Zee Learn Q1FY19 Concall Summary

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 Company Update

  • Zee Learn in the last 10 to 12 quarters has consistently performed well, and the growths have been to the extent of about 35 to 30% both on the top line and bottom line.

  • Zee Learn has approximately 200 business partners as franchises.

  • Zee Learn through its Kidzee, and Mount Litera Schools operates in 700 to 750 cities pan India

  • Mahesh Tutorial is now a part of ZEE Learn

  • Mahesh Tutorial in this first quarter have done a breakeven and posted a small PAT of about approximately a Crore.

  • The company has acquired 60% and immediately as on date there are no plans to merge MT Educare.

Quarter performance including MT:

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  • The company attributes it’s increased the margin during the quarter to disciplined executions, accelerating growth and strong leadership bandwidth.

  • While we have made strategic investments to leverage the opportunities in the education sector,

  • The company is confident that its persistent focus on the operational efficacy of the newly acquired business of MT Educare will continue.

  • Company’s top line at the console level including MT stands at Rs. 113 crores which are up by 67&.

  • Company’s EBITDA is at Rs.42 crores vis-à-vis Rs.26 crores for the same period last year which is up by 62%.

  • Company’s EBITDA margin is at 37% vis-à-vis 38%. We have managed to maintain the margin in spite of MT consolidations.

  • Company’s PBT is at Rs.34 crores vis-à-vis Rs.19 crores for the same period of last year up by 77%.

  • Company’s PAT is at Rs.24 crores versus Rs.12.8 crores of the same period of last year up by 87%.

  • Company’s PAT margin is up by 21% vis-à-vis 19% for the same period.

  • Company’s minority interest is Rs.2.4 cross, and PAT stands at Rs.21.6 crores vis-à-vis Rs.12.8 crores which are up by 68%.

Quarter performance excluding MT:

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  • Company’s top line is at Rs.82.9 crores vis-à-vis Rs.66.9 crores which are up by 24%.

  • Company’s EBITDA is at Rs.31.9 crores vis-à-vis Rs.25.1 crores which are up by 27%.

  • Company’s EBITDA margin is at 38% vis-à-vis 37% for the same period of last year

  • Company’s PBT is at Rs.25.8 Cr vis-à-vis Rs.19.3 crores which are up by 34%.

  • Company’s PAT is at Rs.18 crores versus Rs.12.8 crores which are up by 41%.

  • Company’s PAT margin is at 22% against 19% for the same period of last year.

Zee Learn Standalone Quarter performance:

  • Zee Learn’s top line standalone stands at Rs.54.2 crores versus 51.7 crores which are up by 5%.

  • Company during the same quarter last year had a one-time revenue of around Rs.3.12 crores on account of sale of additional kits.

  • Company’s growth at a standalone level after excluding the past year’s quarter one-time revenue comes to around 12% which is in line with its normal growth.

  • Company’s standalone EBITDA stands at Rs.22.9 crores versus Rs.18.9 crores which are up by 21%.

  • Company’s EBITDA margin is 42% vis-à-vis 37% and on a standalone basis.

  • Company’s PBT is Rs.23.6 crores vis-à-vis Rs.17.9 crores which are up by 32%.

  • Company’s PAT at Rs.16.2 crores vis-à-vis Rs.11.6 crores which are up by 40%.

  • Company’s PAT margins stood at 30% versus 22% in the period during last year.


  • The company has Rs.16 Crores at Zee standalone level versus the same period last year we had Rs.14 crores debtors.

  • As far as DVPL is concerned the debtors has reduced to Rs.14 crores versus Rs.51 crores the same period last year.

  • The net debtors at MT are at about Rs.21 crores versus Rs.137 crores last year same quarter, so the company is very well placed regarding the receivables.


  • The company has about Rs.118 crores borrowings at ZEE Learn standalone versus Rs.108 crores same quarter last year.

  • The company has Rs.122 crores at DVPL versus Rs. 121 crores same quarter last year and MT borrowings as on June stand at Rs.154 crores versus Rs.161 crores.

  • MTS started repaying their borrowings post-June, and there is a substantial reduction as of now.


  • Kidzee revenue has grown by 5% however when that one-time sale of kit during last year same quarter the Kidzee has grown up by about 12%.

  • Kidzee’s EBITDA margin was about 50% vis-à-vis around 47% same quarter last year.

  • Kidzee’s EBITDA is about Rs.21 crores versus Rs.18 crores last year.

  • Kidzee has about 1,10,000 students versus 102,000 students same period last year. So, there is a growth of about 8%.

  • The company expects to reach about 145,000 and a little above 145,000 students by the end of the financial year.

Mahesh Tutorial:

  • MT operates on self-operated models. Their centers which are there are mostly self-operated.

  • Mahesh Tutorial’s geographical spread is limited to 7 or 8 states.

  • The company sees an opportunity for MT to launch from the Zee Learn franchising model and help that in an asset-light manner to expand their business

  • The company sees an opportunity for MT to expand Pan India via ZEE Learn’s Kidzee and Mount Litera schools that operate in 700 to 750 cities pan India.

  • Mahesh Tutorial can become a partner of about 200 franchises of Zee Learn and utilize their real estate.

  • Zee Learn students would have access to very good content curriculum, of the higher classes specifically 9th 10th and 11th and 12th from the Mahesh Tutorial portfolio.

  • The company has to put a lot of efforts to acquire the consumers who come to Kidzee at the age of 2 years.

  • The company acquires and nurture them for the next 15 odd years.

  • The company only gets a limited part of their share of wallet because when the students are outside the four walls of the school, there are many other people catering to them for auxiliary services like test prep and tutorials etc

  • The company hopes to give more holistic and integrated services to the student community making their life simpler and also spreading its consumer acquisition costs over multiple offerings and broader revenue base

  • MT Educare has enrolled about 46,500 students through its various verticals in this quarter, versus about 35,400 students they served during the same quarter last year.

  • The company had cleared about Rs.51 crores of debt for MT Educare which were standing around 176 crores when we acquired MT Educare.

  • Company’s target is to reduce the debts in the MT Educare substantially and thereby save the interest cost.

  • The company revealed that the reduction in debt is also connected with the one-time payments that will be required to do as per the term sheet entered by MT Educare.

  • The company had infused 200 crores in MT Educare and by that time they had about 176 crores debts.

  • The Company aims to utilize that 200 crores substantially or largely to reduce the debt, to use about 15 crores to 20 crores in working capital.

Mount Litera Zee School

  • Mount Litera Zee School has about Rs.10 crores top line versus Rs.10 crores top line last year.

  • Mount Litera last year had two signups higher than the current year signup.

  • Mount Litera normally does around 15 signups during the year.

  • The EBITDA margin for Mount Litera franchisee business stands at 30% versus 26% last year.


  • Liberium has delivered a turnover of Rs.19.6 crores versus Rs.9.4 crores, growth of about 108%.

  • Liberium currently is served by 3900 employees versus 2000 during the last year same period.

  • Liberium's EBITDA margin is about 5%, and PAT margin is about 3.6%.

KIDZEE Day Care:

  • The company plans to roll this out in 100 centers in the current year.

  • Kidzee Day Care’s theme is home away from home which provides the safe, secure and nursing environment for every child.

  • Kidzee Day Care is a comprehensive program hearing cognitive, social and emotional, combination of speech, language, sight and gross motor skill development for the child.

  • The company plans to start this pilot in the month of October.

  • The company expects a significant impact regarding revenue from these 100 centers.


  • The company plans to do a pilot across 50 such locations across the country.

  • Ankuram is aimed at providing structured quality education at an affordable cost in a safe and secure environment.

  • The company wants to give students the best chance of academic success by providing well-researched age appropriate and child-centered holistic curriculum.

