Questions across 26 calls

Bharat Shah

ASK Investment Managers

KEI Industries Limited

KEI Industries Limited CC-Mar24.pdf · 2024-05-03

Good morning, Just one question. Given the kind of macro scenario that exists as a backdrop in power projects, constant buildup of the new power projects in conventional renewable energy, real estate construction activity, and in general, almost re building India's industrial and manufacturing kind of a setup. That is what kind of a picture we are undergoing. So given that backdrop, what is the picture you would visualize 4, 5 years ahead in terms of growth rate, for the overall industry opportunity and for KEI, in particular, both in the industrial as well as household and kind of improvement in capital efficiency or otherwise, laid by margins or otherwise, if you can draw up a picture as to how do you see the coming 5 years? And secondly, would you describe the period ahead, probably as one of the most significant ones in the history of KEI or it is that I'm putting words in your mouth. So I want to hear whether you as one of the industry leaders, do you believe that the period end is probably the most defining one for this industry in the longest time or it is just my imagination?

And on capital efficiency, as you mentioned, that scale up would occur, opportunities to do so are already visible, you're preparing yourselves for it. You earlier mentioned about copper price that it really doesn't change anything on a longer term because it's a bit of a pass -through. Keeping in mind all of these, how do you see the capital efficiency improving or otherwise over time? Will it be margin-led? Will it be scale-led or both or any other factor?

Dixon Technologies (India) Limited

Dixon Technologies (India) Limited CC-Dec23.pdf · 2024-01-31

Over the last two years, if you see, it has been a bit of a bittersweet kind of alternating situation. More bitter in the earlier part and relatively more sweet in the now more recent past. Well, we all learn the perils of forecasting in investing. We're learning through all t he time of the perils of forecasting and how basically all of us can go wrong. But -- and you still have a right to judge and forecast the future. So with all that has flown under the bridge over the period of time, especially last two years or so, how str ongly now we feel about the future? Because we too have gone through our own learning curve and experiences and some of the unanticipated issues that may have cropped up. So with all that behind, we having learned more business, having received some positi ve tailwinds in the recent past, how do we view the future now? Both, in terms of our competitive strength, the growth, the opportunity and, of course, the margins and profitability?

No, no. There has been no doubt about the quality of growth and the transparency and candidness with which all these issues have been dealt with, not just in good times but in difficult times as well. So , on that, 11 marks out of 10. There is no question about it. The quality of the growth has been sound. It has been disciplined. And it has remained focused on -- in the longer end of the strategic agenda. But what other -- and I understand that the mobile pho ne is a huge opportunity. And you do have good reasons to believe that you'll have lion's share of outsourcing in mobile phones. So that should give you -- that should put you in a good state to grow at a meaningful pace. But given all of that, given the f act that manufacturing ecosystem is getting more mature, having acquired scale, with different experiences with the customers and others have been going through. And as I mentioned, some challenges have been going through. Do we now believe something -- typically, sometimes, we'll do well? Something may not do well. And that is the way business would be always, as you correctly pointed out. But do we feel approximately, we should be able to q uadruple our business in, say, four to five years' time, which is roughly like 35% to 40% kind of a growt h rate? Depending upon whether five years or four years, we quadruple, is that a realistic possibility? Or do you think that's too high?

Ambuja Cements Limited

Ambuja Cements Limited CC-Dec23.pdf · 2024-01-31

Kapur Saab, last year we had a detailed discussion about the strategic roadmap and some of the contours in terms of the cost and other things are beginning to get visible. But I wanted to take an opportunity and check with you as to what your overall visi on of the industry Ambuja combines plays under that and some of the more tangible guideposts in terms of volume, profitability, and capital efficiency over a 3 to 5 years' time frame? I am aware of the roadmap that you had drawn and indicated, but my personal opinion is that maybe this is probably the Indian cement industry's one of the best periods ahead. This is my personal understanding. But I would like to have some more clarity from your end as to how you view it and Ambuja combines plays under that overall opportunity for the industry.

