[Logan]

Edited Transcript of BRIH.NS earnings conference call or presentation 19-Aug-22 10:30am GMT

Conference Call Transcript

[rajeshmk]

Another feather in the cap of BCG

Attachments:

1. 

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[radhutheoptimist]

Can someone please through some light about 44 Ventures mentioned briefly in the con call. How is it related to BCG. My understanding so far is group of top guys of one of the main subsidiary of BCG formed a new company 44 Ventures. Has BCG invested in that? What will be the impact?

[Longplay55]

This is with respect to DSIJ Award…..though this award is addressed in the name of Mr. Singaraju, actually it’s awarded to “BCG” as a team; and whole heartedly I congratulate Mr. M. Suresh Reddy and his ‘entire-team’ for achieving this another feather in BCG’s cap. Personally, I appreciate the efforts being taken for all-round growth of the business !
However, I sincerely request Mr. Reddy to take an “oath” to improve on ‘Corporate Governance’. Trust me, there will be abundant money coming in for BCG stake holders, however, ‘legally’, ‘morally’, and ‘ethically’, correct money will bring in “prosperity”.

[vgsatwork]

44 Ventures is not linked to BCG based on the clarification provided by SKR. It is a moonlighting project by some of the original OMS founders who are currently working for BCG. BCG allowed this moonlighting effort because these folks could not be provided with ESOP’s(That is one question that could have been asked as to why ESOP trust has not yet purchased a single share eventhough it has been over a year since the company announced its intent to provide ESOP and created the welfare trust which would procure the share from the market). BCG is OK with this moonlighting effort provided that these people executives do not let that affect their work for BCG.

[whyShares]

This is my analysis of what is happening to BCG shares. Pure Guesswork!
Please add your thoughts

There are 201.8 crore shares in BCG, out of this, may be 50%, are in the hands of Promotors, FIIs and long-term investors. The other 50% is in the hands of speculators. Before the warrant and bonus issues, there were only about 50 crore shares and most of the shares were with promotors and long-term investors. Once the shares grew 4 times the original, too many shares are floating in the market with majority held by speculators and news driven investors. This is easy picking for broker gangs to manipulate the share price and make up to 10% margin when the share price is driven up 5% upper circuit and minus 5% lower circuit.

So right now the price of BCG is in the hands of Broker cartels and will remain so for some time. Foreign and Domestic funds and also long term investors are picking up shares regularly and the free floating broker shares are reducing daily. Only when this free floating shares come down will BCG show its true colours. May take up to 6 months

[radhutheoptimist]

The announcement of second bonus and the delay in distributing the bonus everything is pre-planned to help the operators cartels. Promotors are very much hand in glove with the operators. It is a shame that promotors having such a good business in hand indulge in these kind of cheap tactics just to make money… Distorted vision… Sad to see this from an IIT ian.

[whyShares]

Below is link to MornigStar data on Major institutions (FPI) investments in BCG.
FPI investments in BCG is steadily rising. Yesterday, 29 August 2022, they bought Nett about 9 Lakhs.
These are some of the world’s biggest investors, and the very fact they are increasing their holdings in BCG should encourage us.
With daily BCG volumes in BSE and NSE well over a crore, and the fact that it is not trading in UC or LC, I feel is an indication that the brokers are slowly losing their grip on BCG.
These are just my personal observations – they may not be accurate
https://www.morningstar.com/stocks/xnse/bcg/ownership

[Brightspot]

