e-commerce business expected to be around 30%-35% growth.
  • COD share is around 60%.
  • Q1 sale is typically little low but expects Q2 and Q3 to be better as the major players in E-commerce business have got funding

GIETL business

  • The GIETL is a trading solutions arm or subsidiary of Gati.
  • Offers end-to-end supply chain solution to our customers through this subsidiary
  • This segment grew by 60 per cent.
  • In the GST context, this segment is highly relevant
  • Three company is highly bullish for this segment.

Gati Fulfilment Services

  • Planned to start the full-fledged service in this quarter
  • But due to the launch of GST , this launch was delayed
  • Due to GST , lot of sellers were very hesitant to move into a new mode
  • The launch has been delayed by around a quarter

Supply Chain Enhancement

  • Launch of a new product for value-added transportation to complement its existing portfolio of express distribution and warehousing.
  • This helps the company provide an integrated end-to-end supply chain condition which is most relevant in the new GST era.
  • The company is engaged with several marquee customers across industry sectors to bring efficiencies to their supply chain.


Arvind Q4Y17 Concall Summary


 Financial and Business Highlights

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  • The value of company increased from Rs.2200 crores to Rs.3000 crores company this year.
  • Cotton prices have been prevailing at 25-30% higher levels than theprevious year.
  • Brands and Retail business showed 22% revenue growth
  • The margins almost doubled to 7.1% from last year
  • Power brands show powerful performance with revenue growth of around 21% and margin of around 13% which is up from around 10% in the same period last year
  • Q4 revenue for FY 17 was 10% higher than the previous year
  • EBITDA margins were down 2% on account of reduced margin in Textiles and lower earnings in a few smaller business
  • E-Commerce is the fastest growing but on a smaller base.
  • There was 5% are the growth of Branded business and 5.4% on Power brands.
  • 9.4% LTL sales growth across all the businesses
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Brands and Retail Business

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  • Brand and Retail business delivered market leading thegrowth of 26% with slight improvement in margins. Also, likely to grow at around 22-25%
  • Margins for Brand and Retail business will continue to grow - 150 basis points margin improvement
  • Brand and Retail portfolio had a strong LTL growth of 9.5% for the quarter
  • Brands are divided into three categories namely “Power Brands,” “Emerging Brands” and “Specialty Retail.”
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  • Power Brands grew 5.4% on LTL level
  • Power Brands delivered very good profitability, but it used to be taken away by some of these Emerging Brands.
  • The negative impact of the Emerging Brands is now coming down. Last quarter they reached to breakeven improves the overall margin.
  • Emerging Brands and Specialty Retail is improving to help margin.
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Textiles Business

  • The revenue growth of Textile was over 8%, primarily driven by the 25%-odd growth in Garment revenue.
  • EBITDA was lower by around 10%.
  • Margin for Textiles business is likely to remain under pressure primarily due to higher Cotton prices as well as the currency impact
  • Textiles EBITDA is around Rs.900 crore.
  • PBIT has gone up from Rs.57 crores to Rs.77
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Technical Textile Business

  • Technical Textiles has seen a sharp decline from Rs.31 crores EBIT profit to Rs.7 crores EBIT loss
  • AMD, a part of Technical Textiles Business, is currently scattered among textiles as well as another segment.
  • AMD business is growing at a pace of about 25%; it will be a closer to Textiles margins over a period of one year.
  • Technical Textile has grown by over 25%; it is going to be close to Rs.700 crores business this year
  • In the next 1, 1.5-years, Technical Textile is planned to make Rs. 1,000 crores with adecent margin

Unlimited Brand

  • “Unlimited” brand which is now reinvented and relaunched version of earlier Mega Mart
  • Unlimited had an impressive rate of 29%.
  • Unlimited had LTL growth of 30.2%
  • SSG number of Unlimited brand is around 27-28%

Specialty Retail

  • Specialty Retail which is GAP, TCP and Sephora was launched last year
  • Sephora contributing much more than planned
  • GAP and TCP had been expanded quite well in one year.
  • There was some challenge regarding the cost model because of the CVD introduction in the last budget which is now getting corrected through domestic production


  • The company is investing in Ethiopia and will be setting up around 12 million garments unit.
  • Overall investment would be close to Rs.100 crores in Ethiopia to set up garment manufacturing plants,
  • phase-1 is getting over this financial year
  • The first plant that had been bought and invested in has gone into commercial production in Q4 and is  expectee to make larger shipments starting July 1
  • Almost by October 2017, it will be functional at full levels of production; it is about 6 million garments annual capacity.


• Expense on the internet was over ten million plus last year;it should be down at least 20-25% this year.r


  •  The inventory level is maintained around two months’ level, that is the standard have been maintained.


  • Net debt at the year-end was Rs.2950 crores which arearound 2.9x EBITDA for the year.
  • On overall basis, debt would not change for more than Rs.100 crores
  • The debt-equity ratio is at 0.8; however, the earning-to-debt ratio has come below 3, and the company's stated objective is to take it to 2.5.