But return on capital employed of 19% to 20%, would you not regard it as a little less ambitious? Because, today's Indian cement industry is placed in the global context on many qualitative parameters and is much more distinguished than before. Industry i tself has consolidated. Underlying demand drivers in terms of real estate, housing, and infrastructure, all that appear to be robust. And it looks very clear that the industry which has grown in the last 20 years at 6% to 7% per annum in volume terms should do a lot better on a l arger base in the next 20 years. Therefore, consolidation of the industry, improvement of the practices, very clearly the global level capability and capacity emerging, and the opportunity highway and our stringent focus on internal efficiency and raising the bar there, 19% to 20% in a consolidated industry for a lead player, would you not regard it as somewhat underwhelming?

ACC Limited

ACC Limited CC-Dec23.pdf · 2024-01-31

Kapur Saab, last year we had a detailed discussion about the strategic roadmap and some of the contours in terms of the cost and other things are beginning to get visible. But I wanted to take an opportunity and check with you as to what your overall visi on of the industry Ambuja combines plays under that and some of the more tangible guideposts in terms of volume, profitability, and capital efficiency over a 3 to 5 years' time frame? I am aware of the roadmap that you had drawn and indicated, but my personal opinion is that maybe this is probably the Indian cement industry's one of the best periods ahead. This is my personal understanding. But I would like to have some more clarity from your end as to how you view it and Ambuja combines plays under that overall opportunity for the industry.

But return on capital employed of 19% to 20%, would you not regard it as a little less ambitious? Because, today's Indian cement industry is placed in the global context on many qualitative parameters and is much more distinguished than before. Industry i tself has consolidated. Underlying demand drivers in terms of real estate, housing, and infrastructure, all that appear to be robust. And it looks very clear that the industry which has grown in the last 20 years at 6% to 7% per annum in volume terms should do a lot better on a l arger base in the next 20 years. Therefore, consolidation of the industry, improvement of the practices, very clearly the global level capability and capacity emerging, and the opportunity highway and our stringent focus on internal efficiency and raising the bar there, 19% to 20% in a consolidated industry for a lead player, would you not regard it as somewhat underwhelming?

Apar Industries Limited

Apar Industries Limited CC-Dec23.pdf · 2024-01-30

Kushal, on the US cable front, I'm a bit surprised because whatever I am talking to the other cable manufacturers, US situation for cable demand has been very buoyant. I mean, KEI, for example, is running short of capacity. Otherwise, they would have more than doubled their exports to America. So, am I missing something, why America?

That's interesting. This is a bit contrary to what I assumed or I thought I had an idea about. KEI for the current year, if I'm not mistaken, INR150 crores US exports are on the cards or it is that's what I remember unless I have got the data wrong. And they were saying that they would have easily doubled it or more if they didn't take capacity constrains which they have actually…

APL Apollo Tubes Limited

APL Apollo Tubes Limited CC-Dec23.pdf · 2024-01-29

Very clearly the results of 3rd Quarter in terms of the volume growth I'm sure they've been below expectations of everybody including you. Good part to not e is that we still are confident that where the journey ahead is lying, but a more question I want to ask is in this journey of reaching 5 million tons and more how much of our destiny is dependent upon the fact that industry itself has to grow and rise? Secondly, how much of it is dependent upon our innovation success, our ability to read the market well , the ability to introduce the right products and create market ahead o f the competition and superior customer solution service so that is the second factor. And the third h ow much of the destiny will get is we are mo ving more and more into value added, how much of that will still be colored by the movement of the steel prices up and down. In short while this particular quarter clearly has been in terms of the sales outlook or below vote everybody thought or you might have thought to o, but if you have to focus on the long-term journey how much of our own destiny is under our control and how much of it will depend upon?

I raised the question earlier I am not sure whether that was heard or it got lost?