- Tourism segment was affected the most during the pandemic.
- Unique proposition is through mass transportation where they connect people to places of religious importance.
- Each tour has 700 to 800 people. Last tour which company started got filled in 4 days.
Tourism evolution
- Tejas is a travel moat
- In Mass tourism all things are taken cared off.
- 2 bharat Darshan trains are running at great capacity. And planning to complete many such tours.
- company is getting good response under travel segment sharing with us the thought that covid fear is now low.
-Tejas trains didn't got viable occupancy at time of launch but now they are staring again 2 at a time
On Water
- By March end company is planning to go around 18 lakhs bottle per day
- 3-4 plants were commissioned in 2021.
- There are some stations which has only Rail Neer available. In coming times more and more stations will be declared Rail Neer dedicated stations.
- Bought out water is purely handled by railways, Company has no say in it.
- as of November 465 trains were operational (festival season was there). Irctc currently cater to ticket booking of 400 trains.
- If booking is over done in any train, another train is run immediately.
- Catering company has instructions to sell ready to eat meal only. That has to be sold at MRP only.
- in catering business , margins will be much higher then pre covid level as when the things are going into better position
- This quarter company has booked 55 million tickets.
- For future leadership , government have a procedure for that and in next 3 to 4 months things will be much clearer
- Company chares 20 rs for sleeper and 40 for ac
- Unreserved seats has been converted to Booking seats.
- Bottle is sold at Rs.15 a liter and company purchases it at 5.5 and adds gst and logistics cost and transfer it at seller at Rs. 10 or 10.5
-Company have a margin of 1.5% on it.
- Company gets a license fee from the manufacturer as well, as a side income.
- Anyone who has seen the convivence of booking the ticket online will rarely go to the counter for ticket.
- A small segment of people will still go to the counter as a person with the ticket from counter, if is on wait list then he is considered as person with ticket.
But the person who has an online ticket but is on waitlist then he will be considered as ticket less.
- Upi and bhim had 15% in past now they have 22% share.
- Capex
- 150 crore plan was there for all the project
- all Capex are delayed by 1 year
- hotel Capex was only done with khajrao so it got also delayed.
- The miles program is been expected to be launched this year
- Once the operation gets back to pre covid level the ebitda will go up.
- 25000 new registrations per day. 6 crore is the total data base of customers with the company. Active users are 5 crore.
- Company is only authorized to book tickets online & are the lowest service charger at flights
- Rs. 15 is convenience fees for non ac seat & Rs. 30 is the convenience fees for ac seat. As the ac seats increase, the contribution of convenience fees in the revenue will increase.
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"We are witnessing a huge investment in manufacturing sector consequent to domestic demand growth and localization under atma Nirbhar bharat programme."
Here are the concall key takeaways π
π§΅π
Financial highlights
- Business continued to stage and encouraging recovery and has almost scaled up to last year's qiarter level
- An improved customer buying sentiment continued in Q3 supported by more stable business environment
- Casflows remain stable
- Revenue from operations recovered 90.9%
- Ebitda was Rs. 81.56 crores. Driven by improved profitability across all segments
- Tax expense was Rs. 12.96 crores
- Net profit grew 86% compared to last year quarter.
Business Updates:
β’ Contributor for this year was the robust product basket.
β’ Formulation contribution of 39%.
β’ See product filing in image
β’ Continue investing in infrastructure.
β’ De-bottle-necking the plant continuous to remain online.
β’ Expanding capacities in key API.
β’ See the segment revenue breakup in the image.
β’ Dedicated a special plant location for CRAMS Facility.
β’ Richcore will be named as Lauruas Bio and acquired 100% in Richcore
Business Updates:
β’ Closed with 300 customer.
β’ Plants started in phases. Recovery of textile sector in pandemic was slow.
β’ Price of certain products has reach to pre-covid level.
β’ With new capacity company is going to do filaments yarn and spurt yarn.
β’ Bio-degradable fibre has capable of bio-degrade in land and ocean within an year.
β’ company will be also starting short cut fibre which have application in cement industry.
β’ Company is also working on re-cycle footprint which will have edge in the market over long term.
Munger: What was interesting was how talented they were and then also got in so much trouble. It also demonstrates general system of finance involving derivatives is irresponsible.
Warren: Here you had extremely experienced people operating with their own money.
β’ They went broke. Why do people risk losing something very important to gain something thatβs totally unimportant? The added money has no utility whatsoever.
- MDF segment has margin of 24% during the quarter. There was price hike during the quarter as some raw material prices also went up. Company is planning 200 bps improvement in margins
- The current quarter looks good so the company is planning for 100 percent to 110 percent capacity utilization for both plants.
- The company have divided forex loss in 2 parts: 7 crore in interest and 1 crore above EBITDA.