NSE News - Latest Corporate Announcements

Friday, June 29, 2012

Jayant Agro Organics: May 2012-CIF,FOB Data

Director General of Foreign Trade has published Export data for Month of May 2012 
as per DGFT data Jayant has Export FOB (Free On Board)for May 2012 at 187.59Cr 
You can get the info at DGFT Website (Link)

License no info for Jayant is available here (Link)
IEC Code for Jayant is: IEC: 0393002047

Here is the processed data (May 2012) for every one..

April 2012 FOB Data was: 242.07Cr (Link)
May 2012 FOB Data is: 187.59Cr

PN: This is publicly available information on the internet and there is a possibility of misinterpretation and misrepresentation.. Please do your own deep dive before investing.

Monday, June 18, 2012

Jayant Agro: Swastika Investmart recommends with target price 217.60

Swastika Investmart has recommended a buy on Jayant Agro Organics with starting price as 128 and target price of 217.60 , Duration 9-12 months, Expected return 70%

Pls note standlone results have been considered .. while we generally review consolidated data..
Link to original document (Link

=happy investing

Saturday, June 16, 2012

Jayant Agro Organics: Star Trading House, April 2012 FOB Data

According to Director General of Foreign Trade.. Jayant Agro Organics is status holder as "Star Trading House" valid till 2017

Link to original Document: (Link)

A Star Trading House category needs exports of 2500Cr FOB value in current + 3 yrs ie past 4 yrs (Taken together) which translates to about 625Cr each year.. 

We need to look when Jayant enters into Premier Trading house category 1,875Cr exports every year for past 4 yrs..Jayant should reach that in next 3 yrs as we have already crossed 1770Cr in March 2012..

Link to Original Document: (Link)

Jayant Agro Organics has the IEC Code: 0393002047
Now last time the concern was what is the FOB value of exports.. we had the license numbers and  CIF Value.. The DGFT website has the provision where you can enter the License Number and the IEC Code and you can get the FOB Value of the export. 
We already have the facility for determining the License number for Jayant Agro
VKUY and FPS April 2012 (Link)
DEPB April 2012 (Link)

So we can use Jayant Agro Organics  IEC Code (0393002047) and License Number from the above links and get the FOB Value at this Link

So now we can get the FOB value which should translate to sales numbers reported by Jayant 

Now just to get everyone up and running I have collated the FOB data for April 2012 for Jayant Agro Organics here it is.. (You can validate by following the process mentioned above in red)

So as per the DGFT Export license issued in April 2012 Jayant has FOB export sales of 242.07Cr in April 2012..
  PN: As per my communication with Jayant management (for Jan-March 2012 Sales figures) there is a misinterpretation by me of the License and FOB Data issued by DGFT.. (for Jan-March 2012) (comments section of previous post link)

Last post we had discussed about a google search to find the license data.. well DGFT has provided a link where you can get the license data.. (Link)

VKUY and FPS data is under: (Duty Credit Script Link)
DEPB is under DEPB Link)

So no need to google search just go to DEPB website and get the latest data..

PN: These are my personal views/interpretation about publicly available information... please do your own deep dive before investing.

Saturday, June 09, 2012

Jayant Agro Organics: Peek into the future..

Q1 results are nothing but sales and profit for the months of 
April-May June which is reported in "July"

Director General of Foreign Trade (DGFT) publishes India's 

export data every month.. so by July we can get our hands into 
the dgft export numbers for Jayant agro in month of April, May 
and June giving us a fair idea of what the sales number will look 
like in Q1 report in July..

If you want to find the dgft export numbers for Jayant for a month 

in the past you need to search in google with the keywords 
"Licences issued for Category dgft (month) (year) Jayant agro Organics"
Search for Month: Jan year: 2012 will be
Licences issued for category dgft Jan 2012 Jayant Agro Organics
The search we are looking for is under the heading "Licences issued for Category"

There are 3 sections under which Jayant Agro Organics reports 
export data..
- Vishesh Krishi Upaj Yojana
- Focus Product Scheme
- DEPB Post Export
Focus Product Scheme and Vishesh Krishi Upaj Yojana are

 in one link while DEPB Post Export is a separate link..

So for each month's export data we need to collate data from two 
links provided by DGFT
For the month of Jan 2012 the two links are:-
Vishesh Krishi Upaj Yojana & Focus Product Scheme (Link)
DEPB Export (Link)
The reported data is CIF (Cost of Insurance & Freight) ..

 it does not disclose the actual value of export which 
is reported as FOB (Freight on Board)

Luckily I did get my hands on FOB Data from dgft which was 

available to public for Feb and March 2012 and compared 
CIF and FOB ratio.. According to me..for Jayant 
FOB is approximately 30 times CIF for Vishesh Krishi Upaj Yojana
FOB is approximately 50 times CIF for Focus Product Scheme
FOB is approximately 30 times CIF for DEPB Export 
(I did not have the FOB data for DEPB Export .. its my 
own assumption)

Right now you can peek into Jayant Agro's  CIF data for April 
2012 just Google search for:-
Licences issued for category dgft April 2012 Jayant Agro Organics
remember there are two links from which you need to collate 
the data..