  • CAPEX target of almost Rs.500 crores and with working capital increasing because of cotton price increase
  • There a possibility that there will be Plus/minus Rs.100 crores neutral cash flow


  • Around 40% of Textiles revenue comes from exports approximately and about 30% and 50% of this amount hedge every year
  • The contracts remain for two months or the commodity hedges.
  • Hedging mostly on international exchanges as liquidity is not very high in the domestic market

Cotton price

  •  Cotton prices have increased by 15% in Q4
  • The raw materials cost to sales have changed by 4% hence margins are under pressure in Q4.

Joint Venture businesses

  •  Two out of five joint ventures are in the field of Technical Textiles
  • One business is in the Garment manufacturing.
  • Company suffered a bit because most of its sales were directed to the UK which because of the pound there was a challenge there on margin
  • Garment, Tommy & Hilfiger and Calvin Klein have done extremely well this financial year.

GST implication

  • In GST, there is one immediate transition-related rate, and there is one which is a medium-term raes
  •  On the opening inventory, they would give a set off against the GST in future of VAT as well as excise duty. However, they will not give you set off of service tax or CST.ra
  • Overall GST would be about 7% or thereabout as the taxes which are available in transition
  • For Textile, Tax after GST would be around 2% and 3%. 90% of sales are B2B sales, and hence tax would be saved because of Input tax credit

Engineering business and water treatment plant

  • Engineering business and Water Treatment business are operated under the brand Arvind Envisol which is 100% subsidiary of Arvind
  • Engineering business is growing at 25% revenue
  • Engineering business was close to Rs.160 crores and anEBIT margin of over 25%.
  • Zero discharge patented technology in Water Treatment projects.
  • Water Treatment plant’s revenue is expected to touch turnover about a couple of hundred crores over a period


Atul Auto Q3FY17 Concall Summary

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Financials Highlights

  • Atul Auto has seen negative growth of 12.42% as compared to 19.54% de-growth of overall industry.
  • Net profit margin for Q3FY17 is 9.19% as compared to 9.68% in previous quarter and 10.56% in Q3FY16.
  • EBIDTA margin has remained 15% for Q3FY17.
  • EPS for Q3FY17 is Rs. 5.6 which is down by 0.69 paisa compared to Q2FY17.
  • Raw material consumption has increased by 41 basis point on account of increase in commodity prices.Because of increase in raw material cost, EBIDTA for Q3 has dropped by 1% compared with Q2FY17.
  • Account receivables has reduced as compared to previous quarter and debt-free status is maintained.

 Business Highlights

  • Volume for the company in domestic market has dropped by 18.9% which is in line with industry’s drop of 18.3%in Q3FY17.
  • In overseas market, the company has achieved 7x the volume of Q3FY16, while the industry saw decline of 22%.
  • In Q3FY17, the company has sold 11,043 vehicles with turnover of Rs. 133.76 crores as compared to 11,761 vehicles and turnover of Rs. 142.7 crores in Q2FY17.
  • Domestic sales for Q3FY17 has remained 10,116 vehicles as against 11,253 vehicles for Q2FY17. Export sales have increased to 927 vehicles against 508 vehicles in Q2FY17.
  • Out of 11,043 vehicles sold in Q3FY17, passenger auto is 6069 vehicles and remaining are load carriers.
  • The market share of the company in cargo segment has remained 18% whereas in passenger segment it is 6%.

Industry Update

  •  Till December 2016, the overall Auto industry of India has registered a positive growth of 6.67%, domestic market grew by 9.42% whereas export has de-growth of 7.37%.
  • Because of the impact of Demonetization, volume growth for auto industry has remained negative 3.33%.
  • 3-wheeler industry has seen overall decline of 14.8% till December 2016. Domestic market have flat growth rate of 1.88% while in international front, export have declined by almost 35%.

    Bharat stage 4:

    • BS4 complying products are ready. The company will get certificates of the products by end of February 2017.
    • When BS4 becomes effective from April’17, raw material cost may go up between 5% and 7%.


    • The company is likely to launch E-rickshaws from Q1FY18.The market size for electric vehicle in India is around 150,000 a year at 10,500 per month.
    • The product will approved by authorized certifying agency and it will be meeting government norms.
    • The product will be distributed through authorized dealers so after-market services will also be available. Warranty will also be available on critical components.
    • The company will tie-up with retail finance company for easy availability of finance.
    • Margin on these products will be in line with regular products.


    •  The company have 200 primary and 120 secondary distributors in the domestic market and 10 distributors in overseas market.
    • As of now, the company is selling majority of diesel and petrol fuelled vehicles in Gujarat, Haryana, Rajasthan and Punjab.

    Inventory Stock levels:

    • Dealers’ stock levels have come down in Q3FY17 as compared to H1 of current fiscal year. Retail stock levels have gone up.

    Export market:

    • The company has already crossed FY16’s figure of export of 1500 vehicles in first nine months of FY17.
    • The company is targeting African markets and Latin American markets which are major destinations for 3-wheelers other than India.
    • Demand for products in Africa is around 1,75,000 units per annum while for Latin American countries market demand is somewhere between 50,000 and 60,000 units per annum.
    • In Africa the company is facing the challenge of having USC from the buyers. The African buyers are unable to get the FOREX which is a major concern in developing market.