Questions to ask / Post-Conference Update

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  • #13119
    vsk
    Registered Boarder
    Topic Author

    NEW QUESTION:
    1. In one of the previous calls Mr. SKR sir mentioned about a stake in edgecase.ai(https://www.edgecase.ai/) and at the right time also plan to increase the stake. How are the things progressing in edgecase.ai.

    Also medcase.health(https://www.medcase.health/about) is a transformed or application version of edgecase as we see KyleGiddens the CEO of edgecase also our Brad Cohen(President and Chief Strategic Officer of Brightcom) is the Chairman of Medcasehealth(https://www.linkedin.com/in/bradcohen/)

    Is there any stake or relation of BCG with these two companies edgecase and medcase health.
    If yes, can you please elaborate a bit with whatever you can ?

    2. What is the progress on initiatives from Mr. Prasad Pisipati initiatives? There was some mention of IoT related initiatives happening any updates that you can share on that if you can sir?

    #13122
    admin
    Keymaster

    Thank you everyone for sharing your queries, I have sent to IR. Special thanks to @hw_tw and as always to @Logan sir.

    Congratulations on a great quarter, exceeding guidance for the second time in a row and also rewarding investors with bonus. This was the company’s best quarter ever and we look forward to seeing this record broken in the coming quarters. Thank you for taking decisions and initiatives that have benefited all the stakeholders. Please convey our thanks to the management team, directors, and employees of the company.

    Customers

    – What’s the total number of CTV publishers we have and are there any new additions in this quarter

    – What is the typical contract period we have with Publishers in general? How many or how much percentage of these publishers have contracts signed up for next year or two?

    43 new publishers added in this quarter
    – What’s the size of these publishers in terms of potential Impressions or page views per month. Do they fall under Top 10 or 20 or 50% of your existing publishers?

    – The percentage addition seems to be small in comparison to the 47k publishers we have. Is this a strategic thing or a cyclical one and can we expect a higher percentage in coming quarters supported by the MediaMint backend team.

    Brightcom Player
    – Could you please share some details on the number of publishers using the interactive ads feature and the volume it is handling as of now

    – In terms of revenue margins, how much percentage it costs higher in comparison to normal video ads

    – Are there any competitors as of now … any new features planned which would be advantageous to us from competition?

    – I guess there is no dedicated page for this similar to BLocal in Brightcom website … request the team to please add this

    Cash flows
    – The FCF is projected equal at 250 and 250 crores for the next two quarters, whereas in the last two quarters our revenues and PAT have increased … What will be the percentage of Profit to FCF ratio we can expect in coming quarters

    Financials
    – You were planning to try out some new accounting / reporting policies inline with large global companies … Could you provide updates on this front

    – Can you appoint one auditor to audit most of your businesses? The comments from the current auditor saying they haven’t audited the subsidiaries individually causes some confusion to less informed people. We understand the process and we don’t have any complaints but it’s just a suggestion.

    – The EBITDA margin of BCG is historically healthy and high … around 31 % in general and around 28% in the Dec quarter … In future too can we expect these margins remain at same levels or improving further

    Acquisitions
    – When do you expect the acquisition process of MediaMint to be completed? Will it be done before this financial year (March end) or will it take more time?

    – Will MediaMint continue to operate as a separate subsidiary entity of BCG or will it be merged with BCG India unit

    – Are we planning for acquisition of single or multiple Audio AdTech companies … In case of multiple ones what is the strategy behind it … any updates on the talks, can we expect LOI to be signed in next two weeks or so

    Future
    – AdTech industry is projected to grow at > 20% CAGR for next 5 years … Can we expect BCG to grow above these numbers. Any ballpark figures for next year, say above 20, 30 or 50% of topline growth excluding acquisitions

    – Do we see any impacts post pandemic or from fed rate hikes and spending … How are we planning to mitigate this and keep our growth intact?

    Strategy

    – Update on AI&ML business. Has there been an increase in this business like the ad-tech business?

    – Do you have plans to revive the company’s IoT business?
    As you predicted many years ago, augmented reality and recently metaverse are gaining more popularity which should benefit IoT companies

    – Any updates on partnerships with Amazon, Meta and LinkedIn

    – In terms of Metaverse, I guess MediaMint is already working on AR/VR related projects for its clients … could you share more details on this on the amount of work being done currently … and future plans in terms of gearing up resources, building tech PoCs, partnerships etc;

    – If time permits, can you explain the benefits of augmented reality and metaverse for ad-tech companies like BCG.