  • The company has already done three signups so far, one in Udaipura which is in MP, Jamner in Maharashtra and Shahapur in Karnataka.

  • The company plans to do a launch in September with around 10 to 15 schools.

Smart classes ICD space:

  • The company has also taken small steps into the smart classes space ICD space and the objective being to identify stable government projects with a sustainable margin.

  • Company’s academic strength, Pedagogy, school management experiences give it the competitive edge.

  • The company so far has not ventured into this field, and this is the first time they plan to enter.

  • The company has already formed a partnership with –another entity Edu Solutions.

  • The company has got its first project which is the Agra smart city; it is a very small project with 30 digital classrooms for an order value of about 52 lakhs.

  • The company has few projects in the in the pipelines they are already in talks at Dharamshala, Telangana, Jammu and Kashmir and Jharkhand for similar projects.

Kidzee Learning Tab

  • The company has planned to make the Kidzee Learning Tab a mandatory part of the student kit as it would be linked to their curriculum, therefore providing better learning outcomes for the child.

  • The company mentions it as a cheaper option compared to what they had provided previously.

  • The company finds the tab to be convenient also, as it can be installed on any Android or IOS platform.

  • The company plans to start from the next academic year, and they are targeting 50,000 plus children in the pilot itself.

Wellness Health

  • The company believes that obesity is a real problem amongst children in India and therefore they plan to roll out a wellness program across our children both in Kidzee as well MLZS.

  • The company has been a pioneer in early child education, and this initiative is spreading the awareness about health and nutrition.

  • The company expects it to be a significant revenue driver for it because given the scale and the scope.

  • The company will be covering four broad parameters-general, dental, eye and dietary.

  • The company has received a very positive response and these have to be assessed by qualified doctors we are starting off with the pilot with 50 centers covering 5000 children’s in September and so far we have received a very encouraging response.

  • The company is also launching a parenting magazine for the network for the first time.

  • The company believes that it is very important to also communicate effectively with the parent community.

  • The company wants to deliver uniform; it is starting with uniforms with online delivery of uniforms across the network.

  • The company conventionally use to bring all material into its warehouse and then dispatch it to the respective schools, but here they want to go directly to the parents.

  • The company expects significant operational efficiencies benefits both regarding top line and bottom line as they go forward on this.


  • Robomate is online App; it is delivered to its customers in two formats, Whoever buys a test prep or tutorial package gets access to Robomate and secondly one can also buy it in a standalone mode directly.

  • Robomate is a SaaS-based platform which is very versatile.

  • Robomate is not only a tool for delivering content curriculum, etc., to the students, but it is also testing, self-assessment revision tool, and also the same tool can be used to manage the various activities within an educational institution.

  • The company expects the performance metrics for the direct part to be, that how many people have registered on the web portal for this particular app. Secondly, how many have done a download of the free trial which is offered for 3 or 4 days. And then how many have bought it?

  • The company will provide Robomate app to the students who buys a test paper or tutorial course from Mahesh Tutorial.

  • The company would have B2B tie-ups for the Robomate with many institutions.

  • The company generates two types of revenues from Robomate; one through the tutorials and the test prep that MT conducts through its class rooms.

  • There is an apportionment of Robomate which is offered to those students which will be about 25% to 30% of this fees that they pay for each of those tutorials and the test preps.

  • The company also sell robot mate as an independent package to students outside its classrooms.

  • Company’s sales value for outside students is roughly around 10,000 to 12,000 per user.

  • The company is confident about the larger acceptance of Robomate.

  • The company has sold about 9750 Robomate outside the classrooms to the independent students, which were not MT Educare students versus 2473 students done in the same quarter last year.

  • The company has so far generated five crores from Robomate.


Other Concall Summaries of Zee Learn



Symphony Q1FY19 Concall Summary


Key Performance Figures:

  • •Revenues declined from ₹ 190 Cr to ₹ 146 Cr. (drop of over 23%) for the Quarter ended on June’18 [Consolidated]
  • EBITDA dropped over 50% from ₹ 47 Cr. to ₹ 23 Cr. {June’18 Quarter}
  • PAT dropped from ₹ 39 Cr. to ₹ 21 Cr. a drop of about 48% in Q1FY19
  • Efficacy of Capital employed has improved from ₹ 152 Cr. to ₹ 189 Cr qoq 
  • International Business is unaffected at ₹ 80 Cr, same as the last year, for the same quarter
  • Domestic Business dropped from ₹ 110 Cr. to ₹ 65 Cr. on a Standalone alone basis 
  • Treasury, Cash & Cash Equivalents are up from ₹ 351 Cr. to ₹ 449 Cr. 
  • Treasury, Cash & Cash Equivalents are the only parameters that have shown growth in Q1FY19
  • Company would be reporting the Consolidated performance on a quarterly basis starting June’18 Quarte
  • Gross margin remained more or less same through the quarter, however the drop-in profits was due to the reduced top-line.  
  • In the Dec Quarter, the profitability was in excess of 20%

Mexico Updates

  • In Mexico, the topline in Mexican peso has increased from MXN 109 million to MXN 123 million
  • IMPCO ha made profits of INR 12 Cr. & that of the China subsidiary has made profits of INR 3 Cr.

Acquisition of Climate Technologies

  • Symphony had recently completed the acquisition of Climate Technologies w.e.f July 1st 2018.
  • Climate Technologies was acquired at valuation of 40 million AUD which is expected to grow to 44 million AUD i.e INR 210 Cr
  • For FY18, Climate Technologies topline was $ 55 million with EBITDA of $ 5.5 million, which amounts to topline of INR 275 Cr & EBITDA of INR 30 Cr. & PAT of INR 23 Cr. on translation
  • Overall the acquisition translates to EBITDA multiple of 7.33x, while the sales multiple is 1x
  • The acquisition was funded by 60% long term debt of AUD & remaining 40% which is 15 million AUD is via equity. 
  • Climate Technologies is expected to generate ROCE of approx. 20% 
  • Climate Technologies is expected to register gains of $ 65 million in 2018 
  • By 2021, Climate Technologies topline is expected to grow to $ 80 million
  • Climate Technologies market share in Australia is close to 35%

Business Updates

  • The results were not so good primarily because of the bad summer with unexpected rains
  • The Topline in India has dropped from INR 120 Cr to INR 79 Cr. 
  • However, the ad expense has remained more or less constant at 21 Cr. approx.
  • Symphony was able to maintain it’s market share despite the overall market size drop
  •  As per the estimates, the branded cooler market would have definitely grown by about 15%. Markets in India and China are fragmented
  • In the last quarter, GST has registered the profit of almost INR 3 Cr.
  •  The company has created its subsidiary in Australia
  • Under Version 3.0, there is good opportunity of savings in Symphony’s range of residential coolers through Climate Technologies


Other Concall Summaries of Symphony 



Info Edge (India) Q1FY19 Concall Summary


Q1 FY19 Results - Stand-alone financials

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  • Billings in Q1 were INR 283.3 crores, up 17% year-on-year.
  • Revenue in Q1 was INR 259.5 crores, up 17% year-on-year.
  • Operating expenses excluding depreciation for the quarter were INR 175.3 crores, up 15% year-on-year primarily due to an increase in marketing, hiring in certain products and annual increments
  • Operating EBITDA stood at INR 84.3 crores versus INR 70.3 crores last year, having increased 20% year-on-year.
  • Operating EBITDA margin for the quarter stood at 32.5% versus 31.6% in Q1 of last year.
  • EBITDA adjusted for ESOP noncash charges stood at INR 88.1 crores versus INR 79 crores last year
  • Adjusted EBITDA margin for the quarter stood at 34%.
  • Cash EBITDA for the quarter stood at INR 112 crores, up 14.2% year-on-year.
  • Deferred sales revenue has increased to INR 420 crores as of June 30, 2018, versus INR 354 crores as of June 30, 2017, an increase of 19% year-on-year.
  • The cash balance for the company as a whole stands at INR 1,980 crores as of June 30, 2018
  • The recruitment business and the real estate business continued to drive the growth for the quarter.
  • Expenses
  • Spent more on marketing as compared to Q1 of last year,
  • Hired additional resources to invest in changing technologies.

