GMM Pfaudler Concall was today at 4:30 pm
Here are the key highlights of the Conference call π
@jitenkparmar @safiranand @arpit971 @AnyBodyCanFly
Here are the key highlights of the Conference call π
@jitenkparmar @safiranand @arpit971 @AnyBodyCanFly
Updates:
β’ Large account of sales this time gave profitability
β’ Power and fuel cost were in line
β’ Further margins to improve because of new electricity plant at Gujarat
β’ In terms of export and proprietary business, planned strategy is fully getting implemented
β’ Large account of sales this time gave profitability
β’ Power and fuel cost were in line
β’ Further margins to improve because of new electricity plant at Gujarat
β’ In terms of export and proprietary business, planned strategy is fully getting implemented
β’ Order on hand: At around 350 crores. As this order gets shipped, management feels to get more profitability in terms of margins.
β’ Pharma and chemical sector are looking very very strong
β’ Most of the demand from pharma and chemical is new demand.
β’ Pharma and chemical sector are looking very very strong
β’ Most of the demand from pharma and chemical is new demand.
Glass Lined front: Margins should remain at same level.
β’ Hyderabad facility has been opened up to cover the backlog.
β’ Price realization is good in the sector and this could done well
β’ Demand from replacement (has 7-8 year cycle)is around 15%, and and new demand is 85%.
β’ Hyderabad facility has been opened up to cover the backlog.
β’ Price realization is good in the sector and this could done well
β’ Demand from replacement (has 7-8 year cycle)is around 15%, and and new demand is 85%.
β’ Glass lining is locally and metal work is done in India. This saves margin.
β’ Market share is 50-55%, and management expect to increase 10-15% very easily.
β’ Market share is 50-55%, and management expect to increase 10-15% very easily.
β’ Competition from local market: Need for quality is increasing in India. Pricing remain low focus on that of quality. This led to good growth for the co.
β’ Production of Interface is continuance in process. Mainly will start in Germany. Prototype expected to be ready in Dec
β’ Production of Interface is continuance in process. Mainly will start in Germany. Prototype expected to be ready in Dec
Flouro Polymer: Used for in house consumption, however few customer also demand for this product. Company doesn't plan to expand this segment. Main focus would be glass segment.
β’ Germany segment will soon recover from COVID, hence this will also be turned positive EBIDTA soon
β’ Germany segment will soon recover from COVID, hence this will also be turned positive EBIDTA soon
Industry aspect: Chemical growth is about if 6%
Pharma growth is about 7% in the quarter.
Company is expecting to see good growth from it expansion of 2.6 Billion $ spend in last 2 year in China and Germany
Pharma growth is about 7% in the quarter.
Company is expecting to see good growth from it expansion of 2.6 Billion $ spend in last 2 year in China and Germany
Order book:
Order this quarter remained better compared to previous quarter and Q2 of Fy 2020.
175cr of order this Q2FY20 which was 170cr in Q1. While this was 100cr in Q1 of FY 2019.
Will remain strong in US and China,
Order this quarter remained better compared to previous quarter and Q2 of Fy 2020.
175cr of order this Q2FY20 which was 170cr in Q1. While this was 100cr in Q1 of FY 2019.
Will remain strong in US and China,
GLE segment:
β’ Order of 800 -900 crore remained same (this was reduced a bit).
β’ Pricing war: Company doens't expect to have margin fight, due to increasing demand of quality. Hence premium from large customer such as SRF, Divis will have low impact on price.
β’ Order of 800 -900 crore remained same (this was reduced a bit).
β’ Pricing war: Company doens't expect to have margin fight, due to increasing demand of quality. Hence premium from large customer such as SRF, Divis will have low impact on price.
β’ Usage of Debt: Majorly for the acquisition, however due to COVID, working capital need was increase so remaining balance would be conserve for working capital
β’ China which was at negative EBIDTA due to relocation will be turned positive.
β’ China which was at negative EBIDTA due to relocation will be turned positive.
Our Conclusion:
β’ Overall the operational front remain positive.
β’ Company is expecting to increase its market share by more 10%.
β’ Quality is now in the focus of Indian business, hence less price war to be expected.
β’ OFS issue will remain to lesson for the company
β’ Overall the operational front remain positive.
β’ Company is expecting to increase its market share by more 10%.
β’ Quality is now in the focus of Indian business, hence less price war to be expected.
β’ OFS issue will remain to lesson for the company
β’ β’ β’
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