    – Gaming companies like Nazara has entered Adtech space, do we see any possibility of BCG entering into gaming space either as an AdTech player or as a gaming publisher under Lycos brand

    – Given that we will be expecting a good FCF in next quarters too … any plans to utilize these funds beyond the planned Audio AdTech acquisitions … like setting up a Start-up fund say 100 to 200 Cr for Series A, B, C rounds of Investment in early stage startups either AdTech or DM or any other platform based companies … Similar to Naukri’s investments in Zomato, Policy Bazaar etc;

    Others queries

    1) How important is first party cookies now that third party cookies are being phased out? Is this development good for BCG? Do you expect the SSP business of BCG to benefit from this change?

    2) Do you expect streaming giants like Netflix, Disney+ and Amazon Prime to start advertisements on their platforms? Since they can’t expect their subscriptions to keep increasing forever, they’ll either have to increase the prices or start putting ads on their platform to make more revenue.

    3) How is the Indian ad-tech market different from Western markets?

    4) To the CFO – There are some old tax disputes mentioned in the annual report. Can you please provide some information on that.

    5. In one of the previous calls Mr. SKR garu mentioned a stake in edgecase.ai and at the right time also planned to increase the stake. How are things progressing in edgecase.ai.
    Also medcase.health(https://www.medcase.health/about) is a transformed or application version of edgecase as we see KyleGiddens the CEO of edgecase also our Brad Cohen(President and Chief Strategic Officer of Brightcom) is the Chairman of Medcasehealth. Is there any stake or relation of BCG with these two companies edgecase and medcase health. If yes, can you please elaborate a bit with whatever you can?

    #13126
    m4max1979
    Registered Boarder

    Could someone please summarize all the points discussed at the conference call. I missed it this time. Specially the details about acquisition of Mediamint.

    4+
    #13127
    hw_tw
    Registered Boarder

    BCG’s Q3 concall recording

    #13128
    m4max1979
    Registered Boarder

    Thanks a lot mate.

    4+
    #13129
    hw_tw
    Registered Boarder

    My views on some of the points discussed in the call … a bit lengthy one, hope it will be published

    —– Receivables —-
    [SKR, YSR comments]
    – Receivables are around 2095 Cr … most of it is pertaining to this quarter sales

    – On track for total of 500 Cr FCF in next two quarters … We are gung ho about achieving it

    [hw_tw]
    As most of it is for the current quarter’s revenue we could expect significant collections in Q4 and most probably this number will come down in Q4 and FY23 Q1 (excluding growth factor)

    Anyway this High receivable amounts / days is no longer a worrying factor for BCG. It has now successfully overcome this threshold limits and is now into a FCF zone… Yes it is still a problem for its peers who are struggling to swim across this zone and also it will keep away any new entrants at bay … also it is advantageous for BCG as it will now be able to make competitive deals compared to it peers and grow faster while increasing its market share

    —- Other Points —–
    [SKR comments]

    – Publishers count at 43 … The number given is for Full Service publishers … We also have automated model … Will share more details soon in a PPT

    [hw_tw]
    My understanding on this is that, in the Full service model, BCG team will be working closely with the publisher team to discuss on things like ad types, size layout etc; plus many other things … they would be looking to maximize the revenues for the target publisher … mostly this is opted by large publishers with multiple sites

    Automated model, is like a self service type wherein the publisher himself takes care of everything on Brightcom’s platform, its a typical SaaS model

    [SKR comments]
    – Added 12 new Ad agencies on top of 200 existing agencies

    [hw_tw]
    This is a significant increase in a single quarter

    [SKR comments]
    – There are other pure play video players … the major advantage with Brightcom Player is that BCG will also be giving a monetization option to the publishers

    —- Future Focus Areas —-
    [SKR comments]
    – Not interested to get into gaming / content side

    – Not interested in start-up fund creation and partial stakes

    [hw_tw]
    This shows that the team’s strategy is to clearly focus on AdTech business … given the FCF it will be tempting what other new age startups are trying to do with investors money … VC type investing with some crazy valuations in the name of cutting costs

    This also brings the point of low Promoter’s holding … It is again clear that the promoters interest is only in this business and are full-time working only on this business and not trying to do anything outside or even inside … 😀

    —- Long term Visibility and Sustainability —-
    [SKR comments]
    – Contract periods are usually for 1 year and are automatically renewed … budgets are defined upfront

    – EBITDA margins will remain at same level in coming quarters

    [hw_tw]
    Stable with multi-year contracts, provides a clear visibility in terms of revenues, margins and resources etc;.

