Motherson Sumi Systems Ltd.    
02 Jul 2020
97.65
1.09%
Management Call: Business Reorganization of Motherson Sumi

Conference Call with Management and Analysts on the restructuring of the Motherson Sumi company, and impact on shareholders and management. Listen to the full confcall transcript here

Motherson Sumi Systems Ltd.    
02 Jul 2020
97.65
1.09%
Motherson Sumi board approves reorganization of its business

The Board of Directors of Motherson Sumi Systems (MSSL) at its meeting today approved a group reorganization plan, creating what the company said is "a simplified corporate structure for growth of businesses across product portfolios within auto components space and allied operations."

The reorganization plan approved by the respective boards of MSSL and Samvardhana Motherson International Limited (“SAMIL”) among other things, entails the demerger of Domestic Wiring Harness (“DWH”) business from MSSL into a new company which is in the process of being incorporated as a wholly owned subsidiary of MSSL (New Co.). It also involves the subsequent merger of SAMIL into MSSL to consolidate 100% shareholding in Samvardhana Motherson Automotive Systems Group BV (“SMRP BV”) as well as to bring all auto component and allied businesses in SAMIL under MSSL.

The proposed reorganization will according to management, simplify the group structure and enable "MSSL shareholders to benefit through 100% stake in SMRP BV". Chairman Vivek Chaand Sehgal said that this reorganization "has been a long-standing request from our shareholders" The process also creates a separate independent entity for the DWH business with focused approach on this business

The Board of Directors officially approved

1) Demerger of DWH business of MSSL into New Co., which will eventually be listed, with mirror shareholding as that of the Company.  For every 1 share held in MSSL, 1 share of New Co. would be allotted

2) The Board also approved the merger of SAMIL, the principal holding company of Motherson Group and promoter of MSSL, into MSSL. For every 10 shares held in SAMIL (of face value Rs. 10/- each), 51 shares of MSSL (of face value Re. 1/- each) would be allotted.  MSSL will be renamed as Samvardhana Motherson International Limited

Motherson Sumi Systems Ltd. is trading above it's 100 day SMA of 88.0
Trendlyne Marketwatch    
02 Jul 2020
LIVE: Markets close higher, MOswal buy on Phoenix Mills

The market closed on an upbeat note. Nifty 50 closed at 10563.60 (133.6, 1.3%) , BSE Sensex closed at 35843.70 (429.3, 1.2%) while the broader Nifty 500 closed at 8656.15 (101.4, 1.2%)

Market breadth is in the green. Of the 1644 stocks traded today, 963 were in the positive territory and 634 were negative.

  • Bayer Cropscience, Navin Flourine hit fresh year highs today.

  • Motilal Oswal notes that Phoenix Mills faces a challenging scenario in the near term, but maintains a BUY noting that it is one of the best proxy plays on India's consumption story.

  • Jubilant Life Sciences is rising today on high volumes, hitting a fresh 52 week high. 

  • Top gainers today include APL Apollo Tubes, which discussed end of year and June quarter results in its earnings call, Polycab India and Timken India. 

  • Pfizer and BioNTech said that testing of two dosages of its BNT162b1 covid vaccine on 24 healthy volunteers showed higher COVID-19 antibodies than what is usually seen in infected people. The drug is one of 17 vaccines under active trials, as companies race to be the first to bring one to the market. 

  • Bajaj Auto's share price is up after it reported its sales for June. June sales of two wheelers was down 27%, the company said. 

  • Emami Realty CFO Girija Chaudhary has resigned.

  • Markets are up today morning. Nifty 50 was trading at 10511.40 (81.4, 0.8%) , BSE Sensex was trading at 35685.46 (271.0, 0.8%) while the broader Nifty 500 was trading at 8622.25 (67.5, 0.8%). Market breadth is ticking up strongly. Of the 1517 stocks traded today, 1077 showed gains, and 386 showed losses.

Riding High:

Largecap and midcap gainers today include Tata Power Company Ltd. (49.65, 7.70%), Motherson Sumi Systems Ltd. (104.10, 7.21%) and Mahindra & Mahindra Financial Services Ltd. (185.35, 6.95%).

Downers:

Largecap and midcap losers today include Hindustan Petroleum Corporation Ltd. (215.30, -3.17%), Emami Ltd. (221.65, -2.76%) and Endurance Technologies Ltd. (857.05, -2.27%).

Volume Rockets

26 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Phillips Carbon Black Ltd. (100.25, 12.32%), APL Apollo Tubes Ltd. (1781.20, 9.94%) and Sterlite Technologies Ltd. (126.80, 7.87%).

Top high volume losers on BSE were Sterling and Wilson Solar Ltd. (218.35, -4.96%), Future Consumer Ltd. (15.05, -4.75%) and IndiaMART InterMESH Ltd. (2120.00, -4.09%).