Results by segment

Recruitment segment.

  • Recruitment segment billings in Q1 were INR 210 crores, up 15.4% year-on-year.
  • Revenues were INR 184.1 crores, an increase of 15.2% year-on-year.
  • Operating EBITDA margins in recruitment segment were at 56.8% versus 55% in Q1 FY '18.
  • Employee costs were higher because of increments and some net hiring in the division.
  • EBITDA margins adjusted for ESOP noncash charges stood at 57.8%.
  • Cash EBITDA for recruitment during the quarter stood at INR 132 crores, up 15.6% year-on-year.


  • Added an average of 18,000 fresh CVs every day in Q1.
  • Naukri database grew to about 59 million CVs.
  • Average CV modifications were [350,000] per day.
  • Traffic share in the job portal space continues to be in the mid-70s excluding Indeed and around 60% including Indeed.
  • Investment in recruitment tools and systems business continues aggressively.

Industry-wise trend

  • There was an uptick in new customer acquisition last quarter, and there was also some pickup in IT sector hiring, leading to higher billing from IT companies this quarter.
  • Non-IT companies -- sectors like auto, industrial products, construction, banking, finance, insurance, manufacturing, BPO and some other smaller sectors also did well for the company in terms of growth as also indicated by the Naukri JobSpeak index.
  • Revenue from consultants did not grow as expected.
    • 27%-28% of our revenue comes from IT companies
    • Another 25%-26% of our revenue comes from recruitment firms
    • And then all the rest comes from another 40-50 industries.

Key Investment areas in Naukri

  • Whole mobile piece and for the personalized user experience on app.
  • Enterprise applicant tracking and regular management space.
  • Data science group and a machine learning group to leverage these technologies to improve our machine capabilities.
  • Incremental improvements on product.

Real estate business - 99acres

  • In the real estate business, 99acres, billings in Q1 grew 39% year-on-year to INR 41 crores. Revenue grew 34% to INR 42 crores.
  • Continued investment in marketing during the quarter, resulting in an EBITDA loss of around INR 11.5 crores versus a loss of INR 9.6 crores in Q1 of last yeare
  • Adjusted EBITDA after adjusting for ESOP expenses stood at a loss of INR 10.7 crores versus a loss of INR 7.1 crores in Q1 of last year.
  • Cash EBITDA loss in 99acres during the quarter stood at INR 11.7 crores versus a loss of INR 8.7 crores in Q1 of last year
  • Our traffic share amongst real estate portals remained around 60% during the quarter based on time spent as per SimilarWeb.
  • Broker billings form 50% of the overall billings, while builder billings stood at about 45% of the billings for the trailing 12 months ending June 30, 2018.
  • Homebuyers continue to prefer retail and rental properties over new launches which was evident from higher Q1 billing growth on account of agents.
  • Owner billings stood at about 5% of total billings for the last 12 months.
  • Key investment areas
    • Continued investment in marketing for 99acres to consolidate position in real estate classified business
    • More investment in products and technology.

Matrimony business - Jeevansathi

  • Jeevansathi billings grew 1% year-on-year in Q1 to INR 18.2 crores, owing to aggressive pricing and activity by competition during the quarter.
  • Revenue grew 4% year-on-year to INR 18.6 crores.
  • Higher marketing expenses in the quarter aided higher traction as number of paid transactions improved year-on-year.
  • Operating EBITDA loss in Jeevansathi increased to INR 5.6 crores in Q1 FY '19 from INR 4.1 crores in Q1 FY '18.
  • Adjusted EBITDA loss stood at INR 5.5 crores in Q1 versus a loss of INR 3.5 crores in Q1 FY '18.
  • Cash EBITDA for Jeevansathi during the quarter stood at negative INR 5.4 crores.
  • More than 90% of our users access Jeevansathi from their mobile, and the Jeevansathi mobile app continues to be the best in the category.

Shiksha business

  • In Q1, Shiksha billings grew by 22% year-on-year to INR 14.1 crores.
  • Revenue grew 11% year-on-year and reached INR 15.3 crores.
  • EBITDA profit of INR 3.1 crores in Q1 versus a profit of INR 2 crores in Q1 of last year.
  • Adjusted EBITDA profit for the quarter stood at INR 3.3 crores versus INR 2.9 crores last year.
  • Cash EBITDA was INR 2.1 crores versus INR 0.6 crores in Q1 of last year. 

Strategic investments- Policy Bazaar

  • The Policy Bazaar deal was announced in the quarter and will be concluded after statutory approval.
  • 28-30% stake in Policy Bazaar after the investments.

Information on Zomato

  • Zomato is increasingly delivering more and more of its orders through its own delivery system, which is Runnr and others, right, and less and less increasingly through third parties.
  • Zomato has 12 million orders a month run rate. Zomato expects to catch up and overtake the narrowing difference from Swiggy in a few months.
  • Expect no seasonality to ordering.
  • Zomato Gold has done very well and continues to do well.
  • Recently launched Piggybank - a loyalty program, which has within 48 hours of launch locked up a large number of subscriptions and sign-ups.


Other Concall Summaries of Info Edge

Ujjivan Financial Services Q4FY18 Concall Summary

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Financial Highlights

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  • Quarterly disbursement rose by 6% from previous quarter and 61% YoY to INR 2262 crores
  • The disbursement in the whole year grew by 13% in total to reach INR 8052 crores
  • The gross loan of the firm grew by 18.5 form March 2017
  • Firm through its operations has added 7.6 lakh new borrowers in the fiscal year
  • The share of MSE and housing finance saw twofold upsurge from the previous value of 2.4% to reach a figure of 7.3% , the major improvements came in the later part of the year
  • Net Interest income of the quarter grew by 24.8% from the previous quarter to reach INR 271.8 crores
  • Company healthy increase in the net margins which stood at 12.8 for the ending quarter up from 11.1% from the preceding quarter
  • Total credit cost of the year stood at INR 310.8 crores which was in line with the earlier predictions of the company
  • Both GNPA and NNPA of the firm has reduced since last quarter
  • The collection efficiency of the all the loans that had been passed since January 2017 is 99.6% which is good
  • Net Profit for the quarter stood at INR 64.9 crores which was considerably higher than the last quarter profits INR 29.3 crores
  • The ROA and ROE has improved since the last quarter and over the period of one year also since the last fiscal year
  • In coming three years time the company is eyeing for 33% business coming from the MFI and are expecting quarter of that to be secured loan


Ujjivan Financial Services Deposits.png
  • The deposit base of the bank stood at INR 3772 crore as of March,2018 out of the total deposit base 3.7% was CASA and 11.3% were retail deposits. Company is optimistic of gaining more traction in the retail deposits
  • The company is eyeing for 25% of the total deposit base to come from the retail at the end of this fiscal year
  • Around 50% of the total loan advances in Q4 2018 were covered by the deposit base against only 36% in Q3 2018

Microfinance Business

  • The total microfinance disbursements in the Q4 stood at INR 1910 crores
  • The loan disbursed to the individuals grew by 31.6% and also the total disbursement grew by 1.8% over the last quarter
  • The company took cautious stance after the demonetization and only those branches were given go-ahead where the efficiency of collection were higher and had returned to normalcy
  • The business in the MFI domain would ramp up in the coming fiscal year