    You know now why BCG is able to give guidance and is able to meet it consistently unlike other Adtech or midcap IT companies who’s contracts are for shorter periods in months and totally depends on how much the sales team is able to bring in new business on a quarterly basis

    Needless to say Analysts give higher weightage to this aspect and will be comfortable in giving higher PE as they see long term revenue visibility with multi-year contracts coupled with a healthy and industry leading EBIDTA margins … of course this needs to be coupled with other factors like growth, FCF etc; which we will discuss below

    —- Growth Related —–
    [SKR comments]
    – AdTech industry growth will be EVEN GREATER than 20% CAGR for next 5 years and our target is to do better than this … FCF, ROE will help us to do it better

    – Don’t see much impact post pandemic as most people are spending online and this behaviour is going to stay … also more people are purchasing online which has shown a 60% growth last year

    – Ad impressions count has touched 90 billion / month … hope to see this touching 100 billion fairly soon

    – High quality Publishers flowing through Google MCM partnership

    [hw_tw]
    This is a super good news if you are a long term investor … lets decipher this a bit

    Considering it is around 25 to 30% industry CAGR and BCG trying to do better than this figure by a plus 15 to 25% … I guess this is reasonable considering that this year BCG is clocking 80% plus which is 20% above the highest growth rates of 60% seen in eCommerce segment, one of the massive contributor

    So, overall we will be seeing a organic growth of 40 to 55% range in coming years … I am also including MediaMint led growth into this as achieving it would be requiring this teams support

    On top of this growth figures, for the next FY we will have to do some additions
    – The first one is the gap of around 500 to 600 Cr because of lower base of last year Q1
    – The second one is around 185 Cr revenue from MediaMint … This is expected to close max by Feb / Mar end

    This addition will be 500 + 185 Cr = 685 Cr
    40% growth on top of it = 685 + 274 = 959 (near to 20% of 5000 Cr)

    So, the final growth will be 60 to 75% for the next FY

    What about the FCF component … this year the FCF is around 50% of total profit … Assuming it will be in same percentage this could come in the range of 800 to 875 Cr basis above growth figures

    This is just my view from outside, and my expectations on growth and FCF might be totally wrong both on lower and higher range … Things will be clear in March with official guidance numbers from the company

    Listing some important growth drivers and levers which gives us an idea of what is causing growth for AdTech industry how BCG will be capturing it

    Adtech Industry growth drivers – Increased digital time, 5G, Audio, Metaverse, Increased adoption of digital and programmatic ads etc;

    Levers of growth from BCG’s side – FCF, Acquisitions, New Product and Services offerings, New markets, Existing market share increase etc;

    With these growth drivers, levers and projections even on lower side, I am seeing a “Decacorn” in my portfolio … hope it’s not foggy out there for you 😉

    #14028
    hw_tw
    Registered Boarder

    I guess there will be lot of questions from the direct callers related to FA, SHP, CFO/CS appointmentsl etc; … I am not covering them and also limiting my questions list … request @admin to please remove any redundant/ non important questions from this list

    On Overall numbers
    ——————–
    – Thanks SKR garu for a strong set of numbers once again beating industry growth rates … however we fell a bit short from the guidance figures … Could you explain the reasons for the same

    – What’s the impact we see from Ukraine operations

    Receivables
    ————
    – Receivables were 2095Cr in Q3 which is reduced to 1881Cr in Q4 … Considering most of the receivables were from Q3 and were expected to be collected in Q4 this reduction is small … do we expect this figure to remain same or further reduce in this quarter and if so to what percentage

    – Could you share Receivables Ageing sheet across your subsidiaries similar to the one shared post last year’s Q2 numbers

    Guidance
    ———
    In case guidance numbers for this year is kept on hold request SKR to please answer the following questions so that the investors get some idea