BIG NEWS Follows

August 31, 2022
BSE Limited National Stock Exchange of India Limited
P. J. Towers, 25th Floor, Exchange Plaza, Bandra Kurla Complex,
Dalal Street, Mumbai – 400001. Bandra (E), Mumbai – 400051.
Scrip Code: 532368 Symbol: BCG
Dear Madam / Sir,
Sub: Brightcom Group to set up a new division focusing on “Quantum Computing.”
Brightcom Group has decided to enter the “Quantum Computing “domain. As a first step, it would set
up a dedicated lab in San Francisco Bay Area, California, with a team of Quantum Technology experts
across the Globe. The objective is to advance Quantum computing technologies for AdTech and other
digital marketing requirements of the company.
Quantum Computing has an immediate use case in many of our domains: Search marketing, social
networks, constructing quick persona & profiles, Ad tracking, Web analytics, campaign simulations
and such. Quantum computing can reduce the time and resources required for the global ad-tech
industry by manifold. With technological advances in hardware and software, we believe Quantum
Computing is at the cusp of an explosion. Thus, it is an appropriate time for the investment to create
future growth engines for the group. It represents the next frontier for technological innovation for
Brightcom Group.
This new division, BRIGHTCOM QUANTUM, will be led by our President of Group Strategy, Mr Peshwa
Acharya, an IIT Engineering graduate.
Peshwa brings leadership experience, built over the last 29 years across FMCG, Retail, Telecom,
Technology, Ecommerce and Hospitality domains. He is an alumnus of IIM Calcutta & IIT Kharagpur
and has worked in various cities in India and across Asia and Africa. Peshwa’s corporate journey
includes working at P&G, Reckitt, Pepsi, Dabur, Reliance Retail, Globacom (Africa) and Sterling
Holidays (A Fairfax company). Later in 2015, he was handpicked as the first CEO of IIT Bombay
Research & Innovation Park (ASPIRE).
Quantum Computing: A brief background
The origins of quantum computing date back to 1981, the same year IBM released its first personal
computer.
Quantum computing is based on the fact that quantum-mechanical phenomena, such as chemical
reactions and the flow of electrons through semiconductors, are best simulated with machines based
on quantum mechanical rules. Also, compared to ordinary computers, quantum computers have the
potential to do calculations much, much faster. Standard computers store data and perform
computations using bits with only two states, either one or zero. On the other hand, a quantum
computer uses qubits, which can be one and zero, simultaneously until they are measured, at which
time their states become known. Therefore, the total number of states doubles with each added qubit.
One qubit is two possible states; two is four possible states, three is eight, and so forth, which leads
to an asymptotic increase in the states it can represent.
In the future, more robust, powerful versions of quantum computers, which exploit the properties of
matter at subatomic scales to significantly improve processing power, could revolutionize
computing, encrypt data, and investigate some of the most mysterious aspects of nature.
We believe thatthe super combination of Quantum computing&Artificial Intelligence would leapfrog
and disrupt existing methods, businesses and tech domains.
This announcement is made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
Request you to take the same on record and oblige.
Thanking you,
Yours faithfully,
for BRIGHTCOM GROUP LIMITED
Authorised Signatory

[radhutheoptimist]

I am taking everything with a pinch of salt. Last time it was media mint, Shankar Sharma entry and audio company acquisition. Price zoomed like a rocket. Then all those bonus issue, SHP issue, FA issue came. Then what happened to the share everyone knew. I am not trying to be a pessimist here. But let’s be cautious while dealing with BCG. Just stay grounded without building castles in the air.
Remember crores of preferential shares getting unlocked from today. Let’s be cautious. Unless they set their corporate governance right retail need to be extremely alert.

[whyShares]

Why BCG investing in Quantum Computing, a futuristic technology?

Recently BCG announced that they are starting a new division Brightcom Quantum Computing. Not much attention has been given to this news in BCG forums, some claiming that it is a gimmick to manipulate BCG share price. But in my opinion, this is big and will herald accelerating growth for BCG. The reasons are as follows:

BCG’s computers have to decide which ad to put on a person’s phone or computer between the time he clicks the search button and the the search results appearing. This is Programmatic advertising and is a system that automates the processes and transactions involved with purchasing and dynamically placing targeted advertising content on websites or apps. All this must happen in less than a second.

So the company that has the fastest computing power will always be a leader in the business. Brightcom believes Quantum Computing is on the verge of exploding due to technical improvements in hardware and software. As a result, this is an excellent moment to invest in future development engines for the company. It marks the next step in Brightcom Group’s technical innovation.

What Quantum Computing is explained very well by the leading manufacturer of Quantum Computing hardware.

https://www.ibm.com/in-en/topics/quantum-computing#:~:text=Quantum%20computing%20is%20a%20rapidly,available%20to%20thousands%20of%20developers.

[whyShares]

BCG’s acquisition of Mediamint deal cancelled instead there will be strategic alliance between both parties. May be for the good, but will be blown out of proportion by nay sayers. May hit LC tomorrow

https://www.bseindia.com/xml-data/corpfiling/AttachLive/082410a5-f8fd-45c0-ade7-4082f059bbb2.pdf

[Brightspot]

Dont worry about few Lcs, i personably think its good decision, also I strongly feel they are in process of another acquisition and they will be disclosing when it is complete in all respect (consummated*)

[Logan]

I think they should have thought about all these things before making the decision to acquire MediaMint. It’s not as if they didn’t know that MediaMint would work for BCG’s competitors.