Adani Green Energy Ltd. (357.95, 4.99%) was trading at 27.1 times of weekly average. Timken India Ltd. (1008.30, 4.43%) and eClerx Services Ltd. (473.00, 4.65%) were trading with volumes 20.9 and 13.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks hit their 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Bayer Cropscience Ltd. (6237.90, 4.31%), Gujarat Gas Ltd. (321.05, -1.70%) and IDBI Bank Ltd. (48.60, 4.97%).

Stock making new 52 weeks lows included - Omaxe Ltd. (114.35, -10.00%).

26 stocks climbed above their 200 day SMA including APL Apollo Tubes Ltd. (1781.20, 9.94%) and Sterlite Technologies Ltd. (126.80, 7.87%). 4 stocks slipped below their 200 SMA including IndiaMART InterMESH Ltd. (2120.00, -4.09%) and Eicher Motors Ltd. (18348.40, -0.29%).

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Rites Ltd.    
01 Jul 2020
258.55
-0.21%
Earnings Call Transcript - Q4FY20 for RITES Limited

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

Britannia Industries Ltd.    
01 Jul 2020
3673.60
-0.31%
Britannia: Let's put a smile on that face

by Suhani Adilabadkar

Thanks to all the biscuit ads, we know the stated goal of Indian biscuit brands: a quick and easy snack to cheer someone up, especially a kid. The flavors too, are accordingly framed: chocolate, vanilla, strawberry, all family and kid-pleasing tastes. The pitch in the pandemic age is not that different - this quick snack will soothe boredom during lockdowns and keep energy levels up. Britannia, the market leader is counting on that continued appeal. With 35-40% biscuit market share,  Britannia Industries is seeing tailwinds within Covid-19 headwinds - the stock is up 40% over the past three months.

Quick Takes:

  • Revenues jumped 2.5%, operating profit 4% YoY and PAT grew 26% YoY at Rs. 372 crore in Q4 FY20.

  • Britannia’s top and bottom-line suffered 7-10% downside due to the March shutdown. Commenting on Covid-19 effect on the business, Mr. Varun Berry, MD Britannia Industries said, “While we faced some challenges in the first month of the lockdown, we recovered quickly and got approvals for operating all our factories and depots across the country”.

  • The company initiated 80-20 strategy focussing on 20% of its products giving 80% of volumes.

  • April recorded 20% and May 28% YoY revenue growth compared to corresponding period previous year.

  • Though one of the most deeply penetrated food categories, covering over 90% of Indian households, per capita biscuit consumption is still low at 2 kgs in India against 10 kgs in developed countries.

Britannia is among the most trusted food brands in India with a wide and growing portfolio of products encompassing biscuit, bread, cake, rusk and dairy products. Through its 100 year legacy the firm has built a brand stable ranging from the ubiquitous to the niche - Britannia Marie Gold, Milk Bikkis, Britannia 50-50, Good Day, Nutrichoice Digestive, tempting Chocolush croissant, Treat Stars and Treat Burst.

The company has revenues in excess of Rs.10,000 cr, sells 100 crore packs every month, has 5.5 million outlets in India which are expected to breach 6 million in the next three years. Britannia’s foot print is spread across Middle East, GCC countries, North America, Europe, Africa and South East Asia with being market leader in Nepal and second in command in UAE. 

A Steady March Quarter 

Britannia reported decent numbers for the March quarter FY20 amidst some discernable Covid-19 impact on its top-line. Revenue came out at Rs. 2,868 crore in Q4 FY20 against Rs. 2,799 crore same period previous year, rising 2.5% YoY. Operating profit stood at Rs. 454 crore growing 4% YoY in march quarter FY20 compared to Rs. 436 crore corresponding quarter previous year.

Operating margin stood at 15.8% contracting 24 bps YoY in Q4 FY20 adversely impacted by inflation in key raw materials especially palm oil and milk prices. PAT for the quarter jumped 26% YoY supported by corporate tax reduction and stood at Rs. 372 crore compared to Rs. 295 crore same period previous year. Commenting on Covid-19 effect on Britannia’s business, Mr. Varun Berry, MD Britannia Industries said, “The Covid-19 pandemic impacted human lives and economies significantly, globally, disrupting supply chain and operations of several businesses. While we faced some challenges in the first month of the lockdown, we recovered quickly and got approvals for operating all our factories and depots across the country”. 

Downside from shutdowns

Biscuits are part of every Indian household’s food basket, and is widely considered as an essential. Though one of the most deeply penetrated food categories, covering over 90% of Indian households, per capita biscuit consumption is still low at 2 kgs against 10 kgs in developed countries.

