CCL Q2 FY21
Key points
A thread
1. Domestic Business slow but Vietnam unit very strong performance. (Consolidated Numbers good)
2. Large US order gives visibility for the full year in Vietnam unit
3. 9k-10K Mt could be the total volumes from Vietnam for the year.
Key points
A thread
1. Domestic Business slow but Vietnam unit very strong performance. (Consolidated Numbers good)
2. Large US order gives visibility for the full year in Vietnam unit
3. 9k-10K Mt could be the total volumes from Vietnam for the year.
4. Capacity utilization: Spray-dried-80%, Freeze-dried: 65% (mainly due to 2 months of plant shut down).
5. Margin profile Spray-dried: Freeze dried= 1: 2-2.5
6. Domestic Branded business did very well (Rev 60 Cr in H1) (70% growth YoY). Still in a minor loss.
5. Margin profile Spray-dried: Freeze dried= 1: 2-2.5
6. Domestic Branded business did very well (Rev 60 Cr in H1) (70% growth YoY). Still in a minor loss.
7. Hoping to cross 100 Cr revenue in domestic branded business in FY21
8. European Supermarket business order for next year also secured which gives visibility.
9. Small packing business plant to be fully operational by the next financial year.
8. European Supermarket business order for next year also secured which gives visibility.
9. Small packing business plant to be fully operational by the next financial year.
10. Institutional business has slowly started picking up towards the end of the quarter.
11. Swiss facility & Vietnam facility has taken short term WC loan (cost of funds 1.5%).
12. Disturbance still continues during the pandemic but off-take has improved substantially.
11. Swiss facility & Vietnam facility has taken short term WC loan (cost of funds 1.5%).
12. Disturbance still continues during the pandemic but off-take has improved substantially.
13. Volume growth both in India and Vietnam this year will be from Spray-dried more than the freeze-dried.
14. MEIS benefit capped at 2 Cr for Q3, 8.5 Cr realized in Q2. If restrictions get lifted in Q4, 10-12 can be received given the current turnover run rate.
14. MEIS benefit capped at 2 Cr for Q3, 8.5 Cr realized in Q2. If restrictions get lifted in Q4, 10-12 can be received given the current turnover run rate.
15. Around 40 Cr of MEIS benefits are generally availed every yr.
16. New capacity in Vietnam will be commenced by March 2021.
17. Coffee brands all over the country are niche in nature but not generating enough volumes to threaten the traditional market of instant coffee yet.
16. New capacity in Vietnam will be commenced by March 2021.
17. Coffee brands all over the country are niche in nature but not generating enough volumes to threaten the traditional market of instant coffee yet.
18. Volume growth target for the yr- 10%.
19.Branded business distribution: the last yr was 65000 outlets, today it is 75k, by year-end- 1 lac.
20. By end of the year expect to touch all 10 lac plus towns.
21. 4-5% Mkt share in the top 10% of the retail outlet.
19.Branded business distribution: the last yr was 65000 outlets, today it is 75k, by year-end- 1 lac.
20. By end of the year expect to touch all 10 lac plus towns.
21. 4-5% Mkt share in the top 10% of the retail outlet.
22. Because of substantial inventory from the March quarter, despite the 2 months shut down of the freeze-dried unit, the domestic revenue was about 70%.
23. Growth in branded business has come from all channels: e-com, modern trade & Kirana store
23. Growth in branded business has come from all channels: e-com, modern trade & Kirana store
24.Demand -supply dynamics remain stable as per the management.
25. No reduction in demand, but there has been some postponement of orders from clients.
We might have missed a few imp points which we will cover in our blog post soon.
25. No reduction in demand, but there has been some postponement of orders from clients.
We might have missed a few imp points which we will cover in our blog post soon.
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