[Sumeshnair2005]

Bonus shares approved now I feel the shp will be released today with the mystery of missing promoter shares unravelling .. I feel second bonus was given for this only .. he took cumbonus shares from preferential allotted via LLP and gave thm his bonus stripped shares after record date… so he increased his holdings without spending any money or selling shares… the new shp may show promoters shares increased to 25 to 30% I think …its perfectly legal way though many would object morality.. bu ultimately gud for our company cheers

[kmr003]

Perticularly in twitter, so called analysts, every tom n dick comments on company based on price,
They purely play for 20% returns.
Im sure they will never be part of multibagger stocks not only BCG, any other companies..

Personal opinion, BCG Q4 results are fentastic,very good dividend .30 Paisa, I understand CG they should improve, this is there from very long time,
hope they will work n resolve this year n move on 😀

[JackSparrow13]

Brightcom Mar’22 Results

1. Standalone Results – Sales (Rs. 94 Cr Mar’22 vs Rs. 84 Cr Mar’21), Net Profit (Rs. 0.14 Cr Mar’22 vs Rs. 8 Cr Mar’21)
2. Consolidated Results – Sales (Rs. 1240 Cr Mar’22 vs Rs. 699 Cr Mar’21), Net Profit (Rs. 223 Cr Mar’22 vs Rs. 140 Cr Mar’21)
Full Year Ended – Sales (Rs. 5020 Cr FY’22 vs Rs. 2856 Cr FY’21), Net Profit (Rs. 912 Crs Mar’22 vs Rs. 483 Cr FY’21)
3. Vuchi Media Private Limited (Mediamint) Acquisition is yet to be completed, hence company did not consider its financials in Mar’22 Consolidated Results.
4.Brightcom has recommended a final dividend of Rs. 0.30 per equity share, subject to approval in their ensuing Annual General Meeting.
5. Management commentary on Financial Results
“The company reported a strong year, with Consolidated revenues of Rs. 5019
crores and PAT of Rs. 912.2 crores for FY22. Fourth quarter revenues were Rs.
1240 crores and PAT of Rs. 223 crores.
Consolidated revenues rising 75.8% YOY and PAT rising 88.86% YOY. Notably,
EBITDA also rose to 69.78% YOY.
Company’s Return on Equity (ROE), on an annualized basis has reached 17.23 %
approximately. We are focussed on improving this key ratio substantially.
We achieved an operating Free Cashflow of Rs 287 crores for the year FY22. We
are looking to meet the 500 crores FCF mark by the end of the June quarter.
The Board has decided to payout a significant amount of Rs.60.54 crores as
dividend, to reward its shareholders. This represents a dividend payout ratio of
around 7%, which compares extremely favorably with global tech companies,
such as Nvidia ( dividend payout ratio of around 4.5%) to Apple, which has a
dividend payout ratio of around 14%.*
• Improving Free Cash generation is a critical financial target for management.”
6.Auditing standard is same as before. Consolidating results of overseas subsidiaries. No Auditor Certificate of Stand Alone Foreign Entity included in Results.
7.As per Auditor
Standalone Result Audit (Emphasis of Matter Paragraph: 3)
SEBI ordered Forensic Audit vide Ref No – SEBI/HO/ CFID/ CFID_4/P/OW/
2021 /24343/1 dated 16/09/2021 as per the provisions and Regulation 5 of SEBI
(PFUTP) Regulations 2003 read with section 11C of SEBI Act, 1992 and Deloitte
Touche Tohmatsu India LLP has been appointed as forensic auditor w.rx.t the
financial statements for the Financial years FY 2014-15 to FY 2019-20. The said
Forensic Audit is under progress and the final outcome of the investigation is yet
to come by the time of our Certification.
Consolidated Result Audit (Emphasis of Matter Paragraph: 4)
The subsidiary company M/s. Ybrant Media Acquisition Inc has acquired M/s.
Lycos Inc.,
M/s. Ybrant Media Acquisition Inc has dispute in respect of consideration of USD
16 Million for acquisition of M/s. Lycos Inc, to Daum Global Holdings
Corporation and the district court of New York has given judgment to handover
back 56 % equity in M/s. Lycos Inc to M/s. Daum Global Holdings Corporation
and the concern matter is pending as on date.
8. Additional Matters from Management Discussion
a. The main drivers of revenue this year were:
• Overall growth of the digital marketing spend across the globe
• Agencies saw 54% year-over-year growth from 2020 to 2021. Moreover, agencies
project a whopping 68% average growth in 2022 as well.
• Improved eCPMs continue to contribute to increasing the budgets.
• Client acquisition and retention were better in 2021 than in 2020.
b. We signed a letter of Intent to acquire Digital Audio company to improve our Audio advertising footprint in the US. The Due Diligence of the same on finances and Legal side just got completed. Legal agreement work is in progress.
Outlook
We predict strong growth for the foreseeable future.
• The top two services for digital marketing companies are:
• 34% Social media marketing
• 29% Full service digital
• We feel confident, we have positioned ourselves well in the market and established our value to clients
Top challenges facing agencies in 2022 all focus on driving growth.
• 82% client acquisition
• 81% hiring
• 80% client retention