In the Indian landscape with more than 400 manufacturers, three competitors stand out, Parle Products, ITC and the current market leader, Britannia. With a top management change in 2013, Britannia re-energised its growth wheel leading to market share gains and overtaking Parle Products in the last three years. The company had battled slowdowns for the past so many quarters and witnessed good recovery in the Jan-Feb period, and was expecting a high single to low double-digit growth before Covid-19 struck.

Consequently, top and bottom-line suffered 7-10% downside and the March shutdown reduced revenue growth to just 2%. But countering shutdown restrictions, and moving swiftly ahead of competition, Britannia started its operations with four factories and four depots in the first week of April. The company initiated a 80-20 strategy focussing on 20% of its products giving 80% of volumes leading to higher manufacturing efficiency in the present precarious covid scenario. Currently operating at pre covid levels, from early June, Britannia is slowly getting back its entire product basket which includes bread, cake, rusk and dairy products. 

Customers turn to packaged foods

Good Day is the number 1 and Marie Gold is 6th most trusted food brand in the country. Britannia, while the urban centric, market leader in biscuit segment is the largest player in organized bread market and holds the runner up position in cheese. It  is now moving towards becoming a ‘Total Foods Company’. The company has recently introduced milkshakes, wafers, lassi, yogurt drinks, pizza breads along with croissants and salty snacks undergoing test marketing. These new product categories are currently contributing 2% to the revenue mix. Britannia is also moving deeper into the rural market, increasing its distribution from 18,000 distributors last March to more than 21,000 by the end of March FY20.

This has helped to counter the slowdown which has been more visible in rural regions than urban areas and though rural market is growing faster, growth rates have slowed. Especially in the biscuits segment, the glucose chunk is stagnant for years now, and even value cookies and value cream biscuits are not growing at a higher rate, thus growth is coming from medium premium products such as Marie and Milk Bikkis. 

But Covid might have turned the tables in favour of packaged food as biscuits, wafers, cakes, yogurt drinks, bread, juices and other dairy products such as lassi, cheese slices and cheese spread are doing well. People are restraining themselves from street food, restaurants and hotels are still not open, movie theatres are not functional and thus as a consequence, higher intake of packaged food is driving volumes in the post covid scenario.

Britannia is getting back to its expansion plans, and factory construction in Bihar, as well as the Ranjangaon expansion is already underway with planned factories in Tamil Nadu, its strongest state. Besides TN, UP is exhibiting strong growth momentum in demand, with the expected capex in the range of 200 to 300 crores. So far this year, Britannia has weathered the pandemic with surprising agility, and its revenue growth stood at 20% YoY in April and 28% YoY in May, first two months of Q1 FY21. It makes for an impressive performance in an unusual year. 

Britannia Industries Ltd. has gained 32.59% in the last 3 Months
Trendlyne Marketwatch    
01 Jul 2020
LIVE: Markets close higher, Glenmark Pharma falls on US charges

The market closed on an upbeat note. Nifty 50 closed at 10430.05 (128.0, 1.2%) , BSE Sensex closed at 35414.45 (498.7, 1.4%) while the broader Nifty 500 closed at 8554.75 (80.0, 0.9%)

Market breadth is balanced. Of the 1637 stocks traded today, 834 were in the positive territory and 761 were negative.

  • Aarti Drugs hits another fresh high today. The stock has a high Trendlyne Durability Score and is rising on expectation of good growth from its API (Active Pharmaceutical Ingredient) and formulation business.

  • Share price of Glenmark Pharma is going in the other direction. The company allegedly conspired with pharma firm Apotex Corp and other generic drug companies to increase prices of cholesterol medication pravastatin, as well as other drugs.

  • Motilal Oswal is a buy on CESC, noting the improved performance of the company's distribution franchise. 

  • The NCLT has reserved its order in the plea by State Bank of India to recover Rs. 1,200 crore in dues from Anil Ambani.

  • Bank of Baroda is rising today. The bank says it plans to raise Rs. 2000 crore via bonds.

  • APL Apollo Tubes is rising post Q4 results announcement. The company's net sales consolidated for the quarter was down 9.8% YoY and net profit down 7.9% YoY. 

  • Uflex is rising post results, with its March quarter standalone net sales down over 8% YoY. 

  • Markets are higher but volatile in morning trade. Nifty 50 was trading at 10344.80 (42.7, 0.4%) , BSE Sensex was trading at 35080.14 (164.3, 0.5%) while the broader Nifty 500 was trading at 8502.60 (27.8, 0.3%). Market breadth is in the green. Of the 1506 stocks traded today, 826 were gainers and 618 were losers.

Riding High:

Largecap and midcap gainers today include Axis Bank Ltd. (433.25, 6.54%), Indiabulls Housing Finance Ltd. (220.15, 6.28%) and Bank of Baroda (51.40, 5.76%).

