Podcast
Questions and Answers
What is one primary reason for Beardsell's success in business operations?
What is one primary reason for Beardsell's success in business operations?
- Use of traditional construction methods
- Focus on international markets
- Commitment to timely delivery (correct)
- Innovative marketing strategies
What significant model has Beardsell launched to enhance its business?
What significant model has Beardsell launched to enhance its business?
- Vertical integration model
- Franchisee/authorized licensee model for Quikbuild (correct)
- Online delivery service model
- Direct sales approach
Which technology emphasis is being encouraged by the PM for constructing affordable homes?
Which technology emphasis is being encouraged by the PM for constructing affordable homes?
- 3D technology (correct)
- Modular design
- Traditional masonry
- Prefab technology
Why are entry barriers considered high in the market related to Beardsell's business?
Why are entry barriers considered high in the market related to Beardsell's business?
What is a strategic focus area for Beardsell concerning clients and projects?
What is a strategic focus area for Beardsell concerning clients and projects?
What was the major factor causing delays in client orders during Q1 FY18?
What was the major factor causing delays in client orders during Q1 FY18?
Which project indicates Beardsell Limited's entry into new geographical regions?
Which project indicates Beardsell Limited's entry into new geographical regions?
What is the approved order pipeline amount for Quikbuild?
What is the approved order pipeline amount for Quikbuild?
What program was launched to enhance the implementation of Quikbuild?
What program was launched to enhance the implementation of Quikbuild?
What significant action was taken regarding land and building at MIDC, Patalganga?
What significant action was taken regarding land and building at MIDC, Patalganga?
What is the main benefit of Quikbuild's design in terms of project timelines?
What is the main benefit of Quikbuild's design in terms of project timelines?
Which application is suitable for Quikbuild's sandwich-panel based cold storage?
Which application is suitable for Quikbuild's sandwich-panel based cold storage?
What is a key feature of the affordable housing provided by Quikbuild?
What is a key feature of the affordable housing provided by Quikbuild?
Which type of housing projects can benefit from Quikbuild's modular housing solutions?
Which type of housing projects can benefit from Quikbuild's modular housing solutions?
What is a notable quality of the Quikbuild panel in construction projects?
What is a notable quality of the Quikbuild panel in construction projects?
How does Quikbuild facilitate energy efficiency in their site offices?
How does Quikbuild facilitate energy efficiency in their site offices?
What amount in enquiries is Quikbuild currently negotiating?
What amount in enquiries is Quikbuild currently negotiating?
Which characteristic helps Quikbuild structures to be suitable for remote area construction?
Which characteristic helps Quikbuild structures to be suitable for remote area construction?
When is the steel fire-rated/clean room door manufacturing expected to start?
When is the steel fire-rated/clean room door manufacturing expected to start?
What is the expected yield on the commercial paper issuance?
What is the expected yield on the commercial paper issuance?
What impact will GST have on the prefab industry according to the content?
What impact will GST have on the prefab industry according to the content?
How much is the commercial paper proposed to be issued for?
How much is the commercial paper proposed to be issued for?
When is the Supa subsidiary unit's profitability expected to equal all other EPS units combined?
When is the Supa subsidiary unit's profitability expected to equal all other EPS units combined?
What technology is the PM reviewing for house construction?
What technology is the PM reviewing for house construction?
What was a notable challenge faced in the first five months of the fiscal year?
What was a notable challenge faced in the first five months of the fiscal year?
What is the expected increase in unit volumes for the Supa subsidiary by Q4 FY18?
What is the expected increase in unit volumes for the Supa subsidiary by Q4 FY18?
What was the impact on revenue for Q1 FY18 compared to Q1 FY17?
What was the impact on revenue for Q1 FY18 compared to Q1 FY17?
What is one primary benefit mentioned for housing projects?
What is one primary benefit mentioned for housing projects?
What is one significant positive impact of the GST mentioned by Bharat Anumolu?
What is one significant positive impact of the GST mentioned by Bharat Anumolu?
How much did the EBITDA decrease from Q1 FY17 to Q1 FY18?
How much did the EBITDA decrease from Q1 FY17 to Q1 FY18?
What does the Quikbuild system reduce in construction?
What does the Quikbuild system reduce in construction?
What was the primary reason for the decline in topline performance in Q1 FY18?
What was the primary reason for the decline in topline performance in Q1 FY18?
Which factors are noted as increasing revenues in the Packaging & Molded Products Business?
Which factors are noted as increasing revenues in the Packaging & Molded Products Business?
