Conference Calls and Earnings Call Transcripts for NSE and BSE Stocks

Conference Call with Subex Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen in to the full transcript. 

Conference Call between Godrej Properties Management and Analysts on Q4FY20 and Full Year performance and outlook. Listen in to the full transcript. 

Key Highlights from Executive Chairman, Godrej Properties, Pirojshah Godrej

- We are looking after the approximately 10,000 construction workers currently remaining at our sites. There will be a near term impact on construction progress. Even post lockdown construction will not come back to 100% speed overnight.

- We are well placed to weather this situation, thanks to the nearly Rs. 2500 crore cash on our balance sheet. We will focus on cost containment and cash generation. We will also benefit in the medium term in our shift away from labor intensive to precast construction.

- We expect a reduction in sales in the short-term. However we believe over time there will be an increased desire to pursue home ownership and the security it offers. In China April residential sales showed strong YoY growth after the worst of the pandemic had passed, and we expect the same to happen here in India. 

- We expect COVID19 to speed up the process of industry consolidation, as buyers become more inclined to purchase from established developers rather than smaller ones. We believe smaller developers will partner with larger developers with strong balance sheets and execution capabilities. 

- This quarter was a strong one - we had our highest ever residential cash collection of Rs. 1,401 crore which led to positive net operational cash flow of Rs. 484 crore. This was made possible by the Godrej Properties team. The total sales of the quarter stood at Rs. 2,383 crore, a QoQ growth of 100% and YoY growth of 10% despite Q4FY19 being our previous best ever. 

- The volumes sold over the quarter was 3.61 mn sq feet, including over 500 apartments sold in the second half of March. One of the key sales highlights: we were able to launch 3 new projects in the same city in one quarter, selling nearly 700 crore worth of homes (Pune). 

- Buyer sentiment has been hit particularly at the higher end of the market with COVID19. 

- Total value of bookings in FY20 stood at Rs. 5915 crore, highest ever from GPL, and 8.8 mn square feet also the highest ever. We also sold 1.1 mn square feet of bookings over Rs. 1000 crore in major cities. We also saw rapid construction completion in multiple projects, and we are reducing the construction timeline for projects. 

- In Q4FY20 our revenues increased by 5% to Rs. 1,261 crore, and net profits at Rs. 101 crore. Full year revenues stood at Rs. 2,829 crore and net profit increased 6% to Rs. 267 crore. GPL added ten new projects during the year with a saleable area of 19 million square feet.  

Conference Call between Piramal Enterprises Management and Analysts on Q4FY20 earnings performance and outlook. Listen in to the full transcript.

Conference Call with TCI Express Management and Analysts on Q4FY20 Earnings Performance and Outlook. Listen in to the full earnings transcript.

Call Participants: Mr. Chander Agarwal - MD, Mr. Mukti Lal - CFO

Introductory remarks from Chander Agarwal

Good evening everyone and welcome to the fourth quarter and full year 2020 earnings call of TCI Express Limited. I would like to thank all of you for joining us during the ongoing health crisis caused by Covid-19 and hope that you and your loved ones are doing well and keeping safe. On this call, we will start with a quick business overview of the full year followed by the discussions about the impact of Covid-19 on the industry and the business and how we are getting ourselves to manage the impact of this pandemic. Our earnings presentation has been uploaded on the website and stock exchange and I hope you had a chance to review it. 

Now coming to the results, I am pleased to report overall encouraging performance review of the financial year 2020 despite the challenging economic and the business environment. 

