[VALUEBUYER001]

New sebi instructions will infuse 40000 crores investment in small cap of mid cap

[odysee]

I never got a chance to come on at the conference call even though I was very prompt with the pressing of the keys. Primarily because of one thoughtless and inconsiderate caller who went on and on, denying many others a chance to participate. My question, if Admin or Logan can address, is whether the BCG group generates any revenues emanating from India in the digital advertising space? If so, any thoughts as through which entity? If not, then doesn’t the resounding new mantra of a Digital India provide tremendous opportunities for BCG in the home theatre? I am assuming that the parent listed holding company is only in the software services and consulting business. Thanks in advance.

[odysee]

I should clarify that some Indian entities are existing clients of BCG and hence it would be reasonable to expect some revenue generation although not clear as to the quantum.

[VALUEBUYER001]

Nee notification has come loc documents will be executed soon loc process almost over good information

[admin]

Sub: Update on the status of the line of credit process

BSE Notitifaction Sep 14 2020

https://www.bseindia.com/xml-data/corpfiling/AttachLive/c4a9897c-91f8-4890-9268-5fc10b8e1853.pdf

[NIRAJ1]

Skr in conference of BCG:
• Growth 12% seen after so many quarters. Profit rise of 22%.
• VOLUME GROWTH from 30-40billion impression to 80billion impression. Almost 2 to 2.5 times.
• BCG in top 10 in goggle alternative ADS Companies.
• AXIS BANK DEBT—Bcg sent proposal and axis bank committee had met and decided this matter. They have sent latter which will not reach us due to logistic problem.
• Daum and consolidation of subsidiary’s’ are on hold. Loc will be on parent or subsidiary companies –not cleared.
• AUDITOR has cleared audit. No new or old issue found out. This is good news. Issue of Impairment taken well and declared by skr.
Interpretation:
• AXIS debt will be settled in few weeks once proposal latter received.
• Loc procedure is almost complete and will get in near future – timeline few weeks to maximum 4 months.
• Now we are very closed to LOC AND AXIS DEBT SETTLEMENT. BCG has started showing growth- that is also good news.
• Skr told that BCG will be higher in term of business once LOC received…
o KEEP PATIENANCE FOR 3-4 MONTHS…

[Logan]

@odysee, programmatic advertising is picking up in India recently and it is not so big as compared to western countries. If you remember, BCG represented Microsoft in India few years back and I don’t think they made any money in that.

For a smaller company like BCG, they’d always look at returns before taking any risks. Bigger companies can invest for many years even without profits because of their size. If smaller companies want to do the same then they need regular investments in the company.

You can see startups gaining more market share because they always get funds regularly.

Who will give funds to BCG just to try something? When the management tells shareholders that BCG wants to enter new market then shareholders will be happy then later if they don’t make any money there then the same shareholders will start criticizing the management.

Startups and private companies can do this because they are not public and their investors will understand the problems.

But with public companies you have to answer to many people, some will understand the problems and others will not. So public companies have to be very careful before taking any risks.

Many companies will take on debt to do something like this and they end up losing a lot of money which BCG has never done.

I read somewhere that GroupM is dominant in digital marketing in India. GroupM is very big and they can test for many years.

Programmatic advertising is very big in the US even with having bigger companies there. Smaller companies can make money there but the same can’t be applied here. Maybe if BCG gets bigger then they’ll start looking at India and other markets.

56% of Affle’s revenue comes outside India. I think even InMobi is doing more money outside India.

[lycos.rags.to.riches]

Hi Friends,

As per my view the conference call was pretty decent.

Firstly SRK mentioned that some analyst have also joined the conf call even though they didnt ask any questions. I am sure SRK would be having seperate conf call wih analysts.
It was evident from the fact, SRK highlighted the struggles over the past few years, lessons learnt and the future vision. 1 Million-10 Million-250 Million. If everything was good BCG would have been a billion dollar company. As per my view he mentioned the above points to the analysts.

Secondly as per the information he got ,Axis board has approved the payment plan and he is just expecting a formal letter. This should be solved soon.
Thirdly LOC has already crossed the deadline, so SRK should have expected the LOC to be provisioned last quarter itslef, so thats the reason he had mentioned the in the previous conf call that he is seeing green shoots above ground. But unfortunately process got delayed, even though he said revised timeline of 3-4 months, i assume it should be sooner than later.
Finally for the first time he told about the future vision of the company to be a global company which successfully implemented will be very good for us..
Overall as per my view this quarter will be critical for all investors to take a decision. I hope we would reach respectable stock value before we get LOC

[m4max1979]

I know its a bit late for this but one thing I have noticed on this and some previous conference calls, some of the retailers who ask questions appear so arrogant. Either they do not have a decent command over the English language or they do it deliberately, I don not know. Case in point, the conversation between promoter and participant who insisted that company should fire the investor relations personnel and the conversation regarding timeline for LOC. I feel that the same points could have been asked more tactfully.