PN: I did speak to the management about the data being published
 by DGFT and my interpretation of sales numbers..
Jayant Agro management's understanding was that I had drawn 
wrong conclusions and hence my estimated sales numbers for 
Jayant are due to mis-interpretation of DGFT data... 

So please understand any information you conclude from DGFT 
data is your own interpretation.. and quite possibly wrong.. Its a 
Peek into the future but not necessarily a true complete picture..

I am long Jayant Agro Organics..

=happy investing

Saturday, June 02, 2012

Gujarat Ambuja Exports: March 2012 Year End Result Review

Gujarat Ambuja Exports reported its year ending March 2012 results on May 21,2012.

1. Year on Year..
- Sales have increased by 8.92%
- Expenditure has increased by 11.77% (Includes Forex loss of 4.34Cr for full year.. Q4 there was a forex profit of 11.23Cr)
- Profit Before Depreciation Interest and Taxes has decreased by 56.65% (Margins have contracted from 7.42% (2011) to 5% (2012) as percentage of sales)
- Interest expenses increased by 66.50%
- Taxes reduced by 56.78%
- Net profit was down 47.18% (PBDIT was down 56.65% and net profit was down only 47.18% so there is a 9.47% +ve difference between PBDIT and Net Profit)

2.  PBDIT Margins have contracted as percentage of sales from 7.42% (2011) to 5% (2012) this is a cause of concern..
- though interest payments have increased by 66.50% (Y-Y) as percentage of sales.. interest payments are less than 1% which is still manageable and due to the managements clear intentions to maintain Zero long term debt levels..
I must add that GAEL is an agro processing major which procures raw material during harvest season when its cheapest.. and then the agro products are further processed during the year. Short term loans are taken from banks during the harvest season and paid backin the next 6-12 months.. Interest rate hike by RBI has impacted GAEL by increasing its interest costs by 66.50% (Y-Y)

3 GAEL has 4 divisions. - cotton yarn, - maize processing, - agro processing, - Windmill
- Cotton yarn division seems to be the culprit.. reporting -26.02cr Net profit(+11.29cr 2011) .. which means cotton yarn division itself has a profit impact of 26.02 + 11.29 = 37.31cr. (Y-o-Y)
- Maize processing division also has had a sharp fall in profits as well as profit margins..
Profit margins:- 12.57% (2011:-20.22%)
Profit impact on 2012 profits is 25.81Cr (Y-o-Y)
The uttarakhand maize processing plant had a tax free period which could have come to an end and hence we are seeing profit margins contract.. so going forward the maize processing division profit margins might remain around 12.57% is my understanding. 
Karnataka plant might get tax breaks.. which could help in increasing margins once again. (Lets hope)
- Agro Processing division has seen its profit margins expand.to 4.24% (March 2011:-3.65%) this had a positive impact on net profit of 12.85Cr (Y-o-Y)
- Wind mill division  has a small but consistent contribution of 4.46Cr.

Current Assets:- 609.38Cr (528.11Cr-2011)
Current Liabilities:- 531.51Cr (431.26Cr-2011)
Net Current Assets:=>>> Current Assets - Current Liabilities =  77.87Cr (96.85Cr-2011)

A drop in "Net Current Assets" indicates that the management has been active in improving capital efficiency by holding back lenders (Increasing Liabilities) and reducing advance payments to creditors (Decreasing Current Assets)
Net Current Assets:- 77.87Cr (96.87Cr-2011) indicates a reduction in working capital requirement even as sales have increased or remained consistent... a big positive.

Conclusion:- GAEL has reported a drop in profits of 47.18% even as sales have remained constant. a dig down indicates.. drop in profits due to Cotton yarn division and margin decrease in maize processing division.. Maize processing division margin drop could be permanent as uttarakhand maize division was enjoying tax incentives which are set to expire(my opinion)...  
Net Current Assets have reduced which indicates the management is in control and taking steps to improve the health of the company.. 
GAEL is doing just fine and accumulating wealth for its investors.. but one must remember the global investment climate is turning out to be long term negative.. my personal opinion is further expansion plans should only be done after careful review.. its best to accumulate financial assets (cash) as some "not so well managed" company assets might be available cheap for taking..