Cost of Funding

  • The average cost of funding the operations of the bank reduced by 140 basis point to remain at 9%, the improvement came as the strategic result of repayment of legacy loans and increasing the deposit base which was at considerably less rate of interest
  • However the cost to income ratio of the company has worsened from 53.1% in 2017 to 67.1% in 2018   
  • Company at the start of the fiscal year had legacy funding of 64% which they have repaid to some large extent
  • They are hopeful of repaying remaining 30% in the current fiscal year

Risk Management

  • Bank has invested heavily in the risk management practices in form of KYC and AML
  • They have a dedicated team of individuals who look after the risk management
  • The credit policies and risk management practices have been formulated keeping in mind the specific type of risk faced in the branches and clusters

Operating Expenses

  • Operating expense of in the year showed marginal increase in comparison to last year because most of the opened branches were of URC type and had very low cost impact
  • Also the company estimates of the operating costs at the beginning of the year matched significantly with the end year results
  • This year the cost to income ratio might increase by 3-4% owing to multiple branch openings


  •  More than 60% of the customers would be with the company for more than 2 years now and another 30% could be in between 1 to 2 years
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Other Concall Summaries of Ujjivan Financial Services

Skipper Q4FY18 Concall Summary



Financial Highlights

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  • Revenue grew by 24.6% to Rs. 2074 crores
  • Net sales increased to Rs. 593 crores from Rs. 564 crores compared to corresponding quarters last year
  • EBITDA increased by 25.2% to Rs. 274.93 crores
  • Reported EBITDA increased to Rs. 108.58 crores from Rs. 101 crores in the corresponding quarter
  • Operating margin slightly increased to 13.3% as compared to 13.2% in FY17
  • PBT increased by 23.1% to Rs. 152.77 crores against Rs. 124.09 crores in FY17
  • Reported PBT and PAT numbers were at Rs. 74.08 crores and Rs. 49.53 crores respectively
  •  Board of Directors has recommended highest ever dividend of 165% for FY18
  • Requirement of Forex derivative gain to be reported on mark-to-market basis has resulted in increased profitability numbers of previous year
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Engineering product business

  • Engineering product business continues to demonstrate robust performance 
  • Secured or favourably placed in new orders worth in excess of Rs. 620 crores for engineering products, supplies from PGCIL, SEBs, telecom and solar companies and for various supplies across Europe and Southeast Asia
  • EBIT margins jumped due to execution of some high margin contracts
  • Company will have virtual monopoly in the upgradation of Northeastern infrastructure project

Polymer Business

  • Polymer business is expected to grow at around 40% in coming years
  • No plan of hiving off polymer business into separate entity
  • Performance of polymer business remains challenging due to uncertainties surrounding GST and after effects of demonetization
  • Robust demand from agricultural as well as construction sectors for polymer piping business

Plumbing Business

  • Share of plumbing business to be increased as it has better margins
  • The split between agriculture and plumbing business is targeted to be 50:50 as compared to 65:35 last year


  •  Total installed capacity is 265,000 tonnes per annum
  • Utilization of capacity is close to 90%
  • Capacity has been enhanced by 35000 tonnes during the year
  • Capacity addition of about 30,000 tonnes in upcoming year
  • PVC capacity is around 51000 per annum; utilization is nearly 50%


  • The company has received approval from core in railways for manufacturing of traction masts
  • Projects worth in excess of Rs. 40,000 crores have been announced to connect North-eastern states to rest of the country
  • Logistically well positioned to target these projects
  • Got approval in Mexico and Canadian Welding Bureau which qualifies the company to supply to North America as well
  • Strategy is to keep getting approvals and to keep interacting with customers in order to bid and secure projects

Order Book

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  • Total order book as on March end is Rs. 2627 crores
  • Well diversified between domestic, PGCIL and private players, SEB and exports
  • In the order book, 44% is PGCIL, nearly 40% is SEBs and other domestic customers and rest is exports
  • Bulk of the order book would be in SEBs, private developers and telecom in domestic side in upcoming years
  • Total order book to sales is at approximately 1.5x of last year sales
  • Growth from increased participation opportunity from export, Northeast and east India states like Jharkhand, Bihar and Odisha.
  • Ordering in TBCB has been dull this year

Growth Prospects

  • PCGIL’s plan to build intrastate transmission projects by tying up with SEB will give boost to industry
  • States like Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh and Telangana are increasing T&D spending to reduce AT&C losses and building infrastructure on high voltage lines
  • Flagship programs like Saubhagya, IPDS and DDUGJY disperse good investments and opportunity in this sector
  • Diversified portfolio will enable to tap opportunities in sectors like railways, solar and telecom and reduce its overdependence on a particular industry
  • Confusion among channel partners led to deferment in placing newer orders and holding onto their inventories
  • With effects of demonetization, GST and RERA waning off and revival in the economy coupled with GST benefits for organized players, growth to get back to 35 to 40 % during the year
  • One of the lowest cost producers of TBCB globally
  • Focus is to maintain a balance between growth and margins
  • Devaluation of Rupee has made Indian products more competitive
  • Customers in 30 to 35 countries

Vector Consulting

  • Vector Consulting Group to assist in polymer operations by implementing theory of constraints
  • Operations will be managed through a full-based replenishment system ensuring high availability at distributors with lower inventory in company’s supply chain
  • It will also aid in setting up and developing partnership with plumbers and contractors through a long-term loyalty program across relevant product range

Working Capital

  • Manufacturing of own raw material, MS Angle, extends working capital cycle by 45 to 50 days
  • Slight increase in overall debt number in the working capital


  • Total CAPEX plan is around Rs. 75 crores
  • CAPEX in engineering product business to be Rs. 55 crores including capacity expansion, maintenance CAPEX as well as test bed
  • CAPEX in polymer business to be around Rs. 20 crores including fittings, CPVC, HDPE as well as pipe business
  • CAPEX for FY18 was Rs. 61 crores

JV with Metzerplas

  • JV with Metzerplas is expected to start operation by October 2018.
  • Location of JV is Hyderabad, work has already started
  • Total CAPEX is about $4 million of which Skipper’s portion is about $2 million
  • To be funded by partly debt and partly equity


  • Total gross debt number is around 498
  • Debt with current maturity is around 45 crores
  • Debt to equity ratio stands at 0.78 as compared to 0.83 last year

Raw material prices

  • Not affected by increase in raw material prices
  • Any increase or decrease in raw material prices is passed on to the consumers


Other Concall Summaries of Skipper

Yes Bank Q4FY18 Concall Summary

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Financial Highlights

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  • The total assets crossed Rs 3 trillion mark in the Q4
  • Both total deposits and total loan crossed INR 2 trillion mark
  • International banking asset clocked the level of $2.8 billion which they have booked in the GIFT CITY
  • The NPA of the bank improved to 1.28% as compared to 1.72% in the quarter ended in last December
  • The net credit cost for the year was curtailed to 76 basis point even when the overall market expectations stood somewhere between 100 to 120 basis point
  • The guidance for the net credit cost for the coming fiscal is set somewhere between 50 to 70 basis points
  • The dividend payout ratio to remain at 17.7% 
  • Net profit recorded an increase of 29% in Q4 to reach the figure of INR 11794 million and for the whole FY the net profit grew by26.9% 
  • Net interest income showed an improvement of 31.4% over the preceding quarter and on YoY basis it grew by 33.5%
  • Income from non-interest services increased to INR 14210 million with an improvement of 13% over the preceding quarter
  • Cost to income ratio for the whole year improved by 1.2% to remain at 40.2% in comparison to the last fiscal year
  • ROA for the year stood at 1.6% and ROE for the year stood at 17.7% 
  • Total assets of the bank grew by 45.3% in the year to surpass the 3 trillion mark
  • Offshore assets through International Business Unit of the bank grew by 166% YoY
  • With a sequential growth of 90% and YoY of 54.1% the corporate business across the eight relationships groups stood 67.9% at the end of the Q4
  • Bank was able to maintain a healthy capital adequacy ratio of 18.4%
Yes Bank Q4FY18 Key Financial Parameters.png


