[admin]

This new thread will be used to discuss fundamentals and business related activities. As all the important information is getting diluted in general discussions thread.

Price should not be discussed here, please use the technical discussion thread for that purpose. For anything other please continue using the general discussion thread.

[aindia]

The Future of Media: Closed Ecosystems White Paper
JUL 06, 2020
The media landscape is undergoing a generational shift, as open-web advertising rapidly moves into logged-in environments built on premium content. These “Closed Ecosystems” — which include digital and commerce platforms, social media, streaming video and audio as well as connected TV services and mobile apps — are where consumers consume the vast majority of media, and where brands spend the vast majority of their budgets. The concentration of dollars and attention within Closed Ecosystems has been happening for some time, and now the pace is rapidly accelerating. Soon, Closed Ecosystems will be the only way for brands to truly connect with customers.

Operating in this reality presents brands with new challenges: namely, the challenge of delivering a consistent message across these fragmented environments. Brands need to match the relevancy and personalization that consumers have come to expect in an era where algorithms curate highly individualized media experiences in every content modality, beginning with social but now extending to audio and video. Doing that requires the facility to operate between these Closed Ecosystems with fluency and ease.

[profile inactive, exited bcg]

“Sundar Pichai says Google to invest Rs 75,000 crore in India over next 5-7 years”

https://www.moneycontrol.com/news/business/sundar-pichai-says-google-to-invest-rs-75000-crore-in-india-over-next-5-7-years-5541381.html

Pichai said he wanted India not only to benefit from next wave of innovation but to lead it. Google, he said, will focus on the following four areas of investment;

– affordable access to Indian languages

– building new products and services unique to India

– empowering business, and

– leveraging artificial intelligence (AI) in health, education and agriculture

Doesn’t it relate to Brightcoms growth prospect in India as well, in the next few years?

Earlier, SKR had commented during the conference call regarding AI: “And we are already working in agriculture right now. We’re working in e-commerce. We are also working in medical. We’re working with a very large player in medical with — in terms of 1 of the largest internet companies in the world for their colonoscopy analysis.”

Sundar Pichai being an alumnus of IIT Kgp, which is SKRs alma mater too, any chance of potential tie-ups with Google in the future?
Pichai has stated that they are looking at equity investments as well. Can SKR and Brightcom capitalize on this opportuniy (if it is one)?

[odysee]

@dileepvn, how many fingers shall I cross? Possibly all! It would be terrific if some form of business partnership were to develop between BCG and Google. Some form of client/competitor status already exists but a newer development at a different level would be truly exciting.

[profile inactive, exited bcg]

Let’s hope SKR takes note. He should know better. I was thinking SKR might know Pichai personally as well. I remember SKR mentioning about Pichai in one of his interviews. Let’s hope for the best. In any case, Google, being a highly data driven company, looking into the digital sector in India tells us a lot about the growth prospects we have here in the sector. Brightcom should definitely benefit, either way.

[admin]

So here is the answer to why #bcg #brightcom group ltd. has net cash flow issues. it is an issue industry wide, read below as adexchanger article briefs, https://t.co/gUIN2c4bdm

— Mayur (@mayur78900) July 23, 2020

[VALUEBUYER001]

Thanks dear Saul Goodman Ji you were not sleeping even@ 2.00 a.m and write detailed information everytime.you please take care of your health.with it’s present credit history the chance of getting loan in india is very very little and doubtful. Hope BCG gets loc in USA very soon to get rid of the troubles and achieve growth and other objectives

[Logicalspeak]

Please refer my message #7744 & #7745 in general discussion thread and the article posted in #7791 by Admn,

The working capital to the extent of present revenue is available with the company.EVERY YEAR THE NET PROFIT REPORTED LESS the increase in receivable since preveous year is also available with the company for each year.

Now, the question comes whether all the profit of a year is to be additionally reinvested back in business or can it be less than that, so as to have liquid cash balance and to accumulate liquid free cash balance for different other purposes.

The company has not reinvested whole of the net profit of last say six or seven years. If fully reinvested back all the profit in digital ad business, how they have invested in their other failed ventures, and other presently going on ventures and other stated intangible assets under development , all without any clarity.

Thus, the company have to calibrate, how much liquid cash out of the net profit of each year should be reinvested back in business and how much liquid cash should be retained as free cash flow for dubt repayment and divident payment or buy back etc.The company have to calibrate it by proper planning as to how many percentage of each yeat net profit should be retained as free cash balance and how much should be reinvested.

Free cash flow is not a spontaneuos magic like Angel which appear suddenly without any notice.

I have illustrated clearly in my #7744 & #7745 , that roughly 2000 crore net profit reported in last around six years. Receivable six years back was 700 crore and after about six years it increased to around 950 crore. Thus increase in recievable during last about six years is only about 250 Crores.

Thus company had in its hand, hard cash of 2000 – 250 = 1750 Crores approximately and absolutely for its discretionary spending during the last about six years. All other talks are nonsense.

Revenue as per my earlier post should have been increased to approx. 6000 crore had company reinvested whole of it in digital ad tech business with 120 days gestation period or to say 3 times yearly capital rotation cycle.

Thus company definitely channelised major portion of money for other purpose. What are those areas and where is the revenue and profit from that should be explained by company.

The article posted by Admn in #7791 is nothing new and CEO had kept telling since May years that they recieve back the money spend only in 3 to 4 months and the same is reasonably reflected in their number of recievable days, which were more or less same or some times improved also. Therefore there is no doubt there. The same will be helpful for the people who had no clarity till now. Otherwise the same is of no importance as the same was mentioed and reflected in their recievables of all preveous years.