• On a full year basis, TCI Express delivered a total income of Rs 1,036 crores. It’s flat compared to last year. EBITDA was at Rs 126 crores with margin of 12.1%

• Our company delivered a robust growth in profit after tax of 22.3% to Rs 89 crores

• During the year, we continued our focus on enhancing margins through high capacity utilization, penetrating deep in the cities and tapping into growing SME and of course the efficient working capital management

• The company distributed a dividend of Rs 4 per share for full year with a pay out of 17.2%

• TCI Express has added 17 new branches in the year to penetrate deeper in the selected geographies and this strategy has been successful in contributing to the company’s growth

• We have incurred a total capex of Rs 32 crores towards the construction of new sorting centres in Gurgaon and Pune. The construction of these centres were halted earlier due to the NGT path and now due to Covid-19, it has got delayed further. However, we have got the government approval to restart the construction at these centres and are hopeful that our new sorting centres will commence operations in the third quarter of fiscal financial 2021. We are putting our current efforts in making that happen

• The complete automation and implementation of business intelligence and our sorting centres will result in shorter turn on times, higher utilization and enhance operational efficiency in the long run

• Furthermore, it is important to note that the business environment during the year remains challenging with the economic slowdown in the year 19-20. 

• Despite all the challenges, the company delivered a top line growth of 5% in the first 11 months from April 2020. March is considered to be the best operational month where we see high movement of goods and stock clearance. However, with the unfortunate India shut down because of Covid in the middle of March, it impacted our business performance

• Although the nationwide lockdown dropped business to a halt and disrupted economies, we stand in full support with the decisions taken by the government. During these difficult times health and safety of our employees, partners and other stakeholders remain our utmost priority

• With the announcement of lockdown on 24th of March, the company allowed work from home policy and promoted video and audio conferencing tools to interact internally and externally

• Our offices resumed on 20th April and we have taken various initiatives such as we have created a limited workforce, sanitization, social distancing at our workplace, employees screening at regular intervals, mask and sanitizer distribution. We believe that all these measures are critically important to ensure safety of our employees at the workplace

• Covid-19 impact on the industry - The business environment came to a grinding halt with the announcement of the nationwide lockdown in March. Markets rapidly deteriorated in March with the closure of factories and offices along with interstate movement and that has really impacted the transportation logistics sector. Covid-19 has impacted all categories of industries and India’s growth sector also declined by 6.5% in March and is particularly climbing in April as well

• The pandemic has been rapidly evolving on a daily basis. Government has extended lockdown multiple times and now with some relaxation, the economic activity has started but at a lower capacity

• Last mile delivery is facing challenges such as strictness and restrictions especially in interstate movements in the metro cities such as Delhi, Calcutta, Bombay due to high cases of coronavirus coupled with migration of labour adding to the transportation challenges

• We have taken a series of strategic initiatives to mitigate businesses - 1) Cost structure optimization. We are reviewing all our cost heads negotiating with our business partners and objectives to reduce fixed cost. Cost effective measures are more efficient communication to reduce travels and fuel operations footprint. 2) Collaborating on various projects to deliver health equipment like ventilators and medicines. With all these initiatives, we are committed to optimize our cost structure and improve our margins of profitability 

• Moving ahead, the actual impact on the business will depend on the severity and the course of Covid-19 in the near term and we shall have a better clarity in the coming days once the lockdown is lifted

• I believe we are better placed than other companies as we are asset light, we have the money with a strong balance sheet which will allow us to navigate through these unprecedented times with also being more stronger

• We are confident that we will remain the preferred partner of choice for offering time defined services to our clients

Conference Call with Capri Global Management and Analysts on Q4FY20 Earnings Performance and Outlook. Listen in to the full earnings transcript.

Call Participants: Rajesh Sharma – Managing Director, Ashish Gupta – Chief Financial Officer, Hardik Shah – Vice President (Corporate Strategy) 

Introductory Remarks from Rajesh Sharma

Good afternoon everyone and thank you all for joining us on this call. I hope you and your families are safe in these unprecedented times. This is an extremely challenging time for all of us and our thoughts are with those all of us who are affected by Covid-19, particularly those who are on the frontlines of this crisis. I would like to highlight some of the ways we are responding to Covid-19. We are focussed on being there for our employees, our customers, our clients in this unprecedented environment and climate. While we don’t know how this will play out and how long this will go on, we will be transparent here about what we know today.