    – Given that we had already completed 2 months in this quarter could you share a ball park estimate for this quarter

    – You had mentioned that “Agencies are projecting 68% average growth in 2022 vs 54% growth in 2021” … Can we expect BCG to do better than this growth rate or somewhere around that rate

    – What’s the growth rate we are targeting for the ROE and FCF numbers

    Acquisitions
    ————
    – What’s the reason for delay in MediaMint acquisition completion … Is it on hold, can we expect this to be closed in this month

    – Given the valuation of AdTech companies across the world has come down by 40 to 60%, will there be any change in the target Audio AdTech valuation

    Quarterly Investor Presentation
    ——————————-
    – Along with the results, request SKR and team to please share a quarterly Investor presentation detailing your Financials, Key Metrics across quarters / years along with Product Updates

    #14030
    Logan
    Registered Boarder

    @Admin, these are my queries, please check them once and send it to the IR.

    Congrats on a great year. We hope to see similar growth rates in the coming quarters.

    Queries

    1) Update on forensic audit initiated by SEBI.

    2) In one of the articles in The Morning Context, it is mentioned that the audit was initiated because of lack of disclosure by the company on impairment of assets. You did disclose about it to the shareholders through the exchanges but the same details were not reported in the annual report. Was this the reason for SEBI to initiate the audit?

    3) Did the promoter group (which includes the CEO) sell their stakes in the company? If so then why didn’t they (you) disclose it to the shareholders? SEBI can take further actions against the company/promoters because of this and will have a negative consequence later. This will impact all the stakeholders (management, shareholders, promoters etc).

    4) Why was there a delay in crediting bonus shares? This time crediting of bonus shares took more than 2 months but last time there was no delay and you credited the shares within time. Was the delay because of the absence of company secretary who’d have handled these tasks properly?

    5) Why is the company secretary position vacant since many months? Why didn’t you appoint anyone till now?

    6) The same with the position of CFO, you knew that Mr.YSR would retire in March but still you haven’t appointed anyone to that position yet. You said that you have shortlisted few candidates for the position and also said that the position would be filled in April, now it is June and still the position is vacant. What is the reason for this delay?

    7) All the good work done by the company/management all these years will be forgotten because of few actions like promoters selling their stakes without informing the market and also if the communication with shareholders/market is not transparent.

    Regarding communication, we feel that the company does not take shareholders seriously and you provide details only when you feel like doing so. One example is delay in crediting bonus shares and not updating the shareholders about it even after many days. You decided to update only when there was a pressure from the media. We have to wait till the conference call to get clarity and all our mails and calls will not be answered by your IR department.

    8) We request you to take the initiative to talk to more analysts and the media. Since the company is not covered by many analysts and since it also doesn’t have a proper peer trading in our markets, people assume many things wrongly. For example, in a recent article in the Economic Times (ET Prime) they have written about receivables, loans and advances and that the revenues seem inflated etc without talking to you and getting any clarification from you. They have compared BCG with random companies which is very inaccurate. These can be solved to an extent if you give more interviews and talk to more analysts and institutions.

    9) We have requested you many times to provide complete details of few items on the balance sheet in the annual report but you haven’t taken our request seriously. You have explained in conference calls about those items but still people will have doubts because most of them will read annual reports and only a few will attend conference calls. How will analysts and new investors know what those items are if they’re not mentioned in the annual report? Giving information on those items in investor presentation also won’t matter much because people will always prefer to have those details in the annual reports (items like loans and advances, other current assets, other receivables, other liabilities etc)

    10) The news of forensic audit, reduction in promoters’ stake, delay in crediting bonus shares has brought a huge negative press about the company and also the company is losing credibility. How do you plan to change that?

    11) In the last conference call you said that there’ll be a change in the accounting policy of the company and that we’d get an update in the month of March about it but we still haven’t got any update yet.

    12) Can you share annual reports of the company’s subsidiaries? Since BCG is a mid/large cap now, people will expect more from you and uploading annual reports of subsidiaries will bring more transparency.

    13) When will the acquisition of MediaMint be completed?

    14) We see reports of other ad-tech companies saying that inflation, supply chain issues, Ukraine War are affecting their businesses. How do these impact BCG’s business? Will it lead to a cut in ad spend by most of the advertisers?

