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Attached presentation on financials for FY20 in dollar terms (BSE notification July 08 2020)
Attachments:
— Brightcom Investors Forum (@BrightcomInvest) July 7, 2020
Hi @Rathi_b, AI/ML initiative is at a very nascent stage. In the investor presentation you can see they are working on applying AI/ML in the field of healthcare and agriculture. In the conference call management said about working with few healthcare institutes or so which will help to access a large amount of data. Like for every AI/ML algorithm model, data should be fed to train the system so that it is finally able to work on its own as a independent automated system which will then be used for Predictive Analysis, for e.g the new data can be used by the system to diagnose early stage of cancer and several other ailments. AI/ML can be applied in a wide range of services but healthcare and agriculture seems to be one of the promising ones even for Indian market.
AI/ML technology is already used in programmatic advertising in their leading Compass 2.0 platform. All this learning can be helpful to explore other verticals and that is why the company is foraying into this. LIL project is an Indian subsidiary 100% owned by Brightcom Group with applications in all the mentioned areas.
Brightcom Group getting featured in the ‘Bull Side & Sell Side’ June 2020 edition.
“Brightcom Group Rides on Digital Advertising Solutions Service Boom”Attachments:
1+adminKeymasterThanks @headstead for the bringing a vital observation from the conference. It is important to know the future prospects of every business in which we are invested, especially in this uncertain time and it is comforting to understand that the business is not impacted and rather looking for new opportunities arising out of adversity.
3+#brightcomglobal
"We put the tech in Adtech" pic.twitter.com/Mv5HizxY8k— Brightcom Investors Forum (@BrightcomInvest) July 2, 2020
1+@buffet – nice update.
Thanks Saul and others for your time in discussing and framing the questions.
Awaiting Diana Horton, Headstead, aindia and others to share their update with everyone.
Suresh Reddy also mentioned about increase in new investors last quarter. Until now most would have read or heard about company or CEO from other platforms. Today for the first time they heard the CEO speaking with confidence and that will be reassuring for them, especially given there is a lot of rumor mongering in other forums as said by one of the caller.
adminKeymasterLot of queries regarding con call.
Dial in the access numbers (provided below) and mention your full name. Operator will then ask if you are retail or institutional investor, to which you have to say retail investor. That’s all and you will be connected to the call.
If you are within India, access below numbers
Access Number 1 – 1800 103 3881
Access Number 2 – 044 7126 1301For international investors, please refer the company website for more details,
http://brightcomgroup.com/investors/Date: 02/July/2020.
Start Time: 17:00 Hrs IST (Indian Standard Time)0Welcome @headstead, your esteemed presence will add value to the forum and give immense confidence to every investors.
5+Re-posting MMB post by aindia (as it was marked offensive)
IMPAIRMENT VS.BCG-SIZE OF CONSOLIDATED BALANCE SHEET:
Supporting Data Read it from 2011-12 to validate the below conclusions
2008-09: 382 cr
2009-10: 450 cr ( up by 88)
2010-11: 575cr ( up by 125)
———————————————————
2011-12: 1264 cr(up by 689)-Effective year of merger
2012-13: 1605 cr( up by 341)
2013-14:1802 cr ( up by 197)
2014-15:2084 cr.(up by 282)
2015-16:2396 cr ( up by 312 )
2016-17:2852 cr ( up by 456)
2017-18:3263 cr ( up by 411)
2018-19:3464 cr ( up by 282)———————Abs.Growth of 2970
2019-20:3270 cr ( YoY de-growth of 194)*
————- ——————-
Over a 8 year merger period (FY 12-FY 19):
Abs.Growth of B/S is ₹2970 cr. ( fm 1264 to 3464)
Average growth of B/S per year : ₹371 cr
YoY (FY’20- FY’19) the de-growth of B/S is : (minus) ₹194 crWritten off legacy impairment amt fm FY 20 audited B/S: ₹868 cr
How? May have used First In Last Out method to drop impairments across overseas subs from FY 20 B/S. Components could be Definitive 194 cr de- growth of FY 20 ; 194+₹ 371cr ( eight year average of upside)+ an entry of ₹303 cr. drawn from one year of ave, all totalling to ₹868 cr. It reads like,194+371+303. NOTIONALLY equivalent to just under 2 years of average growth of B/S size plus de-growth reported in FY 20 audited financials. The brighter side of this tragedy is, we have to take the current b/ s size is CLEAN and can stand any Due Diligence from here on.Timing wise, it’s perfect , since the very size of b/s can afford such a bulky cut. Even the resultant post the impairment B/S size is sitting pretty at ₹3270 cr.Why now and How does this help?