The management has the responsibility of looking at the interests of more than 3 lakh shareholders. If it were any private company it wouldn’t have mattered but BCG is a public company and they should be more responsible in handling these things.

I don’t know what happens to the shares that were allotted to MediaMint people. They have lock in period until next March or April. I can’t understand why they do all the required procedures and then cancel the deal.

Like every other time let’s see what they say about this in the conference call. One good thing is at least they are hosting a conference call after the announcement else we’d have to wait till the next call to get any clarity.

Last time they didn’t answer our queries as I sent it too late but this time I’ll send it as early as I can. There aren’t too many queries so maybe I’ll send it by EOD tomorrow.

[Manish]

A deal is worthy n value comes over a period of time… Acquisitions are always very difficult n with the stock prices crashing it was never a deal … Which I had clearly stated much earlier in my writings….

Yes when any acquisition is announced market always is too much enthused n happy without knowing it’s long term effects on balance sheet n cash flow

1500 employees n just 67cr of profits is just too low margin sector … All said n done it would have given a big booster in back office but a better alternative is always possible …. Time will tell…

The main concern now is hope they haven’t let out much internal process to Media Mint mgmt as they are now more of a competition rather than complimentary business partner….

Worst part of Mgmt is they are taking too much of valuable time behind every decision n are not able to close issues ASAP… Their planning is lacking or their conviction is failing them at important junctures which they are not able to mend correctly….

Every failure is a very bad sign of mismanagement…. Or Corporate Governance or visionary aspect of the management…..This flaw cannot be continued and needs specific intervention or understanding the problem area n why this things happen at such important levels why does these failures continue how can this be stopped ….

Management needs sincere analysis n need to overcome this habit….

Everything said n done management is sincerely not up to the mark in corporate governance n needs to really work on it….

☝

https://t.me/+u48J23Di7Fg3NDE1

[Logan]

What I feel is that the problem is not with buying MediaMint or not but announcing the deal and then cancelling it. Like I said in my previous post, they have big responsibility now and whatever decision they take it should benefit all the stakeholders. Buying MediaMint may not be ideal for some reasons but why announce it, give them shares and then cancel it? Why make it more complicated and make people lose trust and point fingers at you? All these could’ve been avoided if they thought about these when they did the due diligence.

Usually they do 3 types of due diligence, one is financial, second is legal due diligence and the third will be operational (which some companies skip).

People will not forget these type of things. Just look at the perception that Lycos created. It won’t add much to the business but still anyone you ask they’ll always judge BCG by considering Lycos first. When it comes to business, I’ll be the last person to get excited about getting Lycos back but when it comes to getting credibility back, I want them to complete the Lycos deal first.

[Manish]

It’s not about shareholders anymore….

Many of the shareholders are now LTI but when you draw big plans of acquisitions n Mergers or New division we need new resources we need good people… We need knowledge n Hands on Experience to prove the mettle in the markets …. These all are also equal stakeholders who stake their reputation when they do a tie up with BCG on every deal which is of utmost important for both to grow….

This makes sense only when you can execute smaller n than bigger n than make tall claims….But seldom do we see something of repute getting over satisfactorily other than the last quarter results which were definitely excellent…

But than now with this hard breakup management needs to be really cautious n bring value to stocks so new people are less sceptical n bring more long term value on table

All these points n that management perception n vision needs to be discussed in concall

https://t.me/+u48J23Di7Fg3NDE1

😊😊

[Manish]

Quarterly result also come in a single line with no further detailing which group company has clocked what revenues which continent n which group is best

It’s like we are invested on mere #SARCASM no no truth as we see none nor on paper nor in reality…

☝☝

https://t.me/+u48J23Di7Fg3NDE1

[Abhishek]

My personal opinion – this break up looks favorable to BCG and it’s shareholders. In current global market where every company has revised their strategy and put a pause on mass hiring, in fact many start ups reduced their employee cost significantly in last few months.
In this situation, strengthening back office through acquisition and spending 566 cr for that doesn’t look a wise call. Rather, they should take sub-contracting route or strengthening back office through partnership is wiser decision. And BCG is doing exactly the same. Also the deal looked costly to me at the time they made, so good that they came out of that. BCG is doing so well in last few quarters, so it’s time to handle financials carefully. In current global slowdown, they can acquire high revenue/profit growth company cheaper. So, I am personally happy with this breakup news. This is purely my personal view. Request my other old boarders to share their thought.

[Author]

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