[lycos.rags.to.riches]

@logicalspeak, basically BCG needs a excellent CFO who can do solid finance planning – tracking cash flow and do capital allocation based on financial predictions. BCG lagging behind in this, Hope their consolidated entity has a better CFO.

[VALUEBUYER001]

Thanks dear Saul Goodman Ji for your explanation.with closure of bank loan of Axis Bank and oak exit momentum may pick up in price of share let’s hope for the Best

[admin]

@Logicalspeak – The article is not something new but it is coming from a authentic source which validates that the issue of receivables and net cash flow is industry wide problem and not something specific to BCG. Apart from that the article also has many things which corroborate what Saul has shared before. Let us appreciate him for sharing all knowledge with us.

[Logicalspeak]

Dear Saul and Admn,

Let us not further argue on the said messages of mine and Saul or anybody. Let the reader’s read both and come to their own conclusion, as further elaboration will make more confusion with the reader.

BUT ONE THING IS CERTAIN, that the value errosion happended over years due to various and obvious reasons was enormous and it is only natural to catch up those eroded value to its intrinsic value particularly because, now all the issues and problems of earlier years are vanishing or getting solved one by one and in most of those issues only management’s official announcements are pending. I think on this point everybody will have concurrence of opinion.

All the best to all the long term investors.

[nitin_asce]

@saul Goodman I noted one very interesting thing from your post. BCG payables are just 10% of receivables whereas crite it is around 80-85%. Do you think that bcg used profit from last few years to reduce payables.

[sateanna]

Good point @nitin_asce .. It just goes to show what SKR was telling is true. He mentioned that he had to pay his creditors immediately, whereas he would receive only after 90 days or so…Only thing that worries me is the aging of the receivables. SKR claims that none have gone bad & need not be provisioned for.

[bitran]

@Saul Goodman, Thank you for your detailed articles. Itz enlightening. Just wanted to correct on one point wherein you said BCG is an SSP. I beg to differ on that. Brightcom is a SSP but BCG as a group contains many entities which includes Boldwin which is a DSP and recently they acquired Vixi tv. So connected tv also is part of BCG. Then, I also suspect they also own a list of publishing assets which may be consolidated into a single umbrella. Add Lycos also to the list. We need to get clarity on all these in the next conference call. Feel free to correct me if I got this wrong.

[lycos.rags.to.riches]

Saul, I would beg to differ on your comment that market is extra critical on BCG, market has always been critical about the companies which are not open to investors. Even blue chip companies like Infosys are made to stand on their toes when market sees something red in their business.

If BCG management or investor relations has spent only 10% of the effort and time spent by you in making us understand BCG business, things would have been different over the past 10 years. Investor relations cannot be just a mail id on the website.

We wouldn’t be still discussing on revenues and profits if BCG had just provided details of the below three questions during each acquisition they made.
How the acquisition is being funded
what is the expected revenue growth
what is the business growth

Market wouldn’t be critical if BCG is more open about new initiatives, every company has competitors but still they give details about the initiatives. This makes the investors feel that the money invested is being put to proper use.

Market wouldn’t be critical, if BCG was able to find a buyer for Oak shares as promised which i strongly believe is the reason behind the current down-slide in stock value.

[Logicalspeak]

This is what I told, that in last about six years they had abouy 2000 crore net profit reported and increase in recievable is 250 Crores (six years back recievable was about 700 crore and now recievable is 950 crore, therefore increase in recievable is only 250 crore since last about six years).

Therefore, net hard cash available with the company during last about six years was 2000-250= 1750 crore for there discretionary spending ( this is not on my assumption basis. If some body is claiming that my above post is by simply assuming X,Y,Z….etc, then they should agree to the point claimed by negetive boarders in MMBthat there profit is only book entries and No real cash).

THIS IF totally reinvested by the company in digital ad tech business, their revenue should have been way higher. But that is apparently not the case here.

Then what are the other areas where major portion of that money chennelised by the company.That should be clarified by the company, which appear to be there in the form of smoke in the above message. But what revenue is generated from that has not been disclosed by company, if at all any.

Those revenue and profit if any has not beem disclosed by the company so far. The company should clarify that area in detail. Now due to @Bitran’s message, it seems @Saul had to realise my point .

[bitran]

All, my message was primarily to project how valuable BCG is when we consider the entire group and not only brightcom. Yes, there is lack of clarity on certain fronts but it is very much possible that management wants to test the waters first and want to wait until there is sizable revenue out of it to communicate openly. Additionally, all knows that Oak will be selling and hence they might have thought of not revealing all their trump cards as anyway share price is in penny. Hope management attention come to the investors plight and they will do the needful to improve the market sentiments and share price.

[T9C]

How can a public company hide it’s investments and reveal it later whenever they want? If you see latest clarification sought by nse reg: B-local notification, they asked when was it launched? And BCG replied 3 months back. why did not they inform when they launch it?

[T9C]

We all discuss and decide to ask questions in call about the investments, growth, receivables etc. But they will create a new issue during the results and we all will be shocked with that and forget about above issues and just concentrate on this new issue.
This is what happening for the last 4-5 years. And they will not reply to any of our questions.
And in one of their presentation, they mentioned buyers are lined up for Oak shares, but Oak is selling in open market, how can they inform exchanges such false information?

[Author]

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