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It has expanded its dealer network to 11200 from 10500 last year, while also developing suppliers, sourcing 78% of its needs from local suppliers/MSME. They have bolstered their board strength with senior industry people like BP Rao, ex CMD, BHEL and SS Mundra, ex DY Governor, RBI as replacement to board members completing terms. Interestingly, employee strength fell 12%, from 6,536 to 5,781- the first time in 5 years, after a CAGR of 13% from FY16-19, as part of its delayering and cost rationalization. Further observation is that per employee cost (Emp...
Ramkrishna Forgings (RMKF) 4QFY20 performance was weak. A sharp decline in domestic M&HCV; sales adversely affected its domestic revenue (-54% YoY). Export revenue also plunged 40% YoY, driven by slowdown in the Class 8 truck segment. EBITDA margin contracted 363bps YoY to 16.5%, due to a negative operating leverage, while PAT (reported loss Rs 63mn) was suppressed by a higher depreciation and interest cost. The company is in the midst of a demand slump in the domestic CV and...
Berger Paints (BRGR) result was below expectations. Revenue on standalone basis declined at a higher rate compared to Asian Paints (APNT) largely due to higher stress in industrial coatings. However, on consolidated basis, Berger outperformed APNT led by (i) strong performance of a subsidiary in Poland (41% international revenue share, 4% PAT margin) led by higher exposure to external insulation and construction projects business which were not subject to lock-down (ii) inclusion of STP LTD revenue (acquired in Nov'19). Gross margin expansion is likely to sustain led by deflationary raw material cost trend. Only 10% of raw material is imported from China, hence no...
Operating performance: Slump in volumes was offset by robust pricing scenario in Gujarat during Q4FY20 (NSR +19%y/y)andsofterenergycosts.Accordingly,EBITDA/te ofSNGIstoodatRs1,069sturdygrowthof65%y/ywhile absoluteEBITDAgrewby~12%toRs514mn. Leverage position: Total Net debt/EBITDA of company...
Background: Berger Paints is the second largest decorative paint company in India. The Company operates seven manufacturing facilities spread across India, and four overseas manufacturing facilities. The company has second largest distribution network of ~11,500 active dealers and ~12,000 tinting machines. Berger has a strong presence in East and North India, which accounts for 60% of its distribution network while South & West India accounts for 40% of distribution network. Company derives ~80% of revenue from decorative paints and the rest from industrial paints of which Automotives accounts for 8%, powder coating...
Page Industries (PAGE) reported lower than expected Q4FY20 numbers with revenue declining by 11% YoY at Rs 541 Crs vs Est Rs582 Crs impacted by steep fall in volumes (down by 19% vs 8% decline as estimated).COVID-19 led shutdownsince the beginning of March'20 largely impacted PAGE's sales in Q4F..
Management stated on the call that Apr20 sales were negligible, May20 sales were down 6070% YoY, and Jun20 sales (while relatively better than May) are a long way off from normal. Moreover, management further stated home delivery is unlikely to have a significantly positive impact in the current year due to models being in the early stages. Additionally, the surge witnessed in demand in off-trade outlets in the first few days following the resumption of operations in a few states has tapered off significantly. It also increasingly appears that bars, restaurants, and pubs (20% of sales) would re-open only in 2HFY21. expansion to a combination of positive price/mix and more stable input costs. Employee costs were up 140bp YoY to 9% of sales and other expenses 20bp YoY to 32.6%. Consequently, standalone EBITDA margins for 4QFY20 were In FY20, sales/EBITDA/PAT registered growth of +0.5%/-23.1%/-24% YoY.
Background: Balkrishna Industries (BIL) is focused solely on 'off-highway' tyres catering to agricultural & industrial segments. The company has a ~7% share of the global market. While OTR forms ~65% of the global market, for BIL, it only contributes ~33% to its revenue. The company has been undertaking various actions like setting up warehouses in markets in North America and Europe to be closer to the customer and have a just in time (JIT) system. The company sales cover over 130 countries through distribution network in Americas, Europe, India and Rest of the world....