What is a significant growth driver for the Packaging & Molded Products Business?
What is a significant growth driver for the Packaging & Molded Products Business?
What is the status of project cancellations as noted in the prefabricated buildings performance?
What is the status of project cancellations as noted in the prefabricated buildings performance?
What was the reported profit after tax (PAT) change from Q1 FY17 to Q1 FY18?
What was the reported profit after tax (PAT) change from Q1 FY17 to Q1 FY18?
Which innovation is Beardsell known for in the packaging sector?
Which innovation is Beardsell known for in the packaging sector?
Which business segment did Bharat Anumolu express optimism about?
Which business segment did Bharat Anumolu express optimism about?
What strategy has helped keep profit margins under control?
What strategy has helped keep profit margins under control?
What was the performance in terms of EBIT for Q1 FY18 compared to Q1 FY17 in the prefabricated business?
What was the performance in terms of EBIT for Q1 FY18 compared to Q1 FY17 in the prefabricated business?
What type of packaging solution has Beardsell designed for electronics?
What type of packaging solution has Beardsell designed for electronics?
What is expected to happen over the next 2-3 years in the Packaging & Molded Products Business?
What is expected to happen over the next 2-3 years in the Packaging & Molded Products Business?
What was the status of the order pipeline for Quikbuild as of September?
What was the status of the order pipeline for Quikbuild as of September?
Which customer relationship has contributed significantly to revenue growth?
Which customer relationship has contributed significantly to revenue growth?
How did the overall market sentiment trend in September regarding order placement?
How did the overall market sentiment trend in September regarding order placement?
What challenge is identified due to the complexity of the Packaging & Molded Products Business?
What challenge is identified due to the complexity of the Packaging & Molded Products Business?
Flashcards
Quikbuild
Quikbuild
A system that allows for the quick and efficient construction of buildings using prefabricated components.
Pre-fab
Pre-fab
A building system that uses prefabricated components, which are manufactured off-site and then assembled on-site.
Authorized Contractor/Licensee Program
Authorized Contractor/Licensee Program
A sales strategy where a company grants rights to build, sell, and service their products to independent businesses.
J&K Project - IIT Jammu
J&K Project - IIT Jammu
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Entry into New Geographies
Entry into New Geographies
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A1+(SO) Rating
A1+(SO) Rating
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Commercial Paper (CP)
Commercial Paper (CP)
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Issuing Commercial Paper to Reduce Interest Costs
Issuing Commercial Paper to Reduce Interest Costs
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Goods and Services Tax (GST)
Goods and Services Tax (GST)
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Prefabrication in Construction
Prefabrication in Construction
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Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana
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3D Construction Technology
3D Construction Technology
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Progressive Outlook
Progressive Outlook
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Franchisee/Authorized Licensee Model
Franchisee/Authorized Licensee Model
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Timely Delivery
Timely Delivery
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Pre-fabricated Structures
Pre-fabricated Structures
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Assured Payment Terms & Good Margins
Assured Payment Terms & Good Margins
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3D Technology for Construction
3D Technology for Construction
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Prefabricated Buildings
Prefabricated Buildings
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Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
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Formalization
Formalization
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Capex Deferment
Capex Deferment
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Economic Downturn
Economic Downturn
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Revenue from Operations
Revenue from Operations
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Networth
Networth
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Profit and Loss (P&L) Statement
Profit and Loss (P&L) Statement
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Quikbuild's Focus
Quikbuild's Focus
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Reusability of Quikbuild Panels
Reusability of Quikbuild Panels
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Earthquake Resistance in Quikbuild Housing
Earthquake Resistance in Quikbuild Housing
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Lightweight Materials in Quikbuild Construction
Lightweight Materials in Quikbuild Construction
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Quikbuild's Geographic Focus
Quikbuild's Geographic Focus
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Sandwich-Panel Design in Quikbuild
