"Good Replacement demand as preference is being given to personal mobility"
Here are the Key takeaways of the call😀👇
- Ceat has 3400+ dealers and 300+ exclusive franchise.
- There was strong replacement demand and pent up demand.
- replacement demand grew by over 35%.
- Overall raw material price increased.
- Took a price hike to mitigate the increase in raw material price.
- Plant utilization is at high levels and new facilities ramping up well.
-In the Current quarter Ceat continued to invest in advertising with there sports partnerships
- demand scenario continues to be strong. OEM, 2 wheeler demand is little slow.
- For the next 6-9 months time frame company is very positive in respect to demand in every category.
- About 500 crore project capex is planned this year, out of which 250 crore is already done. Project capex is over and above maintenance capex.
- Both raw materials, crude and rubber, price have gone up.
- There was a 3% increase in price, in the month of December, across category except 2 wheeler.
- There was no inventory accumulation. Inventory levels are uncomfortably low. Generally inventory of 1 month is kept but now it is less.
If the company had more inventory they could have sold more.
- Company will have to take another 3% price hike to cater to the increase in prices of the raw material.
- Maintenance capex of 150 crore is done every year.
- Replacement has been strong as there was a personal mobility demand among people and rural has been strong as well.
- CV segment has also grown very well.
- In 2 wheelers segment there are hardly any import.
- Next 9 months looks good because of low base effect.
- Company does not want to overprice the products as compared to competitors.
- As volume is growing, company needs to employ more people. Company keeps provision to pay bonus and some employee incentives.
- Price increase has not been sufficient so to make up with the raw material price some price hike is required.
- Overall industry had enough supply to cater to the demand. company has been short of supply in some categories.
- People are using personal vehicles more, so more replacement demand.
- Debt level came down by 370 crores since the beginning of the year, working capital debt also came down by 300 crore.
- Project capex of 250 crore is done till now.
- As company does capex, keeping in mind cash levels, additional debt will be taken as and when required. Current debt levels are not the peak debt levels.
- On average there is positive growth in volume demand.
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"Target to purchase 20% of the new music this year for the next 30 year"
Here are the key highlights of the call 😀👇
Business Updates:
• There has been slow and steady growth and the industry is slowly coming out of Covid.
• Entertainment and Education has seeing a good growth in digitization.
• Saregama is in a good position to take the advantage of the digitization.
• Cost has been tightened over the past 2 quarter.
• Company debt company last year, has been reduced a lot.
Growth Driver:
• Primary driver for the 24% sales growth is the Carvaan sales and the music right.
- Specialty chemical: There were enhanced volumes across products. Enhanced volume led to better utilization of capacity of multi product and dedicated plants as well
- Capex is on track.
- Revenue from existing products continue to improve.
Technical textile business: this segment gave a steady business as there was faster than expected recovery in Tyre industry.
- Domestic demand for refrigerants is picking up.
- Company will focus on sales ramp up from newly commissioned plants in Thailand and Hungary.
Business Update:
• Business has been reveamped and seen good growth.
• Tier 2 and Tier3 has seen good growth.
• Q3 turned out to be more than what we expected.
• EBIDTA Margins attained a new higher.
Gas Price:
• Remained same than that of past quarter. Avg Price in Northern India is 25-26 price, which was 30-31 last year
• Out of this around 50% of this price is for long term
Segment:
Bathware & Sanitary is already CF +. Ply will take more 2 year for generating cash flow.
Business Updates:
• Company has managed to maintain the new normal and looking for steady growth.
• Business has returned to new normal.
• Second wave of covid has lesser impact
• Over past 3 months company has maintained operational efficiency
• Collaborated with Deerfield Discovery and Development (3DC) to advance integrated drug discovery projects
• Co. has also collaborated with virtual system in order to communicate with the clients easily.
• Expansion Hyderabad facility will increase the operational aspect