This is Nitin Shakdher from the Green Capital Single Family Office. My question is more from an investor's point of view rather than an analyst type of a question is that for this annual year and in terms of approximate margin guidance for the 3 businesses, which is, let's say, advanced battery materials, the turnaround of the acquired assets on Birla Tyres, and obviously the main core business, which is the speciality carbon black. Are you able to give any sort of an indication margin guidance growth rate for the year? I do understand that geopolitically your raw material costs will be up and down, but just as an indication. Thank you.
Questions across 7 calls
Nitin Shakdher
Green Capital Single Family Office
Himadri Speciality Chemical Limited
Indian Energy Exchange Limited
This is Nitin Shakdher from Green Capital Single Family Office. My question is more as an investor rather than an analyst. Let's assume the worst -case scenario that the market coupling regulation goes against the company and you lose the legal case. Now o bviously, as a risk management strategy, you would have decided to have strategies in place in case that were to happen. But is the understanding correct that the traders will have no functional reason to prefer IEX and maybe the smaller new exchanges like HPX and PXIL will be able to attract slightly more volumes and erode market share and might be some margin pressure. How do you anticipate in case the regulations were to go towards the market decoupling ? Just clarity from the management once and for all, so at least we can anticipate both sides of the equation ? Thank you.
Okay. So any potential offset for margin that you have done that it might have a minor impact on margins, (they) might go down because you've always been dealing with this situation over the last one one-and-a half years. So do you expect… a margin… because the business valuation is already reflecting that the liquidity moat is not there at this point in time in terms of the dominance? So do you think that there might be slight-changes in margin in case the worst-case scenario was to come around? Or it's just business as usual and you think that we have to accept it and carry on (with) what it is?
LT Foods Limited
Hi. Good afternoon. This is Nitin Shakdher from the Green Capital Single Family Office. My question to the management is more from an investor rather than an analyst. What is the Company's thought process in terms of a larger brand strategy to become a larger food and beverage company maybe in the next few years in terms of brand expansions, let's say like yogurt -based drinks, lassi, buttermilk, lemonade, sh arbats, which go very well with rice. On the same lines, the way you've done the curry-rice meals and European processed foods venture. Is there a thought process on the strategy to become a larger company rather than just a rice brand?
My follow -up question is that, just if you could talk us through the European Processed Foods investment with Global Green, how's that shaping up? I know it's too initial right now, but what's generally the ramp -up and how is it going t o be processed and what's the initial feedback?
Hi. Good afternoon. This is Nitin Shakdher from the Green Capital Single Family Office. My question to the management is more from an investor rather than an analyst. What is the Company's thought process in terms of a larger brand strategy to become a larger food and beverage company maybe in the next few years in terms of brand expansions, let's say like yogurt -based drinks, lassi, buttermilk, lemonade, sh arbats, which go very well with rice. On the same lines, the way you've done the curry-rice meals and European processed foods venture. Is there a thought process on the strategy to become a larger company rather than just a rice brand?
My follow -up question is that, just if you could talk us through the European Processed Foods investment with Global Green, how's that shaping up? I know it's too initial right now, but what's generally the ramp -up and how is it going t o be processed and what's the initial feedback?
Amara Raja Energy & Mobility Limited
This is Nitin Shakdher from the Green Capital Single Family Office. So my question is more from as an investor in the company rather than an analyst. So what are your conversations happening with your large automotive clients in terms of Tata, Mahindra, Suzuki, Ashok Leyland, Hyundai? How are they seeing production pan out demand for 4-wheelers, 2-wheelers, commercials? And how will that get impacted in terms of order book versus vehicle production for the company. Just wanted to get a management perspective on the conversations happeni ng with OEMs for this year?
Okay. That's sort of helpful. And a follow -up to that. So I do understand that there's a bit of an export OEM structure which the company might interface with in terms of tariffs and specifically for export demand from the automobile manufacturers and then obviously putting demand to yourself. So what is the conversations on tariffs and export demand from the company? I mean any conversations on that?
Pidilite Industries Limited
Hi, good afternoon to the management for another steady set of good results. My question is more forward looking so please answer it in the present to the best possible that you can. Now we have seen many large industrial players entering cement, wires, cables and paints specifically. And that's hit the margins of the larger dominant companies. Now whether it's Asian Paints or Havells who already had a lot of market share, now, is there any future risk mitigation plan that the company is working on, which sort of tells them what we should do in case a larger industrial house were to enter the adhesives. Just wanted to get a management sense of how we are working in the future because it might happen in the future. We don't know when, but it might. So, just wanted to get a sense of that. This is more as an investor rather than an analyst.
Okay, thanks. Sir, my follow-up question on that is it's extremely clear that you have already anticipated the risk and probably the management is working on a strategy or a vision that if a risk like that were to happen you will be able to counter it. My follow up question is, is there any feedback on the ground from let's say the larger distributors, the B2B business or the B2C business that what can the company do in terms of innovations that it's probably not done before? I mean it is very tough to change products overnight but strategy at the management can look into working with innovative ways of trying to control a larger market share. So, if that risk were to happen you probably lose out a lot lesser.
Havells India Limited
Good evening. This is Nitin Shakdher from the Green Capital Single Family Office. I just want to understand from the management, is there an opportunity to increase the revenue on the export market of cables and wires in specific when you're facing domestic competition f rom other players and when you move to a strategy where you increase your export revenue, maybe to countries like U.S. or China or emerging markets, how does that pan out considering some margins might be at, I would say, a l ittle bit of a stretch in that sense on incumbent players coming?
Yes. So in relation to that, sir, I just wanted to check with you what is the on -ground feedback from your larger wholesale distributors or wholesalers? How do they look at competition? Is it margins, is it brand loyalty, is it that the company needs to increase distribution margins to retain a lot of the distribution force? How does it really pan out? If you can just give us a bit of a color on that?