  • Yes bank has been ranked overall #2 by the Ministry of Electronics and Information Technology across all bank segments
  • German Agency OEKOM research awarded YES bank the prime status which made it the only Indian bank to receive such a recognition


  • Funds through perpetual bonds of Rs 54.15 billion and Rs 70 billion of Tier-II bonds were raised

Risk Weighted Assets

  • Total risk weighted assets of the bank stood at INR 2.55 trillion
  • The ratio of the RWA to the total assets improved by 5% in the year
  • Bank has target of bringing the RWA to the total assets to 70%


Yes Bank Asset Quality Q4FY18.png
  • Sequential improvement in NPA from 0.93% to 0.64%
  • The PCR coverage at present is 50% with an improvement of 3.6% from the December
  • The Bank has set a target to raise the PCR to 60% by September

Asset Quality Composition

Yes Bank Sectoral Mix Q4FY18.png
  • Portfolio of the security receipts improved from 1.06% to 0.92% sequentially from December
  • Out of total outstanding security receipts of INR 18.8 billion recovery of 35-40% is expected in the FY 2018-19


  • YES Bank has exposure to only two accounts out 12 as listed by the RBI, and only accounted for 0.16% of the total advances
  • The provisioning coverage on the two accounts remains at 50%
  • In NCLT-II YES bank has exposure to the 7 bank accounts out of 28
  • Total loan amount for 7 accounts stood at Rs 6.5 billion with three major accounts amounting to Rs 5.7 billion
  • The provisioning coverage on 7 accounts remains at 43% 

Corporate Portfolio

  • The overall value of the corporate advances stood at 67.9% of the total advances
  • The sensitive sectors as classified by the bank are energy and power sector, Iron and steel, Telecom and gems and jewelry
  • 80% of the corporate portfolio has been rated A

Infrastructure and HR Resources

  • Bank has a total of 1100 branches and ATM network of 1724
  • Total headcount of the human resources stood at 18238
  • In order to improve the service levels, quality assurances and turnaround time back-office operations of the bank would be shifted to 700000 sq.ft. centralized center in Chennai


Other Concall Summaries of Yes Bank



Vip Industries Q4FY18 Concall Summary

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Financial Highlights

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  • Revenue growth of 16% corresponding to quarter of the previous year
  • Consolidated revenue growth of 10% over previous year
  • EBITDA growth of 79% compared to Q4 last year
  • EBITDA this quarter was 15.6% as opposed to 10.1% in Q4 last year
  • EBITDA growth of 89% compared to last financial year
  • EBITDA this year w as 14.3% as opposed to 10.9% last financial year

Business Updates

  • International business shrunk in Q4
  • Domestic growth was due to volumes growth
  • Growth in Aviation in giving strong tailwind to industries growth.
  • GST will strengthen formal economy hence in long run will be very beneficial for the company
  • Historically low sale Q4 has seen increased sales due to backpacks
  • Outlook for sales for  next year is very good


  • Skylar brand is growing very well
  • VIP brand is growing very well
  • Very intense campaign is being run for Carlton brand
  • Caprese, a ladies handbag brand, is doing very well
  • Caprese is currently in top three ladies handbag brand in India
  • All the four brands - Caprese, Carlton, Aristocrat and Skybags - are being advertised together for the first time

New subsidiaries 

  • Two new subsidiaries have been incorporated in Bangladesh – VIP Industries BD Manufacturing Private Limited and VIP Luggage BD Manufacturing Private Limited
  • One manufacturing facility under VIP Industries BD Manufacturing Private Limited in March 2018

Risks for VIP Industries 

  • Continued depreciation of rupee
  • Launch of aggressively priced products to counter competition

Canteen Stores Department

  • Canteen stores operate at 5% markup so distribution cost is negligible as compared to other channels
  • CSD business is coming down for VIP industries
  • CSD did not give high overdue at the end of Q4
  • CSD as a percentage of total revenue of VIP Industries is 20%


  • Hard luggage is manufactured in India in VIP factories
  • Soft luggage is mixture is manufactured in China and Bangladesh


  • Bangladesh factory capex was Rs 8 crores
  • Company is planning capex of Rs 20 crores for next two years


  • Market share of VIP industries has been highest for many years
  • Market penetration of the category very low around 20%

Raw Material

  • 50% of material is foreign country denominated ( both raw as well as finished goods)
  • Company maintains inventory of three to four months due to this effect of currency exchange rate fluctuation is seen in the next quarter results
  • In last few months Rupee has depreciated hence it will result in margin compression
  • Prices of raw material have increased
  • 50% of the material is purchased from China
  • Polycarbonate products which are manufactured in house in India are expected to grow for many years to come because they are strong and light


Welspun Enterprises Q4FY18 Concall Summary

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Infrastructure Highlights

  •  Currently the portfolio value of the HAM model stood at INR 7000 crores
  • EPC business of the firm which currently stood at INR 5500 crores might get escalated to INR 6000 crores
  • The first phase of the Delhi-Meerut Expressway was completed 14 months before the scheduled delivery date and company has already applied for the provisional completion certificate
  • They are hopeful to deliver other projects as well on or before time namely GSY, CGRG
  • The financial closure of the Aunta-Simaria had been completed already and the appointment date might get scheduled in the Q1 of FY 2019
  • Company had already started minting money from two of its projects and revenues from other projects are expected to come very soon
  •  In addition to the bid of Rs 1837.32 crores for L1 project, two other projects with the cumulative bid value of INR 2000 crores were placed
  • Company is hopeful of winning additional orders of INR 5000 crores and the revenue projections are expected to touch INR 1000 crores which would double year after year

Financial Highlights

  • The total income of the year ended stood at INR 1093 crores
  • EBITDA of the company showed whopping improvement of 145% from last year to reach the value of INR 166 crores
  • PBT and PAT increased by 225% and 154% respectively to reach the figure of INR 139 crores and INR 110 crores
  • Net worth of the company at the end of the year stood at INR 1457 crores with a cash surplus of INR 647 crores
  • Assets worth value of INR 726 crores were under investment at the end of the year

HAM Projects

  • In the Oil & Gas the company would invest between INR 150-175 crores in the coming years
  • In the Tamilnadu project an investment of INR 360 crores had already been done against the announced investment of INR 480 crores

Inland Waterways Business

  • The company would start bidding for the projects from Q2 FY2019 and is expecting to book orders of value INR 1000 crores

SPV Debt

  • The SPV debt of the Delhi-Meerut Expressway stood at INR 372 crores at the end of the financial year

Oil & Gas

  • The revenues from the oil & gas division are expected to come from Q3 or Q4 of the financial year 2020

Business Strategy

  • The company has the clear aim of gaining operational efficiency
  • The strategy remains simple, complete the project in the least possible time and the safest way possible by doing so they would be able to de-risk the investments


Other Concall Summaries of 



Wonderla Holidays Q4FY18 Concall Summary


Market update 

  • The annual revenue for the Indian Amusement Theme Park industry has been about Rs.17 billion and is growing at a CAGR of more than 17.5%.
  • The industry is estimated to grow to at least Rs.40 billion by 2020.
  • GST rates on the admission fee have been reduced from 28% to 18% by the GST Council.
  • The company is expecting double-digit growth in the number of footfalls at its parks.

Business overview

  • Wonderla received an aggregate of 2.5 million visitors in the FY2018.
  • The company saw a 5% rise in average ticket revenue per visitor.
  • The company believes that they are placed very well to exploit the industry growth.
  •  Wonderla currently has three operational parks and the fourth park is to be launched in Chennai where they have already acquired 62 acres of land.
  • The company is almost debt-free as of now.
  • Dividend payout order ratio for Wonderla stands at 26.5%.