The need may have been driven by the top 10 auditor demanding a clean enough b/s , a must for LoC sanction. The prudent part is it’s timed when it is carved out of the B/S when the size of impairment could be accommodated by a much bigger grown up b/s.
Why worry ?
It’s a balance sheet level impairment effecting BOOK VALUE. The adjusted BV is still very healthy and way above the current mkt price. It is announced at a time LoC sanction is on the horizon.
No hit to PL on this count. Reported PAT and EPS stands relevant.Why LoC sanction is key?
On top of flattening ( no commensurate lift up in) TRs in the recent years and the top line of Digital Business is exhibiting a healthy growth, LoC dollars gushing in ,whenever, will have a significant and positive impact on growth in topline and PAT. If this is how the script plays out, the phenomenon of doubling every 5 years of EPS in the coming two FYs period is to be expected
A healthier free cash flows are to be expected in support of better dividend announcements and re-rating of the share price.Note: The above notion is backed by factual verifiable data and some interpretation of the data. Please check if this notion is erraneous( chk data and the math pl) and raise a red flag, so I correct and you don’t get impacted by any negative outcomes.
Monetizemore has another article which deserves special attention!
HOW TO BEST MONETIZE LATIN AMERICA (LATAM) TRAFFIC
The monetization potential for Latin America, also rightfully labeled as the “Next Great Advertising Ecosystem,” is indeed very promising. LatAm is one the most dynamic advertising regions and publishers should not ignore the potential of traffic coming from this geography.
“Brightcom – an ad network that caters to both advertisers and publishers. We’ve seen strong performance for geographical locations such as the US, Latin America, and the Asia Pacific.”
Please do check out this tweet to get a better understanding –
#Brightcom has a complete set of digital marketing tools with extensive global reach ( India, USA, Europe, LATAM, APAC) compared to its competeriors, which include large global players.
Source: Investors Presentation (BSE) pic.twitter.com/X81NwdX1dl
— Brightcom Investors Forum (@BrightcomInvest) July 1, 2020
adminKeymasterNSE Notification: SHP until June 30 is released.
Pledged shares has further reduced from 50% to 33.41%
https://www1.nseindia.com/corporates/corporateHome.html?id=spatterns&radio_btn=company¶m=BCG
adminKeymasterQuestions for conference call on July 02 2020
Have tried to take as much questions we have discussed and ordered based on priority. As discussed, will be sending mail to IR shortly.
1. “Certain legacy items on the balance sheet, across all subsidiaries have been impaired, in view of projecting a healthier overall balance sheet going forward. We will send out a detailed note to clarify further.” Please let us know more on this impairment.
2. Please let us know on the status of Axis loan closure.
3. Please let us know on the status of Oak sale.
4. Regarding share pledge, with whom they are pledged and when they will be released? Redmond Investments, part of the promoter group holds close to 5% of the company, it has pledged 100% of its shares. In the previous annual reports it was mentioned that the pledge was because of ICICI Bank loans but that loan is paid off yet the pledge is still there.
5. Is there any plan to close Daum issue by having alignment discussions in virtual meeting? By when can we expect to happen?
6. Reason for auditor making a remark regarding irregularities in payment of statutory dues and income tax.
7. We appreciate the management’s efforts to resolve the outstanding issues but at the same time the company has to look at market sentiment also. When it comes to the financials of the company there’s a lot of ambiguity in the stock market. Many people are trying to spread negative and false information about the company. Our suggestion for the company is to appoint a Big 4 auditor or BDO Global to audit the company’s India operations as well. Appointing BDO will bring trust, credibility, recognition and also boost investors’ confidence. The company can appoint BDO for FY 2020-21.