Downers:

Largecap and midcap losers today include Adani Green Energy Ltd. (340.95, -4.99%), Edelweiss Financial Services Ltd. (59.70, -4.94%) and Jindal Steel & Power Ltd. (153.75, -4.80%).

Volume Shockers

10 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Caplin Point Laboratories Ltd. (346.50, 10.92%), KRBL Ltd. (261.55, 6.28%) and Suprajit Engineering Ltd. (152.45, 5.54%).

Top high volume losers on BSE were IndiaMART InterMESH Ltd. (2210.30, -4.94%), TeamLease Services Ltd. (1650.20, -1.80%) and Garware Technical Fibres Ltd. (1361.20, -0.52%).

TCNS Clothing Co. Ltd. (339.35, -0.16%) was trading at 6.5 times of weekly average. Navin Fluorine International Ltd. (1691.30, 4.27%) and JSW Energy Ltd. (48.85, 3.61%) were trading with volumes 5.1 and 3.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks took off, crossing 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Escorts Ltd. (1033.85, -0.59%), Gujarat Gas Ltd. (326.60, 2.62%) and IDBI Bank Ltd. (46.30, 4.99%).

Stock making new 52 weeks lows included - Omaxe Ltd. (127.05, -9.99%).

14 stocks climbed above their 200 day SMA including Caplin Point Laboratories Ltd. (346.50, 10.92%) and Sterlite Technologies Ltd. (117.55, 6.77%). 9 stocks slipped below their 200 SMA including Omaxe Ltd. (127.05, -9.99%) and Colgate-Palmolive (India) Ltd. (1374.80, -2.27%).

APL Apollo Tubes Ltd.    
01 Jul 2020
1722.25
0.47%
Earnings Call Transcript - Q4FY20 and Q1FY21 for APL Apollo Tubes

Conference Call with APL Apollo Tubes Management and Analysts on Q4FY20 and Q1FY21 Earnings Performance and Outlook. Listen to the full earnings transcript.

Highlights from Management

FY20 Performance

22% increase in sales volume in FY20. FY20 was impacted by challenging macros, slowdown in construction activities, weak market liquidity and final knock with Covid-19. APL Apollo consolidated its leadership position in structural steel tubes with market share improvement to 40% vs 36% in FY19

The operations and manufacturing activities at all offices and plants had been temporarily closed till the government announced relaxations. The company resumed operations at its plants gradually from 22 April 2020 onwards from Raipur. The company today announced its sales volume performance for the quarter ending June 30, 2020.

Company further improved working capital cycle which generated strong operating cash flows of Rs5.1bn. It helped fund capex and two acquisitions worth Rs4.3bn. Net debt reduction by Rs266m to Rs7.8bn.

APL kick started mass branding exercise with TV commercials, Outdoor media and other below-theline activities. Benefits visible in form of market share gains in FY20.

We expect momentum to continue once sales volume reach normalized levels after COVID-19 disruption.

Q4FY20 Performance

Q4 commenced on a healthy note with Jan-Feb witnessing revival in construction activity. The company was forecasting double digit sales growth for the quarter before the lockdown. Covid-19 disrupted supply chain and impacted the demand after 15th March; then there was a complete lockdown post 23rd March.

EBITDA/Ton declined 5% yoy to Rs3,200 due to volume loss in March owing to COVID-19 impact .

Interest cost declined 17% yoy backed by debt reduction. Depreciation costs increased 48% yoy due to capacity expansion. Net profit declined 8% yoy to Rs 568 mn.

Debt/Equity ratio improved to 0.6x from 0.8x in FY19. Debt to EBITDA improved to 1.6x from 2x in FY19, and Interest coverage ratio improved to 3.8x from 3x in FY19.

Q1FY21 Update

APL Apollo Tubes registered sales volume of 238,311 tons in Q1FY21 (61% of Q1FY20 volume and 59% of Q4FY20 volume). As a one-time special disclosure during COVID-19 pandemic, the company has also announced net debt of Rs. 3,700 crore provisionally for the June quarter of the Financial Year FY21.

Currently debtors are spread across 800+ distributors. We are evaluating channel financing options to further minimize debtors and delayed capex spends.

Building Material companies guiding for 25-30% volume decline, while Structural steel Tubes is set to outperform other Building materials.

Cera Sanitaryware Ltd.    
01 Jul 2020
2212.90
-0.20%
Earnings Call Transcript - Q4FY20 for Cera Sanitaryware

Conference Call with Cera Sanitaryware Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript

NOCIL Ltd.    
30 Jun 2020
104.30
4.25%
Earnings Call Transcript - Q4FY20 for NOCIL

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

136.00
-4.80%
Earnings Call Transcript - Q4FY20 for Century Plyboards India

Conference Call with Century Ply Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript

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