Financial highlights

Q4 FY2018: 

Wonderla Q4FY18 financial performance.png
  • Company’s revenue decreased by 7.5% year on year from Rs.59.3 crores to Rs.54.92 crores which were driven by 12.1% year on year decline in footfall.
  • Company’s share of non-ticket revenue improved from 25.3% in Q4 FY2017 to 28.7% in Q4 FY2018.
  • In the Q4 FY2018 EBITDA increased by 79.2% from Rs.8.5 crores to Rs.15.2 crores. 
  • Company’s EBITDA margin almost doubled from 14.4% to27.8% in Q4 FY2018.
  • In Q4 FY2018 company’s PBT increased by 58.4% from Rs.4.2 crores to Rs.6.7 crores.
  • PAT grew by 9.1% from Rs.3.3 Crores to Rs.3.6 Crores.
  • In Q4 FY2018 cash PAT increased by 37% from Rs.9.8 Crores to Rs.13.4 Crores are indicating a continued generation of healthy operating cash flows.
Wonderla Revenue Analysis Q4FY18.png
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Pricing in FY2018

  • Price was changed three times, one pricing for April to June when Wonderla was in service tax regime; another pricing was there from July to February because of GST for amusement parks was brought down in February.
  • Wonderla’s goal is to maintain the price. However, a 2% overall increase has been taken compared to the previous year.

Tax rates charged in Q1 FY2018:

  • In Q1 FY2018 each park had a different way of charging taxes.
  • In Bengaluru last year Wonderla was charging only 5% entertainment tax, and a provision for the service tax was made.
  • There was no entertainment tax in Kochi, so only service tax was levied.
  • In Hyderabad, the entertainment tax was 20%, and the service tax was 15%. 

Resort business

  • 4% to 5% of the total business of Wonderla comes from resorts.
  • There has been a change in the strategy to move towards retail rather than corporate.
  • Wonderla in tying up with PayTM, Cleartrip and all the online OTAs.
  • The company has observed a bigger jump in the number of direct bookings because of the shift from corporate to retail.

Bengaluru park

Wonderla Bangalore park Q4FY18.png
  • Wonderla has seen a declining footfall in the Bengaluru park; a substantial decline has been observed in the group.
  • The company has stated pricing as the reason for the decline in the footfall. 
  • Bengaluru park is at least 15% more expensive than the other two parks owned by Wonderla.
  •  There has been an increase of Rs.200 in the price of a ticket from FY2017 to FY2018.
  • The footfall in the Bengaluru park has been about 10 to 12 lakhs.
  • Replacement cost for Bengaluru park is more than Rs.350 crores.
  • Company’s investment for the Bengaluru park is about 150 to 160 crores.
  •  In the starting, the Bengaluru park had about 40 to 45 rides now that number has increased to 62 in which 41 are dry rides, and 21 are wet rides.
  • Wonderla is developing a digital wallet system through which people can spend more money inside the parks. This system is piloting in Hyderabad and Bengaluru park.

Kochi park

Wonderla Kochi park Q4FY18.png
  • The company does not see a huge impact of the Nipah on the footfalls of the Kochi park.
  • In the beginning, Kochi park had about 10 to 15 rides the number has grown to 56 rides, out of which 22 are wet rides, and 34 are dry rides.
  • The company is looking for aggressive growth in footfalls for the next couple of years.
  • The company invested around 120 crores for the Kochi park and now sees its replacement cost to be around Rs.350 crores.
  • The company sees Kochi as the most price sensitive market and finds that group sales are higher in proportion.
  •  Kochi park saw a footfall of about 10 to 12 lakhs.

Hyderabad park:

Wonderla Hyderabad park Q4FY18.png
  • Hyderabad park was started in 2016 and Company has invested about 280 to 290 crores for the park.
  • For the FY2019 Q1 company has observed some good growth in Hyderabad, it is growing at around 17% regarding footfalls.
  • The company has beaten its estimates regarding the revival of footfalls at the Hyderabad park.
  • Wonderla has started a new big ride in Hyderabad, that ride does not exist in Bengaluru and Kochi park.
  • Hyderabad park currently has a total of 44 rides out of which 18 are wet and 26 dry rides.
  • The company is slowly spreading out to nearby towns like Rajahmundry and Vijayawada to increase the footfalls.
  • The reason for not getting a relatively healthy nonticket revenue has been stated that the base year was already high in Hyderabad because the park went for a dress code in the starting (2016) itself whereas, other two parks has implemented in the later part of the previous year.
  • Wonderla has started the piloting of the new digital wallet system in Hyderabad.
  • Hyderabad park saw a footfall of about seven lakhs, and the company targets a 13% footfall growth in the next year.

Chennai project

  • Company has decided not to build the park until the local body tax issue is resolved.
  • Wonderla is looking for a slight relief from the Tamil Nadu Government after which it will start the construction of park of which the design is almost complete.  


  • The company has put its utility cost under scrutiny.
  • The company is doing solar power purchase and have installed a solar panel, so utility costs are coming down
  • People cost for the company which is their highest cost is also coming down.
  • Spares and maintenance cost has also come down compared to the previous year.
  •  The company has been able to bring the marketing cost down because it is trying to do more performance-based marketing and referral-based marketing.
  • Wonderla made a movie ‘’The Mission Interstellar ride’’ at the cost of about Rs.3.5 crores.


Other Concall Summaries of  Wonderla Holidays

Welspun Corp Q1FY19 Concall Summary

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Company Overview

  •  In Q1FY19, excluding the Saudi business, company’s production and sales were respectively at 254,000 tonnes and 229,000 tonnes, up 12% and 9%, respectively, YOY
  • Including Saudi, the Q1 pipe production and sales were at 288,000 tonnes and 266,000 tonnes, higher by 26% and 22% Y-o-Y, respectively.
  • The plate and coil mill production stood at about 123,000 tonnes.
  • Sales was at around 128,000 tonnes in the current year. And of the sales mix, more than 70% was scattered to outside customers, keeping in line with the company’s efforts to reduce dependence on captive usage.
  • A currency depreciation of 5% between 1st April and 30th June has benefitted the company in terms of the derivatives getting repriced, and that has gone into their other income.
  • The average bid book to sales win ratio for the company stands at around 20-30%. 
  • The Forex derivatives impact amounted to INR 34 crores, included in other income.
  • The other operating revenue comprises of sale of scrap, the VAT income, the export benefits.
  • The company would try to maintain an EBITDA of around INR 8000 per tonne, for the India and U.S. business, taking a 4-quarter view.
  • The company expects to execute its 1.6 million tonne of order book over the course of the current financial year and the next.
  • Out of the total bid book of 3.1 million tonnes, the U.S. is almost 40%. Europe and MENA are about 30% and the balance, 30% is in India between oil and gas and water and the other segments.