Sandwich-Panel Design in Quikbuild
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Applications of Quikbuild's Cold Storage
Applications of Quikbuild's Cold Storage
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Versatility of Quikbuild Modular Housing
Versatility of Quikbuild Modular Housing
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Quikbuild System
Quikbuild System
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Structural Integrity
Structural Integrity
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Revenue
Revenue
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EBIT (Earnings Before Interest and Taxes)
EBIT (Earnings Before Interest and Taxes)
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Commercial Paper
Commercial Paper
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Study Notes
Company Information
- Company name: Beardsell Limited
- Registered office: 47, Greams Road, Chennai - 600 006, India
- Telephone numbers: 2829 32 96, 2829 09 00
- GSTIN: 33AAACB1429P2ZP
- CIN No.: L65991TN1936PLC001428
- Email: [email protected]
- Website: www.beardsell.co.in
- Branches: Ahmedabad, Bangalore, Chennai, Coimbatore, Hyderabad, Kochi, Mumbai, New Delhi, Visakhapatnam
- Listing manager (NSE): National Stock Exchange of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400 051
- Listing manager (BSE): BSE Limited, PJ Towers, Dalal Street, Mumbai-400 001
- Scrip codes: BEARDSELL (NSE), 539447 (BSE)
Q1 FY18 Earnings Presentation
- Date: September 2017
- Key topics covered: Q1 FY18 performance, business overview, growth drivers, financial overview, pre-fab business highlights, environmental overview, managing directors' comments, financial overview, p&l snapshot (q1 fy18, q1 fy17), balance sheet snapshot (as on 30th June 2017), business overview -pre-fabricated buildings, pre-fabricated business, packaging & molded products business, driving organizational growth, financials - income statement, financials - balance sheet performance, contact details
Business Highlights (Q1 FY18)
- Government orders continued in Q1, but implementation started later
- Delays in orders due to GST implementation
- Pre-fab business gaining traction
- Quikbuild order pipeline exceeds Rs. 100 million
- Expansion and deepening relationships with consumer durable players (Godrej, Haier)
- Subsidiary unit in Supa, Maharashtra expected to increase profitability
- Company entered J&K, Uttarakhand, and Madhya Pradesh, starting a factory in Delhi
- MOU signed for sale of land and building at MIDC, Patalganga for Rs 80 million
- CRISIL rating for CP issuance: A1+(SO)
- Proposals to issue commercial paper for Rs. 10 cr, with an expected yield of ~7% return, replacing cash credit account
Environment Overview
- GST is expected to be positive for the prefabricated industry, enabling better market access
- Affordable housing is exempt from GST, making it less expensive
- ITC now available for prefabricated products, leading to tax reduction
- Speeding up Pradhan Mantri Awas Yojana construction, with emphasis on 3D technology in 25 major cities
- Large government and private sector inquiries are in progress
Managing Directors' Comments
- Challenges in the first 5 months due to order placement delays impacted by the implementation of GST.
- Positive outlook for GST's long-term economic impact
- Order placement improved in September, with optimism for the momentum continuing into the second half of the year
- Organized sector growth is a positive factor
Financial Performance (Q1 FY18)
- Revenue: Rs 381 million (Q1 FY18), down 14% from Rs 443 million (Q1 FY17)
- EBITDA: Rs 5 million (Q1 FY18), down 89% from Rs 46 million (Q1 FY17)
- PAT: Rs (7) million (Q1 FY18),down 144% from Rs 16 million (Q1 FY17)
- Topline impact due to deferment of capex due to demonetization and GST implementation
- Reconciliations between results under IGAAP and Ind AS: summarized
- Balance sheet snapshot (as on June 30, 2017):
- Networth: Rs 406 million
- Fixed Assets: Rs 423 million
- Cash & Investments: Rs 69 million
- Net Debt: Rs 86 million
Packaging & Molded Products Business (Overview)
- Revenue: Rs 162 million (Q1 FY17), Rs 157 million (Q1 FY18)
- EBIT: Rs 28 million (Q1 FY17), Rs 7 million (Q1 FY18)
- Strong relationships with leading consumer durable players (e.g., Haier, Godrej)
- Increased revenue consistent with existing large accounts
- Started flexible foam business (seat cushions, other custom flexible PU products)
Growth Drivers
- Prefab business, 20 years of operations: time-bound delivery, high entry barriers, consistent margins
- Quikbuild business expansion: franchisee/licensee model; government acceptance
- Isobuild: gaining acceptance in government agencies, creating follow-on orders
- Emphasis on 3D construction technology for affordable housing projects in smart cities
- Focus on clients and projects with assured payment, good margins, and southern states presence
- Organizational growth drivers: turnkey projects, raw material immunity, processing costs, underutilized capacity, rising government requirements, and Isobuild
Pre-fabricated Product Offerings
- Cold storages: sandwich-panel construction
- Affordable housing: Value-oriented, earthquake resistant
- Modular housing: Student, worker, refugee, military personnel housing
- Site Offices: re-usable, energy efficient
Completed Projects - I & II
- Images of completed pre-fabricated projects are presented
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