Beardsell Sep-17
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Questions and Answers

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?

  • 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?

  • 3D technology (correct)
  • Modular design
  • Traditional masonry
  • Prefab technology

    • Why are entry barriers considered high in the market related to Beardsell's business?

    <p>High capital investment requirements</p> Signup and view all the answers

    What is a strategic focus area for Beardsell concerning clients and projects?

    <p>Clients with assured payment terms and good margins</p> Signup and view all the answers

    What was the major factor causing delays in client orders during Q1 FY18?

    <p>Implementation of GST</p> Signup and view all the answers

    Which project indicates Beardsell Limited's entry into new geographical regions?

    <p>IIT Jammu project for partition walls</p> Signup and view all the answers

    What is the approved order pipeline amount for Quikbuild?

    <p>Rs. 100 million</p> Signup and view all the answers

    What program was launched to enhance the implementation of Quikbuild?

    <p>Authorized contractor/licensee program</p> Signup and view all the answers

    What significant action was taken regarding land and building at MIDC, Patalganga?

    <p>An MOU was signed for its sale</p> Signup and view all the answers

    What is the main benefit of Quikbuild's design in terms of project timelines?

    <p>It reduces timelines of projects compared to traditional RCC structures.</p> Signup and view all the answers

    Which application is suitable for Quikbuild's sandwich-panel based cold storage?

    <p>Marine, fruits, and pharmaceutical items</p> Signup and view all the answers

    What is a key feature of the affordable housing provided by Quikbuild?

    <p>Earthquake resistance.</p> Signup and view all the answers

    Which type of housing projects can benefit from Quikbuild's modular housing solutions?

    <p>Worker and student housing.</p> Signup and view all the answers

    What is a notable quality of the Quikbuild panel in construction projects?

    <p>It brings uniformly high quality to construction projects of any size.</p> Signup and view all the answers

    How does Quikbuild facilitate energy efficiency in their site offices?

    <p>By allowing for dismantling and re-use in different locations.</p> Signup and view all the answers

    What amount in enquiries is Quikbuild currently negotiating?

    <p>Rs 1,000mn.</p> Signup and view all the answers

    Which characteristic helps Quikbuild structures to be suitable for remote area construction?

    <p>Lightweight and modular design.</p> Signup and view all the answers

    When is the steel fire-rated/clean room door manufacturing expected to start?

    <p>Q3 FY18</p> Signup and view all the answers

    What is the expected yield on the commercial paper issuance?

    <p>7%</p> Signup and view all the answers

    What impact will GST have on the prefab industry according to the content?

    <p>It is expected to benefit established players.</p> Signup and view all the answers

    How much is the commercial paper proposed to be issued for?

    <p>Rs. 10 cr</p> Signup and view all the answers

    When is the Supa subsidiary unit's profitability expected to equal all other EPS units combined?

    <p>By Q1 FY19</p> Signup and view all the answers

    What technology is the PM reviewing for house construction?

    <p>3D construction technology</p> Signup and view all the answers

    What was a notable challenge faced in the first five months of the fiscal year?

    <p>Delay in order placement</p> Signup and view all the answers

    What is the expected increase in unit volumes for the Supa subsidiary by Q4 FY18?

    <p>50%</p> Signup and view all the answers

    What was the impact on revenue for Q1 FY18 compared to Q1 FY17?

    <p>Decreased by 14%</p> Signup and view all the answers

    What is one primary benefit mentioned for housing projects?

    <p>Reduced labor cost</p> Signup and view all the answers

    What is one significant positive impact of the GST mentioned by Bharat Anumolu?

    <p>Shift to the organised sector</p> Signup and view all the answers

    How much did the EBITDA decrease from Q1 FY17 to Q1 FY18?

    <p>By 89%</p> Signup and view all the answers

    What does the Quikbuild system reduce in construction?

    <p>Construction complexity</p> Signup and view all the answers

    What was the primary reason for the decline in topline performance in Q1 FY18?

    <p>Postponement of orders by customers</p> Signup and view all the answers

    Which factors are noted as increasing revenues in the Packaging & Molded Products Business?

    <p>Strong customer relationships and new clients</p> Signup and view all the answers

    What is a significant growth driver for the Packaging & Molded Products Business?

    <p>Increased EPS requirements by institutional customers</p> Signup and view all the answers

    What is the status of project cancellations as noted in the prefabricated buildings performance?

    <p>No project cancellations occurred</p> Signup and view all the answers

    What was the reported profit after tax (PAT) change from Q1 FY17 to Q1 FY18?

    <p>Decreased by 144%</p> Signup and view all the answers

    Which innovation is Beardsell known for in the packaging sector?

    <p>Cost-effective and shock-resistant EPS packaging</p> Signup and view all the answers

    Which business segment did Bharat Anumolu express optimism about?

    <p>Prefab and Packaging</p> Signup and view all the answers

    What strategy has helped keep profit margins under control?

    <p>Introducing new product variants</p> Signup and view all the answers

    What was the performance in terms of EBIT for Q1 FY18 compared to Q1 FY17 in the prefabricated business?

    <p>Decreased by 71%</p> Signup and view all the answers

    What type of packaging solution has Beardsell designed for electronics?

    <p>Anti-static packaging</p> Signup and view all the answers

    What is expected to happen over the next 2-3 years in the Packaging & Molded Products Business?

    <p>Expected increase in sales due to rising demand</p> Signup and view all the answers

    What was the status of the order pipeline for Quikbuild as of September?

    <p>Exceeding Rs. 100 million</p> Signup and view all the answers

    Which customer relationship has contributed significantly to revenue growth?

    <p>Long-standing relationships with major brands</p> Signup and view all the answers

    How did the overall market sentiment trend in September regarding order placement?

    <p>It saw a good uptick</p> Signup and view all the answers

    What challenge is identified due to the complexity of the Packaging & Molded Products Business?

    <p>High entry barriers for new market players</p> Signup and view all the answers

    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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    Related Documents

    Q1 FY18 Beardsell Limited Earnings Presentation PDF

    Description

    Test your knowledge on Beardsell's success and strategic initiatives in business operations. This quiz covers aspects like market barriers, client focus, and the innovative Quikbuild model. Dive into the details of their projects and technological advancements as you explore the growth of Beardsell Limited.

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