Financial Highlights

Welspun Q1FY19 performance.png
  • In Q1, the revenue was up 25% Y-o-Y at INR 2,023 crore
  • EBITDA reduced by about 19% Y-o-Y at INR 220 crores and the profit after tax, after minorities and share in associates and joint ventures, was at around INR 47 crores versus a net profit of around INR 55 crores in Q1FY18.
  • EBITDA was distributed as under INR 50 crores in plate and coil mill business, and the balance from the pipe business.
  • EBITDA for the pipe business in Q1 was around INR 7,700 a metric tonne, slightly less, higher Q-on-Q, but down. 
  • The company has maintained an improved cash conversion cycle at around 30 days versus 34 days quarter-on-quarter.
  • Gross debt as of 30th of June 2018 went up by about INR 47 crores quarter-on-quarter and was at the level of about INR 1,433 crores. On a Y-o-Y basis, gross debt has been reduced by INR 598 crores. This was made possible due to the continuous efforts towards realigning the debt book to match the requirement of the business and also repayment and prepayment of debt wherever feasible. The company looks to continue pursuing that agenda.
  •  Net debt was higher by about INR 54 crores quarter-on-quarter and was at the level of INR 476 crores as at 30th of June this year. On a Y-o-Y basis, net debt has been reduced by about INR 388 crores. 
  • Including the Saudi operations, the net debt was INR 1,025 crores, which was lower by about INR 271 crores compared to last year's same figure.
  • The company remains committed towards conserving cash and continues to aim for a leaner balance sheet. Cash flow generated is to be used largely for debt repayment, except for required essential CapEx for the business.
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Order Book

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  • The company has booked more than 212,000 tonnes of pipe orders since their previous call, and this is reflected in the strong order book, which is at a level of about 1,602,000 metric tonnes (after executing 267,000 tonnes in the current quarter) and valued at over INR 11,000 crores. The figure was at around 1,657,000 metric tonnes in the previous quarter.
  • The bid book stands at over 3 million tonnes and the potential upcoming projects, which are expected to come up in the next couple of years and are spread across major Welspun markets, stand at a strong figure at over 15 million tonnes.

Domestic Market

  • In the domestic India market, demand is gaining pace across most segments.
  • The demand outlook for the plate and coil mills division continues to be promising, but the company needs to address profitability concerns.
  • The company expects a ramped-up production across markets in Q2 and Q3.
  • The company has made an EBITDA of INR 50 crores from the plate and coil mill, and it aims to achieve its previous year level of INR 170 crores.
  • A major increase in expenses has been caused by an increased freight and material handling and transportation-related expenses, which have gone up compared to previous period because of the sales mix in current quarter being based on destination, which means duty paid and delivery at destination.
  • The company believes if they are able to manage the steel in the supply chain well within time to the respective units, they can achieve a plant utilization factor of in excess of 85%.

Foreign Markets

  • With increasing emphasis on local sourcing requirements across all the key geographies including the U.S., India and the Middle East, players with local capacity are expected to gain. And Welspun Corp with sizable capacities in India, U.S. and Saudi Arabia is believed to be ideally poised to benefit from this policy change. 
  • The company has seen a demand uptick in the US market, with a growing order pipeline.
  • In the MENA region, oil and gas segment demand is expected to become more relevant in the second half of current financial year.
  • Q1 was a challenging quarter for their Saudi business, with a volume of about 35 KT and a reported loss of INR 27 crore, but the benefits of a strong order book would be evident from Q2 onwards.
  • The company has seen low capacity utilization of its Saudi mills, which have a production capacity of 300,000-350,000 tonnes. But a strengthened order book shows promise of a total production of around 275,000-300,000 tonnes, and a higher throughput would result in improved bottom lines.
  • The old order books have been liquidated for the most part, except for a few large orders left to execute, which are mostly in the water segment in Saudi.
  • Total volume form Saudi operations in the previous financial year was 96,000 tonnes.
  • The U.S. volumes in Q1 were of the magnitude of about 60,000-65,000 tonnes.
  • Some regulatory changes (such as duties on large dia pipes) have turned US into a market more relevant for local players. But for a few long seam capacities and long seam projects where US companies will have no option other than buying from outside the country, Welspun would be one of the preferred vendors for them. And they also have an annual capacity of 0.5 million tonnes between 2 mills in U.S.
  •  The company has seen quite a few projects that have come up for bidding, and out of the 3 million tonnes that in their bid book, a large portion is in the U.S. which they expect it to be awarded over the next couple of months.
  • In the U.S., the business booked by the company is all based on local sourcing of coil and with back-to-back cover, hence there is no exposure to coil prices.
  • Historically, U.S. business has been more profitable than India business, but that depends largely on the quality of orders.

Competitive Scenario

  • The competition has remained the same, with a slightly better order books, which might help in improving margins.
  • In India, taking water and oil and gas as 2 major segments, there are 3-4 players who are there in that market in water segment, which include Jindals and Ratnamani. 
  • In the oil and gas space also, several players exist. But not many of them will have the track record or the capacity to cater to the market. In oil and gas where there is concrete-based coating required, only 2 companies have that capability at this point in time, including Welspun.
  • In U.S. markets, there are 2 or 3 big players- major competitors being Staub, Vog. But Welspun is the largest player in that market, and enjoy a market share of around 25%.

New Initiatives

  • The company is setting up a spiral plant in Madhya Pradesh, capacity around 175,000 tonnes, basically to align their production capacity closer to the market with an expected CapEx of around INR 175 crores.
  • The spiral plant being set-up in Madhya Pradesh expected to be installed and commissioned in around 6-months, and would start to give benefits in the following financial year.
  • The company has announced a capex of INR 175 crores in MP, and they see a sizeable opportunity in MP, Rajasthan and Western UP in the coming years, hence maintaining presence in these states.
  • The spiral plant in MP would focus on the water segment at this point of time, but it also has the ability to handle the non-water space. They will also be enabling themselves to do API business as and when it is available.
  •  The company expects a payback period of roughly 5 years from the plant.


Other Concall Summaries of Welspun Group Companies

Tata Elxsi Q4FY18 Concall Summary

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Financial Highlights

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4th Quarter

  • PBT for the quarter exceeded Rs. 100 crores for the first time.
  • Offshore revenues are about 60% and onsite revenues are about 40%. IP based revenue is about 5%.
  • Automotive segment contributes 60% of revenue, Service segment 30% and Medical & Hospital 10%.
  • The full year constant currency growth is 15% and the Q4 constant currency growth is about 5%.
  • Total odd income for the quarter breakup is not available but for the whole year, it is about 43 crores.
  • Cash in hand is about 390 crores.

Business Growth

  • The revenue share of top 5 customers is 44% and top 10 is 57%.
  • All the key segments delivered reasonably good growth in the quarter.
  • There have been challenges in the year, with some of major engagements flattening out, some even declining a bit, but new engagements came in to compensate and provided growth. E.g. EPD segment as well as IDV segment saw some setbacks but what is really pleasing is that the setbacks were handled reasonably well.
  • Tata Elxsi is not looking for further expansion in EBITDA margins as they exceeded internal targets in the current year, so they are happy to maintain it in this range.
  • The industrial design has recovered marginally this quarter, but it is flat in FY18 basis overall. However, Management has figured out what caused the problem last year and most of that is now sorted out. This segment should show strong growth in FY19.
  • Jaguar Land Rover sales contribute about 22% of sales revenue. Engineering budgets will not be altered because the market is not picking up their existing cars, so the urgency with which Elxsi need to introduce new technologies only increased.
  • Utilization rate was the same as at the end of December, about 82%.

EPD Segment

  • 3 segments within EPD are the automotive, broadcast and medical segments
  • The big one is the automotive segment and that is maintaining the growth rate that had been for the last several quarters.
  • The second one is broadcast which again is fairly stable, despite the fact that the offerings there are going through a churn because of new technologies
  • Management is fairly optimistic about the future of the medical business which is right now a very small part of revenue.
  • Automotive is the fastest growing segment and it is about 60% of the total revenue.


  • Autonomous vehickle program has been enhanced to a full-fledged autonomous driving platform which have branded as Autonomai, and this was licensed to major OEM during FY18.
  • The company is in discussion with a number of people who have interest in the entire Autonomai as a full-fledged solution which would require some time to materialize and some time to execute. But the progress is fairly encouraging.
  • Services revenue would still be far more than the Autonomai revenue in the next 3-4 years.

Next gen Technologies

  • The new capabilities that have been built over the last 12-15 months have been relating to AR, VR, AI, analytics etc.
  • The progress so far has been mixed, off and on Elxsi seem to have good engagements in AR more than VR.
  • In the future, management intend in increasing  investment in the AI and analytics part of the business.