    15) Since Netflix has announced that it would start an ad based plan in the near future, what is the impact of that on BCG and MediaMint?

    16) Can you appoint Mr.Arjun Malhotra (who is on an advisory role) as a board member?

    17) Update on Lycos-Daum issue. When do you plan to close this? It would be better for all the stakeholders if this long pending issue is cleared. It’ll bring more credibility to the company.

    18) The money raised from issuing preferential shares for the acquisition of MediaMint is with a subsidiary of BCG. What is the reason for this? Shouldn’t it be with the parent company?

    19) Regarding acquisition of Audio Ad company, what payment options are you considering? Will you again do a preferential offer or do you have plans to raise any debt?

    #14031
    admin
    Keymaster

    Thanks @hw_tw and @Logan. Have mailed the queries to IR.

    Dear Sir,

    Congrats on a great year. We hope to see similar growth rates in the coming quarters.

    Queries

    1) Update on forensic audit initiated by SEBI.

    2) In one of the articles in The Morning Context, it is mentioned that the audit was initiated because of lack of disclosure by the company on impairment of assets. You did disclose about it to the shareholders through the exchanges but the same details were not reported in the annual report. Was this the reason for SEBI to initiate the audit?

    3) Did the promoter group (which includes the CEO) sell their stakes in the company? If so then why didn’t they (you) disclose it to the shareholders? SEBI can take further actions against the company/promoters because of this and will have a negative consequence later. This will impact all the stakeholders (management, shareholders, promoters etc).

    4) Why was there a delay in crediting bonus shares? This time crediting of bonus shares took more than 2 months but last time there was no delay and you credited the shares within time. Was the delay because of the absence of company secretary who’d have handled these tasks properly?

    5) Why is the company secretary position vacant since many months? Why didn’t you appoint anyone till now?

    6) The same with the position of CFO, you knew that Mr.YSR would retire in March but still you haven’t appointed anyone to that position yet. You said that you have shortlisted a few candidates for the position and also said that the position would be filled in April, now it is June and still the position is vacant. What is the reason for this delay?

    7) All the good work done by the company/management all these years will be forgotten because of a few actions like promoters selling their stakes without informing the market and also if the communication with shareholders/market is not transparent.

    Regarding communication, we feel that the company does not take shareholders seriously and you provide details only when you feel like doing so. One example is delay in crediting bonus shares and not updating the shareholders about it even after many days. You decided to update only when there was pressure from the media. We have to wait till the conference call to get clarity and all our mails and calls will not be answered by your IR department.

    8) We request you to take the initiative to talk to more analysts and the media. Since the company is not covered by many analysts and since it also doesn’t have a proper peer trading in our markets, people assume many things wrongly. For example, in a recent article in the Economic Times (ET Prime) they have written about receivables, loans and advances and that the revenues seem inflated etc without talking to you and getting any clarification from you. They have compared BCG with random companies which is very inaccurate. These can be solved to an extent if you give more interviews and talk to more analysts and institutions.

    9) We have requested you many times to provide complete details of a few items on the balance sheet in the annual report but you haven’t taken our request seriously. You have explained in conference calls about those items but still people will have doubts because most of them will read annual reports and only a few will attend conference calls. How will analysts and new investors know what those items are if they’re not mentioned in the annual report? Giving information on those items in investor presentation also won’t matter much because people will always prefer to have those details in the annual reports (items like loans and advances, other current assets, other receivables, other liabilities etc)

    10) The news of forensic audit, reduction in promoters’ stake, delay in crediting bonus shares has brought a huge negative press about the company and also the company is losing credibility. How do you plan to change that?

    11) In the last conference call you said that there’ll be a change in the accounting policy of the company and that we’d get an update in the month of March about it but we still haven’t got any update yet.

    12) Can you share annual reports of the company’s subsidiaries? Since BCG is a mid/large cap now, people will expect more from you and uploading annual reports of subsidiaries will bring more transparency.

    13) When will the acquisition of MediaMint be completed?

    14) We see reports of other ad-tech companies saying that inflation, supply chain issues, Ukraine War are affecting their businesses. How do these impact BCG’s business? Will it lead to a cut in ad spend by most of the advertisers?

    15) Since Netflix has announced that it would start an ad based plan in the near future, what is the impact of that on BCG and MediaMint?

