Tagged: Clarification of Transaction.
July 2, 2020 at 2:35 pm #7483July 2, 2020 at 2:54 pm #7485Investor_2022Registered Boarder
@headstead, very warm welcome!
Please keep inspiring us with your view on the latest developments being made in the company.
Hope to meet you in today’s conference call too.1+July 2, 2020 at 2:56 pm #7486buffetRegistered Boarder
Welcome, @headstead! Thank you for joining this forum. Your presence will bring lots of positivity.1+July 2, 2020 at 3:08 pm #7487RaveendraRegistered Boarder
Conference call details please ?0July 2, 2020 at 3:40 pm #7488smitsatRegistered Boarder
Welcome Headstead.1+July 2, 2020 at 4:14 pm #7492sagraaRegistered Boarder
This forum would give us an opportunity to interact with you.
Moneycontrol is not the same what it used to be 6 year back.
Welcome again..2+July 2, 2020 at 8:26 pm #7504VALUEBUYER001Registered Boarder
Welcome Headstead Sir Ji. We will be happy to know your views on the concluded conference call today.Thanks for coming to forum sir1+July 2, 2020 at 8:58 pm #7505
@buffet – nice update.
Thanks Saul and others for your time in discussing and framing the questions.
Awaiting Diana Horton, Headstead, aindia and others to share their update with everyone.
Suresh Reddy also mentioned about increase in new investors last quarter. Until now most would have read or heard about company or CEO from other platforms. Today for the first time they heard the CEO speaking with confidence and that will be reassuring for them, especially given there is a lot of rumor mongering in other forums as said by one of the caller.July 2, 2020 at 9:29 pm #7507jagasworldRegistered Boarder
From Ownwords/jagasworld in moneycontrol.0July 2, 2020 at 10:59 pm #7510July 7, 2020 at 5:20 pm #7553anand84sharmaRegistered BoarderJuly 7, 2020 at 9:01 pm #7556July 8, 2020 at 7:22 pm #7569lycos.rags.to.richesRegistered Boarder
FY19-20 financials presentation notification in exchanges
https://www.bseindia.com/xml-data/corpfiling/AttachLive/ced7ebbb-9533-4b0a-a535-876f62c26578.pdfJuly 8, 2020 at 7:54 pm #7573T9CRegistered Boarder
See in the latest presentation, the number of shares also they mentioned in $. They should take care of these small mistakes.1+July 8, 2020 at 9:20 pm #7574pranilRegistered Boarder
Usd 240Mn invested in business in just last 3 years. It doesn’t help to get any growth either in top or bottom line. Hard to believe usd 160 Mn LOC will bring 25% growth.
Just unbelievable; last 5-6 years usd 500 MN invested in business; it’s 7 times of current market capitalisation. And we are just standing at the same place.July 8, 2020 at 10:27 pm #7577VALUEBUYER001Registered Boarder
But I feel something management has hidden for daum settlement case from books we can not see carrots under earth but see offshoot s we heard in previous concall0July 8, 2020 at 10:36 pm #7578pranilRegistered Boarder
Dear Valuebuyer, daum wanted some USD 40 MN and SKR is negotiating. Where are 460 MN?
Unfortunately I didn’t get chance to ask question in con call. Almost everyone seems to be very happy with performance of company, I don’t really understand…if we should call it good performance. May be difference in thinking. I know many will not agree but I feel this is a key reason why big investors don’t want to invest here. No body cares about daumn, axis or dividend if there is growth. But if we ignor this part we may be surprised after closure of these events.4+July 8, 2020 at 11:01 pm #7579
@pranil, it’s not so easy to run a business like BCG’s. The company has so many subsidiaries and there are many factors you have to consider for growth. You’re asking for simple answers for complex problems but anyway I’ll try to explain it you. My explanation may not be accurate so if you feel it’s wrong you can correct me.0July 8, 2020 at 11:05 pm #7580
There’s a big difference between investing large sums at once and investing small amounts regularly. You should understand the working capital needs of the company, they should pay publishers every month and advertisers pay them after 3-4 months and that’s why accounts payable are very less compared to accounts receivable. They never had large sums to invest at once.
The $500 million you have mentioned is spread over many years, if they had invested the same $500 million at once then the whole picture would be very different. Why else would they want an LOC? You can see startups receiving large sums at once and that’s why they are growing more.
My understanding is this : Year 1 you make Rs.100 in revenue and Rs.20 in profits, and you put all the profits back into business again so if you take 20% profit margin, next year you will get Rs.4 extra i.e total profits will be Rs.24 and year 3 it’ll be Rs.29 and year 4 will be Rs.35 and year 5 will be Rs.42 and so on.
If you see the above example, putting all profits that the company got over the years(Rs.108), you get Rs.42 as profits after 5 years. The above example I’ve given is simple and plain, they can’t have 20% growth rates constantly and there will be other expenses and changes in technology etc. Now, according to you total amount spent is Rs.108 but profit increased by only Rs.22 and you consider it bad but imagine if they got all that Rs.108 at once after the 1st year. There’s a big difference right? The growth rate would’ve been very high.
Also after year 1, they won’t receive the Rs.20 profit all at once, some will be stuck in receivables and they get that money in installments.5+July 8, 2020 at 11:14 pm #7581
Whatever cash they have will be used to buy media immediately i.e. when the receivables are realized then that amount will go to pay the publishers. It works in a cyclical way but the problem is that the cycles are very short i.e it happens every month. If you notice properly, they have improved their operating cash flows every year.
You may compare it with a typical IT company but that is not the case. IT companies don’t have this much working capital needs. There are many costs that we have to consider, they have spent money on improving technology (Compass), to pay for products, collocation centers etc. Also they have paid almost Rs.240 crores to banks (including interest) and that is not a small amount.
I don’t know how they’ll improve the cash flow once they get the LOC but I give them the benefit of the doubt. It’s easy for us to point finger at them but no one here knows the day to day operations of the company so we should trust them now and if they don’t deliver what they promise then we’ll have the right to ask/criticize them. We can’t jump to conclusions now and we should give them time. They know what they are doing.5+
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