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Alok Industries

harishtshiyad
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665 Messages

undefined: Analysis and comments by Mr. Harish Shiyad, CMA, Mumbai on Alok Industries Ltd March 2020 Results 1. At present Alok is working at 30% capacity utilisation with around Rs 800 crores turnover with Rs 200 crores losses. After takeover by RIL, once it starts operating above 55 to 60% capacity, it will start making profit. This does not include business and profit from PPE kit and N 95 mask activity. That will be icing on cake. 2. PPE kit and N95 profit will be from April 2020 and will be range of Rs 50 to Rs 100 crores per quarter till this activity remain. 3. Exceptional gain of Rs 2052 crores is due to effect of resolution plan being implemented, being one time has to ignored for future results. 4. Interest is payable only fresh loan of Rs 5550 Crores and interest is not payable on Rs 22682 Crores %u201CARC debt%u201D assigned to JMFARC. I would just ignore Rs 22682 crores and there is no additional cost due to this, so no worry. 5. Note 2-b, 2-f and Note 10 are to be read together and there is treasure hidden in this note. This will be game changer. 6. Deferred Tax liability/assets are normal item line in every company and only book entries to be ignored. 7. Auditors comments are compliance requirements and It will have sea change once resolutions plan in totally implemented. 8. As per Note 4, certain creditors have filed petitions for certain relief which are pending. According to me, theses are not sustainable, so final implementation of resolutions is few days away from here, but no negative to this. It is matter of time. It is %u201Cblessing in disguise%u201D 9. Note 3 is for benefit to old bankers %u201CCOC%u201D 10. Operational efficiency and benefit of scale of operations after resolutions plan in totally implemented will start accruing. Disclaimer: I have long position in Alok

3.44 PM Aug 2nd
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