    16) Can you appoint Mr.Arjun Malhotra (who is on an advisory role) as a board member?

    17) Update on Lycos-Daum issue. When do you plan to close this? It would be better for all the stakeholders if this long pending issue is cleared. It’ll bring more credibility to the company.

    18) The money raised from issuing preferential shares for the acquisition of MediaMint is with a subsidiary of BCG. What is the reason for this? Shouldn’t it be with the parent company?

    19) Regarding acquisition of Audio Ad company, what payment options are you considering? Will you again do a preferential offer or do you have plans to raise any debt?

    20) Given the valuation of AdTech companies across the world has come down by 40 to 60%, will there be any change in the target Audio AdTech valuation

    Receivables
    ————
    Receivables were 2095Cr in Q3 which is reduced to 1881Cr in Q4 … Considering most of the receivables were from Q3 and were expected to be collected in Q4 this reduction is small … do we expect this figure to remain same or further reduce in this quarter and if so to what percentage

    21) Could you share Receivables Ageing sheet across your subsidiaries similar to the one shared post last year’s Q2 numbers

    Guidance
    ———
    In case guidance numbers for this year is kept on hold request SKR to please answer the following questions so that the investors get some idea

    22) Given that we had already completed 2 months in this quarter could you share a ball park estimate for this quarter

    23) You had mentioned that “Agencies are projecting 68% average growth in 2022 vs 54% growth in 2021” … Can we expect BCG to do better than this growth rate or somewhere around that rate

    24) What’s the growth rate we are targeting for the ROE and FCF numbers

    #14045
    hw_tw
    Registered Boarder

    The key takeaway for me in this call is SKR’s opening remarks where he hinted on the guidance numbers

    SKR has mentioned that we are looking at 68% average growth in this year … but this might need to be adjusted for things like War, Instagram issues etc;

    Assuming the impact of these things is between 10 to 15% or in a worst case scenario it could probably come down by 20% the guidance figures for this year will be anywhere between 48 to 58% growth over last year sales of 5000 Crores

    So the estimated Revenue figures would be between 7400 to 7900 Crores or around 1 billion dollars which is a significant landmark

    Assuming the EBITDA margins and FCF ratios remain at same levels as before the PAT numbers will be between 1300 to 1450 Crs and a huge FCF of 600+ Crs

    Having said this we need to wait for a more concrete and detailed guidance numbers from the management which would be shared soon … Hope it will be shared ASAP ☺️

    On a lighter note, BCG management is like “CG, CG, CG … We don’t like it, but Investors like it” … ☺️

    #14459
    Logan
    Registered Boarder

    @admin, these are my queries for the conference call, please review them once and send to the IR. Sorry for posting it so late.

    ——To The CFO,

    On behalf of all the shareholders we welcome you to BCG. We hope we will have a great relationship with you as we had with Mr.YSR.

    1)Some section of the market has doubts on BCG’s financials, as the new CFO, what are your thoughts on this and what measures will you take to improve on that front?

    2)What are your comments on the forensic audit initiated by SEBI?

    3)The management said that BCG would produce a free cash flow (FCF) of 500crs by the end of June quarter but now you’re reporting it as operating free cash. The company from the past many years has been reporting a good amount of operating cash flows. What’s the difference between the two and which should we consider?

    4)The auditor has commented that the financials of the subsidiaries are not reviewed by their respective auditors. Why is this so? When will they review the financials? Does it happen every quarter or once a year (when auditing is done)?

    5)Since BCG is no longer a small cap company, we request you to publish the audited financials of all the subsidiaries.

    ——-To the CEO,

    Congratulations on a great quarter, we are excited to see great growth rates in BCG’s business. We appreciate you and the entire team of BCG for all your efforts. Though we all want to concentrate more on the business and the company’s future, few outstanding issues make us concentrate more on them than about the business. Hope we get clarity on all those issues in this conference call.

    1)Should we be concerned about the forensic audit? Market will react extremely to even a small negative comment by the regulator. What are your thoughts on this?

    2)There’s a confusion in the SHP of the promoter holding. In the last conference call you said that you have not sold a single share but we are seeing a significant reduction in your holdings. The same with Mr.Vijay Kancharla’s holdings. In a letter addressed to a shareholder, you mentioned that the reduction was because of pledged shares. If that is the case then will you get back the shares which are being pledged? If not, why did you show it as your holdings all these years? Should we be concerned about this too?

