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The site was facing technical problems from few days and domain also got expired. This has been resolved. This forum has completed 5 years!!
I have revoked the posting rights of Vidyashankar. In his posts, he was critical about SEBI and supportive of the debarred management. The matter is pending before SAT. I would like to exercise restraint to avoid the development of any narratives which can be against SEBI.
@vidyashankar – The reason for your optimism could be due to your ongoing interactions with the management and being privy to things which are not in public domain. As a leader of BGSHA, you should respect the sentiments of all the investors. Calling boarders naysayers is not appropriate especially after going through this long ordeal. The fact of the matter is that general perception of retails investors is still on the side of skepticism. Serious offences were allegedly committed by the management as per SEBI. A lot is pending from BCG management so as to regain the investors confidence – publishing results, SHP, appointing KMPs, conducting concalls, AGMs, cooperating with lawful enforcement agencies, abiding listing formalities and so forth. Saying all this, I would wish good luck for the efforts your team is doing. However coining phrases like blockbuster of amritkal at this point only leads to suspicion/unnecessary speculation. Rather your focus should be to persuade management to bring outcomes which are more investor centric.
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1+adminKeymasterThe tragic accident has brought into focus for early deployment of indigenous TCAS system or known as Kavach.
HBL is already 3X and Kernex 4X after it was discussed. This is not an recommendation but to share my investing style which is kind of theme based investment – to own businesses in trends that are expected to play out over the long term.
3+@Logan – Appreciate your effort in framing all valid questions. Thanks to @Brightspot and @radhutheoptimist. I have mailed the questions to IR.
Thank you for arranging the conference call. Here are the questions,
To the CFO, Mr.Narayan Raju
– Can you please give details on this notification shared by the company
Authorised Mr. S.L. Narayana Raju, CFO to file an application on behalf of the Company under
Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 for
the purpose of settlement of the proceedings initiated by Securities and Exchange Board
of India (SEBI) issued under Rule 4(1) of the Securities and Exchange Board of
India(Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995- Adjudication
u/s 15A(b) and/or 15HB of the Securities and Exchange Board of India Act, 1992 in the
matter of Brightcom Group Limited.
What is the application that you have filed on behalf of the company and what is the settlement about?– You and Mr.Acharya were appointed by the board to work on closing the Lycos deal with DAUM. What challenges are you facing regarding this?
– What is your comment on the forensic audit done by SEBI and how would it impact the company if the report is negative? We know that this is hard to answer given that it’s a sensitive issue and SEBI has not yet shared the outcome but can you please give some details on this?
– Why isn’t the parent company sharing the audited results of its subsidiaries? What are your thoughts on this since the majority of the revenue comes from these subsidiaries?
To Mr.Peshwa Acharya,
– What are your thoughts on forensic audit?
– As the president of group strategy, please share your thoughts on Lycos deal with DAUM and the audio ad company acquisition. Why is the company taking so much time to close these two deals?
-To the CEO, Mr.Suresh Reddy,
– Thank you for initiating this call to address shareholders’ concerns and also for improving the communications with the shareholders (through mails and calls).
Because of a few issues we have no choice but to focus more on them than on the business and growth aspects of the company. We request you to address all these concerns and close all the pending issues at the earliest so that we can start talking more about the future of the company.
– Update on forensic audit. How will you address the shareholders if the report comes out as negative?
– Is the audio ad company acquisition canceled? If it’s not canceled then why is it taking so much time to close the deal? Are there negotiations still on and are they related to valuations or any other topic? Can you provide some details at least on this?
– What plans do you have to bring stability to the stock price? We know that the movement of stock prices is not in your control but if you take necessary actions you can bring some stability. The past few years have been a rollercoaster ride for the investors and we would appreciate it if you would take necessary actions to end this.
– Update on shareholding pattern of the promoters. Why didn’t you disclose the actual numbers earlier and waited till 2022 to disclose? Was it because of any threat of a hostile takeover etc?
– Will you get the pledged shares back or should we consider the current holding as the final promoter holding?
– What if SEBI levies a penalty on you for this? And how will it impact the shareholders?