[JackSparrow13]

Brightcom Mar’22 Results
My Free Opinion
What I liked –
1. Dividend Announcement – As I had posted in May 20, 2022, views of management on dividend issue, happy to see dividend improve. One of the the “old but gold” investing hearsay is a strong dividend payout, often makes helps creating a strong base for stock price.
2. Liked comparison with Apple in dividend announcement. A small hope is rising that as company grows, dividend payout would increase.
3.The management achieved their FCF commitment of Rs. 250 CR for FY’22, and has reiterated its goal of Rs. 500 cr FCF by June quarter.
4.Sounding almost opposite to above, I really liked company’s extremely vague future outlook (meaning devoid of hard financial numbers). We now live in a turbulent inflationary world. Europe is badly hit due to Ukraine war, messing up prices of everything. The last thing a logical company would want is an ambitious sounding target.
5.Letter of Intent to buy a Digital Audio Company. I think this needs a bit of celebration too.

What I did not like/understand
1. Why Mediamint’s result could not be consolidated?
2.If dividend could not be now and approval taken later at AGM. Brightcom has had delayed AGMs, and this “delayed” dividend payment might again create a controversy.
3. Why FA is taking so long (of course Brightcom not to blame for this).
4.Auditing Issue, and Simplification of Subsidiaries – Less said, the better

I think this year, the management should keep their heads down, focus hard on business, not get involved in avoidable issues (like delayed/botched up bonus share listings), and try to improve their shareholding.

Looking forward to a stormy concall over promoter share holding fiasco 😉 If they dont explain it clearly in introductory remarks, will be happy to see them get a bit of plain talk… Cheers.

[Logan]

Yearly results are very good as it matched the guidance given by management but quarterly results missed the guidance (net profit not total comprehensive income).

I guess like other ad-tech companies, BCG too faced issues with clients having to deal with supply chain issues, high inflation and the war in Ukraine (war started in Feb so applies to Q4). These things will lead to a cut in ad spend which affects ad-tech companies.

Rs 0.30 dividend was a big surprise for me as I was expecting dividend to be max 0.10 or 0.15.

Good to see progress in audio ad acquisition and singing more publishers, ad agencies and advertisers.

I’ll share my queries for the conference call by EOD.

[whyShares]

Reposting with more accurate figures regarding the outstanding paid up number of shares. Please comment regarding the accuracy of these calculations. Thanks

Even though the results look extremely good, it should be noted that in 2020-21 there were only about 50.76 crore shares of Rs.2 face value. Now in 2021-22 there are about 201.79 crores shares of Rs.2- outstanding.

This means that the EPS (Earnings per Share) for year ending March 2022 is only 4.52 compared to 9.51 the year before.

The market value of a share is measured by its PE ratio (Market price/EPS). The pre-bonus share price high was 205 or so, which means a PE ratio of 205/9.51 = 21.5

After bonus now the price is about 65 which means a PE ratio of 65/4.52 = 14.38 say 15.

A PE ratio of 20 is considered a fair value for a company with steady income, thus a fair market price for BCG now is 4.52×20 = 90.40

It should be noted that Companies like infosys, TCS and other companies in the IT sector has an average PE ratio of 30, in which case, BCG should be at 135.60

BCG is in Ad Tech sector and the best comparison for the Ad-tech industry is the company ‘Affle’ whose PE ratio is 65. At this PE ratio BCG price will be 293.80

BCG is improving and every year its EPS and its PE ratio should increase. So look forward to a bright future for BCG.

[Brightspot]

hello sir, if someone attend conference call tomorrow , please ask below question

1. if sebi investigation was only related of impairment of asset only (as told by skr in the clarification), why they are taking more than 6 months in investigation, Deloitte Touche Tohmatsu is so dumb to understand it?
2. until now they have not appointed CS and CFO, and audit is in progress, who is coordinating it auditor now?
I dont think share price wont appreciate if those things are clear to investors

[Brightspot]

Share price end in LC even after blockbuster result and/ or even after announcement of 30p dividend , SKR need to understand to become global company of repute transparency and good corporate governance very important , otherwise we will be dreaming about brightcom become largecap for ever

[Logan]

I guess people are selling bonus shares which they recieved yesterday. I don’t understand the concept of selling bonus shares as I don’t know what you’ll get from doing that but that’s what people do when companies issue bonus. Last time also we saw similar thing happen. The stock was under pressure for some time after the bonus shares were credited and then the news of Mr.Sharma investing in BCG took that pressure off.

This time the total number of shareholders has also increased and the ratio is also more (2 for every 3 but last time 1 for every 4) so the selling pressure is more (as people may sell those 2 extra shares). FA, promoter SHP confusion and pressure on tech companies’ shares are also playing a role.