    3)You said in the last AGM that you are going to change the accounting policy and have experts review and comment on the company’s financials. We expected you to publish results of all the subsidiaries like how other mid and large caps do. What’s the reason for not publishing results of your subsidiaries?

    4)Your comments on Free Cash Flow?

    5)The second bonus issuance has created a huge float and as a result the stock price is not stable. Why was the second bonus considered when you had already issued bonus shares previously? Do you have plans to reduce this level of free float?

    6)What’s the update on the MediaMint deal? Is it put on hold or cancelled?

    7)What’s the update on audio ad company acquisition? What’s the name of the target company?

    8)AGM updates? Will it be virtual this time also?

    9)Effect of high inflation and slow growth/recession on BCG’s business? Should we expect lower growth rates for this FY?

    10)Update on consolidation of all the subsidiaries?

    11)Update on the preferential shares allotted last year. Will you acquire those LLPs or will those shares come to the market?

    12) What’s the reason for the delay in appointing a company secretary?

    13) In all the previous conference calls you had said that there’ll be an improvement in investor communications but till now we haven’t seen any improvement. When can we expect that to happen?

    14) Update on Lycos deal with DAUM?

    #14460
    tanv151
    Registered Boarder

    I would like to add the below to the list of questions.

    a) Shed some light on 44ventures and its management team. How and why they are associated with Brightcom Group? Lakhs of shareholders purchased BCG shares in the last year and half and they will hugely benefit from this info.

    b) How are we utilising the money that was raised for Mediamint acquisition and what impact it has made to the overall business?

    c) Please provide free cash flow guidance/estimates for the remainder of the financial year

    d) Does the number of locked in shares shown on the SHP include bonus shares?

    e) Timelines for purchasing shares for ESOP?

    #14461
    vkhare789
    Registered Boarder

    I have below question:

    Company has told that it has zero debt since last year. If this is true then how-come pledged shares were transferred to lenders? Who are these lenders when company has zero debt?

    #14462
    admin
    Keymaster

    Thank you @Logan, @tanvi151 and @vkhare789
    Have sent the consolidated questions to the IR just now. Hope they are taken.

    ——To The CFO,
    On behalf of all the shareholders we welcome you to BCG. We hope we will have a great relationship with you as we had with Mr.YSR.
    1) Some section of the market has doubts on BCG’s financials, as the new CFO, what are your thoughts on this and what measures will you take to improve on that front?
    2) What are your comments on the forensic audit initiated by SEBI?
    3) The management said that BCG would produce a free cash flow (FCF) of 500crs by the end of June quarter but now you’re reporting it as operating free cash. The company from the past many years has been reporting a good amount of operating cash flows. What’s the difference between the two and which should we consider?
    4) The auditor has commented that the financials of the subsidiaries are not reviewed by their respective auditors. Why is this so? When will they review the financials? Does it happen every quarter or once a year (when auditing is done)?
    5) Since BCG is no longer a small cap company, we request you to publish the audited financials of all the subsidiaries.