– Few LLPs who were allotted shares back in 2020 and 2021 are doing intraday trading and controlling the stock prices of the company. Why did the management issue shares to these LLPs? You assured us that they won’t do this kind of trading and that those shares won’t come to the market. What actions will you take on this?
– Why did the new company secretary quit? Is it because of the forensic audit and other issues?
– There is a trust deficit in the market wrt BCG. What plans do you have to change that?
– When can we expect Q3 results?
– Any timeline for ESOP share purchasing?
adminKeymasterThanks @Logan, @kmr003 – I have sent the questions to IR.
Dear Sir,
Congratulations on a great quarter. Here are the questions for the conference call
To Mr.Peshwa Acharya,
– Congratulations on a great quarter. We wanted to hear your thoughts on BCG’s India/standalone business and when we can expect to see growth in that business like that of the consolidated business.
– What are your thoughts on how the company is received in the market and being the president of group strategy, what strategic plans do you have currently to improve BCG’s image and change the perception of BCG in the market? In spite of having great business and excellent growth rates, the company’s valuation is not reflecting that and is lagging by a lot. You have been with the company for more than 2 years and you must be knowing which all areas to improve. All the shareholders will be thankful to you and the management if you take steps to improve BCG’s image.
To the CEO, Mr.Suresh Reddy
– Congratulations on a great quarter which exceeded our expectations. The improvement in free cash flow is a healthy and positive sign and we hope to see similar performance in the coming quarters
– In the last conference call you said that Brightcom of 2023, 2024 will be different from Brightcom of 2020, 2021, 2022 etc. Can you please explain what will be different and share your future plans?
– Do you expect to see a slowdown in the business and advertisers cutting their ad budget in the near future because of the macro environment conditions?
– In the last call you said that BCG owns a stake in companies like Boldwin, edgecase, Onomagic etc. Can you reveal the percentage of holding in these companies and how they are related to BCG? Will you be acquiring 100% of these companies? (Boldwin and Onomagic’s businesses look similar to some of BCG’s subsidiaries)
– Does BCG have a stake in companies like Literally Media, MindAd and other companies that are under 44 Ventures’ management?
– Why is it taking so much time to reveal the name of the audio ad company? What’s the update on the final agreement? Is it still in progress?
– What’s the update on Lycos deal with DAUM?
– Update on forensic audit
– Regarding Quantum computing, how much are you spending on R&D?
– In the past you had said that the shares allotted to few investors in 2020 & 2021 would not come to the market but few of these investors like Muskaan Limited and Pankti Commosales have sold all their shares and others like Hansraj, Sahitay and Mangal Commosales have sold part of their holdings. Already the value of BCG eroded a lot in the last 6-8 months and if these investors sell their shares then it’ll bring more supply. What are your thoughts on this?
– Now that the MediaMint deal has been reworked, what plans do you have for the backend operations of BCG?
– Finally, looking at the stock price slide and volatility, we shareholders are a little anxious. What is your message to all the shareholders on this? We know that stock prices are not in your control but we would like to hear your thoughts. The company is doing very well on the business but that is not reflecting in the stock prices.
– Any update on the BCG organizational restructuring?
– There is still confusion in the Share holding pattern . Morning context has published news on the same.
Regards,
Admin, brightcominvestors.com
adminKeymasteradminKeymasterThank 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?adminKeymasterThanks @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 percentage21) 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 idea22) 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
Hi @anbuviji – Welcome to the forum. I too noticed that a forum member has removed some of his posts for some reason. Subsequently there was a glitch to access this thread directly from homepage which is resolved now. Everyone can now start posting. Please feel to discuss freely, there is absolutely no restrain.
adminKeymasterThank 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 quartersFinancials
– 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?@Logan – I have thanked you many times, but want to thank you once again. We all are lucky to celebrate each of these milestones only because of your knowledge sharing which reinforced the shape of things to come.
I have been reading lots of articles about personal finance since more than 15 years, stories of people who invested in Infy, Wipro early. I always had this feeling that if I could get a chance to come across such a scrip in my life. Glad that we all have discovered BCG at an early stage and this Indian company is simply admirable.
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