(Tanla, Affle also had great quarters but even their shares were under pressure after their results)

[odysee]

The only two other (positive) differences are the decent free cash flows generated and the domestic and foreign institutions continuing to invest in the company.
I’m also never clear on the disposal of equity shares received by way of bonus shares by capitalisation of free reserves of a company.
Whether I hold 3 shares at Rs 100 each or hold 5 shares after a 2:3 bonus at Rs 60 per share, the total value of the holding remains the same. Only the paid up capital increases to the extent of the bonus shares issued.
And hence the pressure on the management to retain or increase the eps on the enhanced equity.

[JackSparrow13]

Hopefully, the management has had enough fun with Bonus shares, for some time.

[Brightspot]

guys sorry for dragging same topic, in the conference main topic would be on FA and appointment of cfo asap..as per my knowledge and experience sebi will put on hold FA process for ever if they dont get the required documents and response from CFO, i guess nothing is happening on that front without CFO (forever FA will be in progress)..what was the urgency to send cfo before FA? you can see in the case of suspended companies sebi is not revoking as they have not received required documents even after 7 years..

[chris]

Good evening,
Was an interesting con call, SKR did confirm the continuing growth story and audio acquisition.

But, again the main cause for concern was the SHP. No explanation given for the missing promoter quota, except for his assurance that he himself hadn’t sold a single share in the last 12 months.
He also did mention that Mr. Vijay Kancharla had sold “a couple of thousand” or “10,000”(I didn’t catch that), and when asked regarding the intimation of the same, he said there was a discussion with the regulator regarding the same.

So those I felt were the key points in today’s concall. Opinions and guidance from fellow members would be greatly appreciated.

[chris]

Was listening to the concall regarding the failure to disclose the sale of shares by vijay kancharla “5000-10000 shares (a very minuscule amount)”. SKR’s answer to the investor “ yes you do have a point we are in talks with the regulator”.

The surprises with this share continue, there has never been a silent year, but the amount of informal education this share has given me is crazy. So really wondering what happened to these shares, very inquisitive more on the academic lines.

[chris]

@jacksparrow13 bonus shares done, we shall talk about SHP for the next quarter or two

[odysee]

Not sure as to why the SHP should be be of any major concern. Mr Reddy clarified that he has not sold a single share personally in the last 12 months. The mystery surrounding the personal holdings/control through LLPs shall be resolved, I suspect, when the next SHP is released.
I would, however, like to see a balance sheet with far greater disclosures than hitherto. That issue never came up.

[chris]

@odysee if that is the market perception of SHP, I’ll be more than happy.

Unfortunately, convention media and social media painting a different picture, but they have always been doing that even when the share was trading at peanuts.

[Brightspot]

@odysee i am very disappointed by the way con call was conducted today,none of issues were resolved.. all pending issues are still pending. he told again daum closure would take another 2 quarters . it appeared to be like those who will always post positive tweet are allowed to ask questions, however that was only my view i might be wrong also. In the acquisition there is buy and sell, SKR acquired shares from LLPs , how that transaction took place is a mystery, can someone throw light on it?
or those llps are originally owned by SKR himself?

[JackSparrow13]

The problem with Brightcom share(not company) is very clear and has been clear since decades – low promoter shareholding. Till that gets sorted, we will have huge multi year variations in share price. My personal sense is that driven by negative environment in investing circle, we will may go back to 10 or below. This is something we need to accept, and not lose sleep over (apologies for being cynical).

What is consistently getting missed out is that business is getting stronger (fog created that subsidiaries abroad India are smoke and thin air :P). Frankly I am liking this fog. Am actually hoping more negative news/hit jobs come out. Because if the business is getting stronger, and since the company has a dividend policy, it makes sense digging in and enjoying growing dividends.(its a part of small cap investing)

Shareholding issue also seems blown out, if I take a decadal perspective (apologies). Its not that promoter shareholding has gone down to 1-2%, or drastically improved to 50%. There is hardly any special advantage that comes with promoter shareholding being 22% or 18%.

I am not really a good analyst, nor do i have any great insight on business or promoter. But I am seeing positive multi year trends in financials (repaying of debts, increase in sales, steady margins, high but steady Debtor days, slowly improving dividend payout). All that is missing is strong parentage (promoter shares)

All I am saying is if I am a long term investor, I should focus on long term. Do I see business improving ? Do I see corporate governance improving (I see no reason why, the amount of dirt directed at Twitter at SKR and Brightcom is unbelievable, and it takes a really thick skinned animal to ignore the dirt all the time)

[Abhishek]

What is more important promotor’s holding or Business? Ans: Business
Is promotor’s holding deciding factor for growth and value stocks? Ans: Not at all
why long term investors should worry when Financials improved, Business is growing and promotors taking good decision to acquire a company to build strong backend team to support business growth and sustain? There is no reason to worry. Yes, some corporate governance issues are there, and hoping management will soon address/fix those.
If promotor’s holding is so important then why Infosys (13.11% promotor’s holding) grew faster than Wipro (73% promotor’s holding) and given better return to investors.
I am personally very happy with business growth and rewarding shareholders with bonus shares, and I believe in long run it will help in multiplying investor’s wealth as true multi-bagger. again it’s my personal view only.

[Author]

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