[odysee]

@Logan, thank you for your comments on programmatic advertising in India. It does explain the lack of a forceful BCG initiative in India. On the other matter of fund raising etc., my objective thinking ( although now I’m biased being a long term retail investor) is that SKR should never have gone public in the first place. Better to grow as a private enterprise, where VCs and PE investors understand the potential risks and potential phenomenal gains, rather than be at the mercy of cunning market operators and manipulators. This can stymie the entire growth process as we have witnessed. Further, a critical and important change is required in the mindset of the promoters if they go public, and that is treat all stakeholders including small retail shareholders with respect and consideration, and pay heed to their needs and aspirations. Good, regular and timely communication with clarity rather than ambiguity is a key requirement. Earning the goodwill of 40,000 ( earlier 30,000) small shareholders is an essential requirement too. How does a promoter ( and management) fulfil that? In what manner can those small ( not fully informed) shareholders be rewarded and not made resentful? Unless Mr Reddy and his fellow promoters seriously address this glaring anomaly in their otherwise professional running of the company, they will have a tough time in coping with the disadvantageous public perceptions and sentiment.

[bitran]

Hi All,
I also agree to the perception that the conference call was pretty decent. The key point to note is where SKR mentioned that the impressions had grown from 30 billion to 80 billion. That is huge growth even with out LOC.

However, what hit the investors is the time frame of 4 months which he mentioned for the LOC to come through. Many believe that the share price will rise only after LOC and Daum settlement and hence this resulted in a lot of negative vibes across groups and forums. Most of the investors were dejected and negative reviews started flowing. Since many of the investors are traders, their thought process was to sell and buy back when the share price fall further or when the share starts showing upward momentum.

My take is, Market always takes into account future earnings and prospects. A multinational company having a litigation is nothing new and that too when a settlement agreement is there with Daum, there is no need to be worried about it. Axis is also a done deal and just waiting for the official closure. The management also seems to be keen on settling the past issues and look forward.

Having said this, it is very easy to understand the retail investors mentality ( including mine) and their frustrations. When stocks like affle, Tanla and many others running wild like there is no tomorrow, BCG which has huge potential is still lagging much behind. Many of them sold Tanla and bought BCG in the past and it is heart breaking for them to see the current state of affairs.

We should applaud SKR for the grit he had shown when the company was going through tough times. At the same time, he need to realize that it is high time he need to take strong actions for the share holders to see some decent price appreciation. A CEO is ultimately evaluated based on the value he created for shareholders. He has already started making right moves but much more is needed. I hope and believe, he will do the right thing and take the company forward, both in business front and also from shareholder perspective.
Good Luck to all the investors.

[VALUEBUYER001]

I fully agree with you bitran Ji

[tanv151]

Today is the last day of Virtual Analyst meet that was scheduled between Sep 14 – 17. I hope the outcome is positive this time. In any case, I believe the company should give some updates irrespective of the results, unlike last time where we never heard anything. Fingers crossed…

[profile inactive, exited bcg]

Approximate figures for last financial year (in USD)

Criteo:
Profit ~ 10 crores
Market cap ~ 76 crores

Trade Desk:
Profit ~ 10 crores
Market cap~ 2000 crores

Affle:
Profit ~ 0.9 crores
Market cap ~ 100 crores

Brightcom Group:
Profit ~ 6 crores
Market cap ~ 5 crores

Well, what could be Brightcom’s true intrinsic value considering its growth and longevity prospects?

[lycos.rags.to.riches]

@tanv51, I dont think BCG can update anything about virtual analyst meet, Analyst meet are just to answer queries/concerns from analyst regarding the business of the company.There wont be any immediate outcome out of the meet. Nevertheless it will increase the exposure of BCG’s business coverage

[tanv151]

@lycos.rags.to.riches understood. Do you think they can at least give the number of analysts/firms they met/made presentations to? This will prove the efforts made by the company and could play a part in the journey of restoring lost credibility. I guess they can, as SKR was able to mentioned the number of analysts who were on the conf call. I strongly feel BCG should make use of every opportunity big/small to communicate more with the market and shareholders. After all, communication has been one of the key concerns and they need to continue to work on this along with closure of outstanding issues.

[sateanna]

Normally they do submit to the exchange the date, time & the institutional investors met.

[Rathi_b]

They did that last month, but a review or summary or important minutes of the meeting if they give info about that to investors it’ll be much appreciated, as we all here can educate ourselves better about the prospects of the company better.

[VALUEBUYER001]

Any news regarding axis bank loan closure?

[Rathi_b]

22 nclt

[Author]

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