Our number one priority is to continue to provide services in an uninterrupted way while we are also providing a safe work environment for all of our team members. We are incredibly proud of all that our firm has been able to do over the past few weeks. The need of the hour was to ensure that we provide our work through the right tool to ensure that they effectively can discharge remotely including operations and finance team, sales credit risk managers by ensuring their safety and well being. Currently, we have the majority of the workforce working from home across the company except the collection team. For those who still need to go to the office or into a branch, we are taking extra precautions and being extremely mindful of their safety. We are aiding in other ways to further incidents by offering free Covid related medical treatment for all our employees and their dependants. 

To cater to various capabilities during this challenging time, we distributed groceries and essential items to almost 4,700 families. We have been associated with the 8 NGOs to reach out to the daily wage workers, strangulated families and children to deal with this pandemic situation. On the consumer side, we are proactively trying to service customers through every possible mode. The customer care team is actively in touch with the customers via calls, emails, and our business team is reaching out to customers and educating them about the impact of moratorium and other policy decisions. We continue to support our customers and clients by providing liquidity and advice during this market environment. 

On the business front, Covid-19 lockdown has not any impact on our ability to render services to our customers or lenders. The sales team are actively interacting with customers, reassessing their portfolio and assessing their risk and further any requirements if any decision to cater to. I would now like to discuss the highlights of fourth quarter financial performance. During Q4, the firm reported net interest income of INR 94 crore, profit after tax of Rs 35 crore and an annualized return on equity was 9.9%. While the underlines of this quarter fundamentals performed very well, we reported numbers of significant items. Given the uncertainty over the potential macroeconomic impact, we have made extra provisions for expected credit loss on the financials for Q4FY20 and full financial year 2020. Accordingly, the company has increased the outlay by increasing the probability of default and loss we will default by 15% - 30% and made provisions of about INR 36.6 crores specifically pertaining to Covid-19 impact. Based on the current and the future economic conditions, we consider these provisions to be adequate. 

I would now talk through some key metrics. We continue to be extremely prudent of our expenses and continuously try to improve our employees’ productivity through utmost use of technology. This has in time assisted us in bringing down our cost to income ratio to 38.4% in FY20 against 46.6% in FY19. We are primarily funded by leading Indian banks and we constitute almost 95% of our borrowing mix. During the last 12 months, we have dealt in maintaining a strong liquidity position with addition of new bank lines of Rs 2,000 crores and underarm credit lines of about Rs 605 crore ending FY20. It is the highest ever in the history of Capri Global. 

Additionally, we have around Rs 435 crores of special investment which make us well placed on the liquidity front at this point to tackle any short term headwinds. Also, we have one of the highest capital adequacy ratio in the industry at 38.7% which places us well for future growth. We reported a strong and healthy FY20. Our profit after tax for FY20 stood at Rs 1,612 crore, a grow of 19% from YoY. Our net interest income was 20% higher at Rs 3,872 crore for FY20. MSME lending continues to be the key focus area and constitute 51% of the book, while the rest of the contribution comes from construction finance and housing finance constituting 24% and 22% of our overall portfolio respectively. 

Asset quality remains healthy with GNPA - 90+ DPD portfolio at 2.36% and net NPA at 8.79%. Our net interest margin has improved to 9.5% in FY20 compared to 9.3% in FY19. Our RoE stood at about 11% while our return on average assets stood at 3.7% for FY20. We have also received approvals from the largest lender of the country for securitization of loans of Rs 500 crores. We continue focusing on expanding our retail book with successful adoption of low cost technology. 

While the government and the RBI have taken multiple measures to boost economic growth, sentiment is still weak and recovery is going to take some time. RBI also took unprecedented measures of permitting moratoriums for all the loans till May 31st. We applaud them for the same. However, there are moral hazards in potential behavioural issues by the borrowers that we need to be careful about. During the severity of the situation, RBI will be required to take more and more such measures for NBFCs and housing finance companies and the government must intervene to take measures on revival specifically for sectors like real estate, hospitality, etc.

Conference Call between YES Bank Management and Analysts on Q4FY20 Earnings Performance and Outlook. Listen in to the full earnings transcript.