Financial Results & Limited Review for June 30, 2013
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Ricoh India swings to profit in Q1’FY’14
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Ricoh India seems to be bang on target to achieve 1000 Cr sales in FY14. So far, with respect to the nature of their business, they have always been weaker, when it comes to performance in Q1 of every year. But they have successfully created an exception over here.
Revenues have grown from 97.56 Cr to 171.09 Cr, which indicates 75.36% growth.
Surprisingly, the company avoided the loss for the quarter, and managed to show a profit of 3.18 Cr vs a loss of almost 28 Cr.
My Views:
The script looks excellent prospect for long term investment. Again the script was locked in upper circuit as soon as the results were announced. But somehow, the stock is not able to hold on to levels above 55. May be the pressure on small cap and mid cap stocks is not helping their cause.
Anyways, being a long term investor, one should not worry about those short term factors, and in my opinion, one can still buy at these levels as of now, until we see how the company performs in next quarter.
Excellent results vis-a-vis June 2012 !!! Future is extremely bright subject to two caveats - Exchange rate and increase of import duty on printers, etc. risks looming large on the business of Ricoh India. May be sooner or later Ricoh Japan will have to create a production base in India. They are already doing refurbishing, toner refilling unit etc. at Gandhinagar Unit where they have an excellent facility and large parcel of land in a well established Industrial Area very near to Ahmedabad. Gujarat today offers excellent atmosphere for business and this should prod Ricoh, Japan to move further coupled with exorbitant custom duty, fluctuating exchange rate both detrimental to Ricoh India's grandiose plan of things
ReplyDeleteThanks for the valuable info....
ReplyDeleteRupee has to stabilise at some stage whether 60, 62 or 65 does not matter. However, if take the case that rupee will continue to fall in times to come and will not stabilise at all is a different matter and scenario. But nobody thinks so and it is quite certain that gradually all price rise arising out of exchange loss will be passed on to the customers. That gives only a temporary set back to the business prospects of Ricoh India. However, their revised business-model is intact and quite promising. But if Rupee stabilises at a lower level, it throws exciting opportunity for Ricoh India for creating a production-base in India and for which it has excellent infra-structure(ready built) by way of trained-manpower, more than 40000 sq.mtrs industrial land in the proximity of Ahmedabad, Gujarat being touted as the most promising state and ever growing nascent market for it`s products and an export market in the neighbourhood of Sub-continent, etc.etc. I will be an aggressive buyer if it seeks extra-lower levels due to temporary set-backs !!!
ReplyDeleteRicoh India Opens its Multi Faceted Facility in Gujarat:
ReplyDeleteRicoh, global giant and a leader in the field of Office & IT Solutions strengthened its existing Facility at Gandhinagar in Gujarat by introducing state of the art toner bottling operations The main objective of this initiative is to provide benefit to Ricoh’s customers through improved efficiencies and lower costs. This toner plant is made with the cooperation between Ricoh's India and The Chemical Technology & Products Business group of Ricoh Company Limited. The plant will fit in with the company’s corporate culture of “Harmonise with the environment” and will make social and environmental contributions towards the sustainable development of society. Apart from providing job opportunities at the plant, it will supplement CSR initiatives of being environmental friendly as company will be recycling the used toner bottles. The inauguration also marks the 1st anniversary of Ricoh Thermal Media production line in this Gandhinagar facility. Spread over 40,000 sq meters in area, this facility is of strategic importance to Ricoh India`s operations as it houses its Logistics Centre, Refurbishing Centre, and Thermal media operations.
The Toner bottling activity is central to its entire operations as toner is an essential ingredient for the performance of its machines. Going forward, the company is considering expansion of this facility to carry out its Learning & Development activities from there as well. This facility is expected to significantly contribute to Ricoh’s existing business lines, which are carried out through its 24 location offices and a robust Network of over 2500 Dealers and Business Associates spread across the country. The company also has several tie-ups with various Distributors and OEMs for its IT Services Business. Through this vast Network and expansion in its Business Portfolio, Ricoh has emerged as a one stop solution provider to meet the entire range of its customer requirements in the field of Office & IT solutions.
Mr. Tetsuya Takano, Managing Director and CEO of Ricoh India Ltd stated, “At Ricoh, we believe in operational efficiency and enhanced productivity. Ricoh has been making rapid strides in offering advanced solutions by showcasing the skill set and technological knowledge that help our clients to deliver better results. Positioned as a One-stop-Solution company, Ricoh will now be offering value-added services to further optimize processes. Our business expansion plans here have been undertaken to further enhance our operational efficiencies, which will further enable us to serve our customers better”
Mr. Manoj Kumar , Sr Vice President & CFO of Ricoh India Limited stated, “Gujarat has always been very close to our hearts. We started our manufacturing operations here way back in the early 90s. We have always used our facility here as the major nerve centre for our company wide operations. From time to time, we have carried out our key operations like Logistics, Learning & Development, and Refurbishing from here. We are indeed, encouraged by the business friendly environment in Gujarat and are quite upbeat about the likely future initiatives which the Government will undertake for the industrial growth in the state. We feel that this is the right time for us to invest here and expand our presence by introducing state of the art facilities like this one. The launch of this facility once again demonstrates the strong resolve of Ricoh to provide value products at affordable cost to our esteemed customers”
Source: MoneyLife