    ——-To the CEO,
    Congratulations on a great quarter, we are excited to see great growth rates in BCG’s business. We appreciate you and the entire team of BCG for all your efforts. Though we all want to concentrate more on the business and the company’s future, few outstanding issues make us concentrate more on them than about the business. Hope we get clarity on all those issues in this conference call.
    1) Should we be concerned about the forensic audit? Market will react extremely to even a small negative comment by the regulator. What are your thoughts on this?
    2) There’s a confusion in the SHP of the promoter holding. In the last conference call you said that you have not sold a single share but we are seeing a significant reduction in your holdings. The same with Mr.Vijay Kancharla’s holdings. In a letter addressed to a shareholder, you mentioned that the reduction was because of pledged shares. If that is the case then will you get back the shares which are being pledged? If not, why did you show it as your holdings all these years? Should we be concerned about this too?
    3) You said in the last AGM that you are going to change the accounting policy and have experts review and comment on the company’s financials. We expected you to publish results of all the subsidiaries like how other mid and large caps do. What’s the reason for not publishing results of your subsidiaries?
    4) Your comments on Free Cash Flow? Please provide free cash flow guidance/estimates for the remainder of the financial year.
    5) The second bonus issuance has created a huge float and as a result the stock price is not stable. Why was the second bonus considered when you had already issued bonus shares previously? Do you have plans to reduce this level of free float?
    6) What’s the update on the MediaMint deal? Is it put on hold or cancelled? How are we utilising the money that was raised for Mediamint acquisition and what impact it has made to the overall business?
    7) What’s the update on audio ad company acquisition? What’s the name of the target company?
    8) AGM updates? Will it be virtual this time also?
    9) Effect of high inflation and slow growth/recession on BCG’s business? Should we expect lower growth rates for this FY?
    10) Update on consolidation of all the subsidiaries?
    11) Update on the preferential shares allotted last year. Will you acquire those LLPs or will those shares come to the market?
    12) What’s the reason for the delay in appointing a company secretary?
    13) In all the previous conference calls you had said that there’ll be an improvement in investor communications but till now we haven’t seen any improvement. When can we expect that to happen?
    14) Update on Lycos deal with DAUM?
    15) Shed some light on 44ventures and its management team. How and why they are associated with Brightcom Group? Lakhs of shareholders purchased BCG shares in the last year and half and they will hugely benefit from this info.
    16) Does the number of locked in shares shown on the SHP include bonus shares?
    17) Timelines for purchasing shares for ESOP?

    #14463
    vkhare789
    Registered Boarder

    It is highly surprising that no question was asked regarding the most important topic which shareholding pattern. Are we even going to get those shares back?

    6+
    #14464
    odysee
    Registered Boarder

    @vkhare789, your question is not clear.
    When you ask “Are we even going to get those shares back?”, who exactly are you referring to?
    The company cannot possibly pledge its shares -only shareholders can. The promoters in their individual capacity or a promoter entity can do that usually to borrow funds with those shares being provided as collateral or security. The pledged shares if returned on settlement of dues or the loan, would revert to the individual or the entity.
    The lender may sell the pledged shares if the borrower is unable to return the funds within the agreed time frame although this is an exception rather than a regular practice.
    The company is not involved in this transaction at all.

    #14465
    vkhare789
    Registered Boarder

    Hi Odysee, Thanks for replying. I have two questions.
    1. If company is debt free, who are these lenders to whom the pledged shares were transferred. There should be no lender as company has zero debt.
    2. I am referring to promoters like SKR and vijay kancharia from whose account shares were transferred to lenders’ account. When are these promoters going to get their shares back? How confident is SKR that promoters will get their shares back from lenders.
    3. As you would be aware about the response letter which sent to one of shareholder’s query regarding SHP in which pledged shares issue was explained. Why was this response not made public and published on exchanges?

    I believe these are important set of questions and we didn’t see any question in conference call regarding same.

    #14466
    Sumeshnair2005
    Registered Boarder

    Dear vkshare bcg is debt free and has not taken loan its promoters who hv taken personal loan keeping their shares pledge any shareholder can pledge their shares even you and me and can get loan … the pledge will be returned whn the loan is paid back by skr and vijay .. lenders once invoked the shares can sell thm but I dont think skr will allow that to happ as the value of those shares is much more than whn it was pledged

    #14467
    radhutheoptimist
    Registered Boarder

    Someone asked about reason for the second bonus and SKR did mention that second bonus was issued to spread out the equity to deter anyone accumulating shares and creating problems later. Looks like he was worried about harsh take over bids and once the shares are widely spread out it may not be easier. My assumption is SKR recognised this takeover threat and I assume he is doing everything to mitigate. So logically I can speculate that promotors are increasing their share holding in someway. Why it is not show in SHP is not yet clear. Questions related to SHP is intentionally avoided and we may have to leave it there and trust that promotors are doing the right thing.

    Overall I gained more confidence as usual after attending the concalls… Two years down the line we will be handsomely rewarded. Till then we need to bear the labour pain 😉

    #14468
    odysee
    Registered Boarder

    @vkshare789, Sumeshnair2005 has answered the questions posed by you.
    The September 30th SHP when released would shed more light on the respective holdings. I personally am not overtly concerned with whatever may have transpired. If some disclosure shortcomings have been there, then the promoters will have to deal with those whenever necessary.

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