Problems solved using AI platform

  • In a car company, the application of AI is helping the car company get better organized for providing service or using predictive failure rates and so on.
  • In the broadcast business, they are trying using AI to predict subscriber churns and therefore what proactive action can customers take to prevent subscriber churn and so on.

Drivers of growth in Automotive segment

  • The two areas which are propelling business in the automotive industry.
    • Moving towards electrics and hybrids
    • Movin g towards enhanced assistance with the ultimate destination i.e. autonomous driving.
  • In terms of growth for the next year, Elxsi do not have guidance but in general terms, things are looking quite promising at the moment.


  • The company  sanctions budgets for in-house R&D depending on the effort. So it is very difficult to have a monetary value there, but the company certainly provides resources for doing in-house R&D.
  • Autonomai, requires a substantial amount of manpower, time and resources which Elxi allocated a couple of years back because without that, they couldn’t be a serious player in the automotive market.
  • They have also developed IP in the video world known as FalconEye when they saw existing solutions in the market were severely limited using in-house R&D.

What is stopping Tata Elxsi to be a 30% growth company

  • The market opportunity is big enough for Elxi to look at a 30% growth.
  • It is a question of matching the available skills to the available opportunity, and that requires a certain amount of anticipation and a certain amount of pre-planning.
  • Sometimes they get it spot on, sometimes they struggle a bit, but that is what is holding them back and they need to improve their planning process.

Business Development

  • The company looking to reduce the number of clients and want to deepen the relationship with existing clients.

Battery Management solutions:

  • In the future, multiple battery strategies are coming in, multiple power train strategies coming in, and more the variety the greater the opportunity for a company like Elxsi.

Airports and metro and highway:

  • Whenever the customer is sending out an RFP or a tender just for design services, Elxsi might very often win, but if it is clubbed with execution which means running an operation or fabricating something, they have to partner with people who can do that, and then Elxsi’s fortune depends on the fortune of the partners that they go with.

IP based revenues:

  • Currently it is not as profitable as services, because for every successful IP chances are that there is at least one other IP initiative which has not had that kind of success in the market, so that effort has not yielded results.
  • Potentially IP is very, very important for them not just for augmenting their margins but for survival itself.
  • In future Elxsi will win business demonstrating their IP which can be integrated into customer solutions and that is why the IP programs of the company are very important.


  • On an annualized basis, the company has 12% attrition. Typically, in 3-7 year the attrition is higher.
  • There are two drivers for attrition:
    • One is the desire of the people to study more - so whether it is the master’s in technology or even a business degree, typically they look at those at the end of the first three years.
    • The other driver is the product companies which have captives or setting up captives in India. They look at service companies as a hunting ground because they do not have any P&L responsibilities; they are able to throw a lot more money than a service company can, even if the work is less interesting.
  • So the company's effort is to make sure that all employees realize that the work that they are doing is far more interesting here and in a matter of a few years they end up working with customers in different parts of world and often in different businesses. And the overall value to their CV is much higher in a company like Elxsi than in a product company.


  • Work with Unity is slower than expected but these are skills which will be useful in many areas in the future, so Elxsi is staying invested and partnership with Unity continues to be strong.
  • Partnership with National Instruments is for automotive test and simulation and Elxsi is recognized as probably India's leading hardware-in-loop-simulation service provider for auto companies and that is in part, thanks to alliance with NI.

IP on block-chain

  • One of the IPs that was built, and which should be getting deployed pretty soon is V2X emulator. It is a vehicle to vehicle, vehicle to infrastructure simulator.
  • Block chain will get integrated with anything to do with V2X and it will be the company's endeavor to build block chain capability into their simulator.
  • Elxsi is not looking at block chain in areas outside of our current business, and in the current business, the vehicle-to-vehicle, a vehicle-to-infra is where block chain should have a play.


  • It is different in different geographies but in the automotive space, the company that is encountered most often is KPIT.
  • Cyient is also a competitor but what Elxsi bring to the customer is unique set of capabilities and the combination of design and technology is something that they have built up over the last 10-12 years. So, this combination is very potent and therefore is a key differentiator for Tata Elxsi.
  • A lot of international product companies have opened centers in India and whenever they open a new center, it is a bit of a challenge to Elxsi.


Other Concall Summaries of Tata Elxsi

Bajaj Corp Q2FY18 Concall Summary

Bajaj Corp.png

Financial Highlights

Bajaj Corp Q2FY18 Financial Highlights.png
  • The Company has closed the quarter with a turnover of Rs.204 Crores
  • The growth in turnover vis-à-vis the second quarter of last financial year is 3.84% with volume growth being 5.1%
  • The EBITDA for the quarter is Rs.59.6 Crores, which is a decline of 12.74% over EBITDA of Q2 of last financial year
  • The refund announced by the Government of India for units under the excise free zones in Uttarakhand, Himachal, and Assam have not been accounted while calculating above
  • The EBITDA without the refund being calculated is a very healthy 29.3%, but would have been over 32% if the refund has been accounted for
  • The profit before tax and profit after tax are Rs.64.5 Crores and Rs.50.7 Crores respectively.
  • In terms of cost of raw materials and packaging materials, the strain continues
  • The average purchase price of LLP as well as refined mustard oil  in the second quarter is  Rs.51.80 which is much higher than the Rs.44.55 per kg that was the purchase price in the second quarter of last financial year
  • There is increase in overheads as salary costs are increased by 32% YOY, as the management is building bench strength in all the departments
  • The sale of Nomarks cream, which is being actively promoted, has grown by 48% in this quarter
  • The price increase in raw materials has been largely compensated by input tax credit
Segmentwise Qtr wise Sales Bajaj Corp Q2FY18.png

GST Impact

  • The wholesalers continue to be watchful and have not reacted positively post the implementation of GST
  • 22317 wholesalers listed in the ERP system out of which 8801 have not yet started buying from our distributors after the implementation of GST
  • Though the Government of India have extended the dates for filing GST returns for July and August most of the distributors are finding it very difficult to file the GST return
  • With the strain on wholesale channel the importance of direct distribution would be very high, so focus is on increasing numbers of distributors as well as outlook covers by field force

Distribution Channel

  • The share of wholesale was more than 50% of the total turnover, it has dropped to below 40% already and is expected to drop even further
  • As of September the total number of distributors has gone up from 9695 as against 7707 as on March 17, 2017
  • During Q@FY18, two sales verticals namely canteen stores department and international business have shown a negative trend as a result the sales to CSD have declined by 21% in the second quarter.
  • The outlook for CSD, which is now under 5% of the total business, does not look very promising for the remaining part of this financial year

International Business

  • International business, which has been a growth driver for the company, had also declined during the second quarter by 15.4%
  • The regions of MENA have shown the highest decline of 35% led by loss of sales in UAE and KSA


  • The Innovations Center started in April by housing the R&D Center in Mumbai has started working
  • With help of R & D the company plan to launch at least differentiated and well researched product every quarter from here on

Industry Update

  • The volumes in the hair oil industry have grown by 6.7% as against 50.6% during the last quarter
  • The volumes of the light hair oil industry have slowed down a little and slowed down to 2.6% however  the lead brand  of the company Bajaj Almond Drops continues to outpace the light hair oil industry with an off take growth of 4.8%
  • The rural volume growths of the total hair oil had dropped from 12% in the first quarter to 4.8% in the second quarter of this financial year.

Future Prospects

  • Going forward the primary objective is to be able to reach as many people as possible
  • Focus is also on increasing the reach of direct distribution otherwise company would lose a bit of what it is communicating as a brand as you cannot control the reach of the advertisement
  • The growth in CSD is not expected in future quarters because of policies (to scale down)the  Ministry of Defense and Canteen Store Department is following
  • The volume growth in Nomarks is expected to grow in future quarters as the company is moving into more settees with the concentrated chemist plant which will increase its base