8. We understand that the company doesn’t want to give out sensitive information about it’s subsidiaries but since there’s a lack of trust in the market about the numbers, the company should find a way to give information about it’s subsidiaries’ financials. We need to see auditor’s signature on the subsidiary’s financials. Even the analysts expect this.
9. We need a breakup of many items in the balance sheet. There are many items classified as “other” and the loans and advances are very high and there’s no information about them in the footnotes either. We all have confusions in that, it’ll not only help us if you give us the details but it’ll also help analysts who want to track the company.
10. You may say that these are followed according to accounting standards and give verbal answers but we need a presentation on that and also they have to be mentioned with proper details in the annual report.
11. Promoters salary not disclosed in the annual report. We don’t need verbal answer to that, we want it mentioned in the annual report.
12. What is impact of major advertisers avoiding advertising on Facebook in 2020?
13. COVID-19 ‘s impact on the business and how much hit will the business take going forward.
14. Market share in the industry and how well is the company prepared for the future?
15. Impact of various companies investing in digital sector in India and how our company can take advantage of that.
16. Can the company’s AI division take advantage of disruptions happening in the healthcare industry due to COVID-19?
17. LOC amount and how much growth rate does the company expect after taking LOC?
18. On LOC, we know that interest rates are very low in the US (close to 0%), will the company get loans at lower rates or has to pay higher rates?
19. Need more details on LIL Projects, what their operations are and who their clients are.
20. On Edgecase.ai, has BCG invested in the initiative? Nature of the partnership.
21. Any update on the initiatives taken by Pisapathy which was discussed in the last conference.
22. The CEO needs to promote the company on various business channels like CNBC TV18, ET Now etc.
23. We understand that the company doesn’t want to disturb people like Jacob Nizri, Brad Cohen, Etai Eitany, Shirley Lowenstein, Yaniv Ben-Atia with market related activities but you can share their views and opinions on the industry on your social media platforms and doing this will educate the investors and also we can know more about the company’s subsidiaries and the people involved.
Price trend discussion is not allowed. Moreover you had also put a figure in your previous post.
0@Pranil – You have again disobeyed the warning. Any statement related to price projection is not permitted here, no matter if its higher or lower. If violated again, you will be blocked permanently.
0adminKeymasterThanks @Pranil, @Sateanna, I will be sending email to IR on behalf of members of brightcom investors community forum later today evening.
Before sending it, will rearrange the order of all the questions we have received so far based on the priority and post it here. Suggest few of us (3-4) to also send the final list to IR with a request for extending the call by at least 30 mins.
adminKeymasterQuestions for conference call on July 01 2020
1. Despite investing over usd 150 MN In business over last 5-6 years; why the top and bottom line is US $ term is flat? How long management expect the investment will go without adding to bottom line?
2. Is their any plan to close daum issue by having alignment discussions in virtual meeting? By when?
3. What is impact of major advertisers avoiding advertising on Facebook in 2020?
4. Impairment is shocking; why we never get any indication of such huge scale of problem? How can we restore transparency?
5. Pledges Shares – With whom they are pledged and when they will be released?
6. Planning of Organic Growth
One person asking all the questions wont be permitted as there will be others in queue waiting for their turn. Maximum two to three questions a person can ask.
Agree. We can follow same thing as we did last time, sending the list to IR two days before the conference. Hopefully this time too the management will start by answering queries received by mail. If anything is missed or further clarity is required someone can follow up.
I will be posting the questions we have discussed so far in the thread – https://brightcominvestors.com/forums/topic/questions-to-ask-for-conf-call-on-17nov19-2pm/
At the end we can order all the questions according to priority. Suggest the final list to have not more than 8 questions and some of us can mail them to IR.
2+Business picked up in May, June: Brightcom CEO
“The fourth quarter was a slower quarter. We had some challenges initially as some markets were impacted by COVID-19,” Suresh Reddy, Chairman and Managing Director of Brightcom, has said.
“There, however, is a momentum in May and June as there is an increase in consumption of content during the pandemic,” he said.
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