VIKAS WSP - Q3 FY 19- RESULTS AND DEVELOPMENTS

VIKAS WSP

Q3 FY 19 RESULTS AND 

DEVELOPMENTS

Vikas WSP - “ Vikas” means "Development" WSP Stands for "Water Soluble Polymers"

VIKAS WSP was established in 1988. The Company is one of the India’s foremost guar gum powder (GGP) manufacturer, supplying to all sectors of the food industry with an extensive range of quality products. Besides food, the Company also offers guar gum for technical applications such as pet food, oil drilling and fracturing, textile printing, paper making, etc. Per annum production capacity of all grades guar gum powder is 58800 MT.

FUTURE OUTLOOK, OPPORTUNITIES AND THREATS

The  Company  is  world’s  leading  provider  of  guar  gum  polymers,  knows  how  much  traceability  means  to  food  and pharmaceutical producers. It offers a complete and trustworthy range of guar polymers world-wide and can fully prove their origins. Traceability serves both regulatory and consumer requirements. The Company is known for proven production processes, advanced quality systems and reliable supplies. These are the reasons that the Company has abducted most of the expanding market of guar polymers. Company’s R&D has a gimlet-eye on the application problems and their solutions which goes a long way in expanding its business in all segments in the years ahead. Currently, Vikas is the sole producer of “Certified Organic guar polymers” and the same is an opportunity for the Company to spread its wings in markets where none existed before.

VIKAS WSP	Dec '18	Sep '18	Jun '18	Mar '18	Dec '17	YOY	QOQ
Net Sales	202	192	187	215	178	13.18	5.03
Raw Materials	162	172	167	179	138	17.41	-5.6
Employees Cost	9.19	8.85	5.93	5.99	4.29	114.22	3.84
P/L Before Other Inc. , Int., Excpt. Items & Tax	18.91	1.1	4.35	20.15	16.23	16.51	1619
Interest	6.3	6.41	7.82	14.89	10.08	-37.5	-1.72
P B T	12.61	10.88	10.03	10.14	6.15	105.04	15.9
Net Profit	9.61	9.29	10.23	8.59	7.97	20.58	3.44
Equity	20.44	19.44	19.44	19.44	19.44	5.14	5.14
Basic EPS	0.49	0.48	0.53	0.44	0.41	19.51	2.08
	10.9
MP
	VOLUME 189,275
PE RATIO	5.5
52W L H	8.62	17.5
FV	1
170319	1 week	2 week	1 month	3 month	6 month	9 month	1 year
Price	10.62	10.44	10.38	10.65	12.04	12.41	13.05
Gain / Loss	2.82%	4.60%	5.20%	2.54%	-9.30%	-12.01%	-16.32%

1.         FINANCIAL HIGHLIGHTS : Standalone  financial  highlights  are as follows:  

Standalone Financial Highlights (IGAAP) (Amount in Lakhs)

Particulars               2017-2018           2016-2017

Revenue from operations 69,629.78     19,363.86

Other Income                        487.55    484.74

Total expenditure                  67,543.81:29,339.04

Finance cost                          4,645.14 :4,477.85

Depreciation                         3,470.77  : 3,470.31

Loss before tax                     2,573.52  :(9,490.42)

Tax expenses                        (322.18) : (1,091.68)

Loss for the year                   2,895.70:(8,431.50)

STATE OF COMPANY AFFAIRS   

• Revenue  from  operations  increased  from  Rs. 19,848.60 Lacs to Rs. 70,117.33 Lacs.

• Loss Before Tax increased from Loss of Rs. (9,490.42) Lacs to Profit of Rs. 2,573.52 Lacs.

• Net Profit increased from a Loss of Rs. (8,431.50) Lacs to a net Profit of Rs. 2,895.70Lacs.

For financial  year  2017-2018,  the issued and paid up share capital of the Company was Rs.  13,74,39,600/-  divided  into  13,74,39,600  equity shares of face value of Re. 1/- each and at the ending of the financial year ended March 31, 2018, the issued and  paid  up  share  capital  of  the  Company  was  Rs. 19,44,39,600/- divided into 19,44,39,600 equity shares of face value of Re. 1/- each

• The  members  of  the  Company  in  their  extra ordinary  general  meeting  held  on  April  21,  2017 have  approved  the  issue  of  5,10,00,000  equity.

DEVELOPMENTS :

 

Introducing OZONISED Premium WHEAT FLOUR (Free From All Pesticides) Initially 100 MT/Day Wef February 2019 For Home Consumption And Neighboring Countries (Middle East) Produced By Employing SWISS WASHING TECHNOLOGY 

Management is doing all its endeavors to develop newer food products in addition to guar gum, for catering into varied food applications globally.

Company has produced OZONISED WHEAT FLOUR which is free from all pesticides, herbicides, fungicides, fungus metabolites, micotoxins, storage insecticide residues and adhered dust. Ozonation is done with an ozone-oxygen steam (0.05 to 11.5ppm ozone) to wheat grains to remove all these elements with boiling water. The expected turnover during FY20 is over 500 Crore from domestic and overseas.

Food and Drug Administration (FDA), declared ozone on June 26, 2001 as a Generally Recognised as a safe substance under Federal Register Vol. 66 No.123. Also USDA approved the use of ozone on certified organic foods vide Reference 21 CFR 173, 368. The product would be produced in Rajasthan from whole wheat grown in natural habitat of The Thar Desert that receives more than 100 Sunny Days for wheat crop maturity.

company is improving day by day and on regular basis. keep on watching the Company''s Corporate Announcements regularly as it is working actively for developing innovative food products. : 13th-Dec-2018

Vikas WSP - Company has received orders for Rs.206.78 Crore Thermogel-20 guar gum for health care applications for the production of coconut-milk from its MNC customers to satisfy their overseas and domestic needs. These orders would be executed within January 2019 through March 2019.

The product has been used and approved the pilot results at the end use, therefore, now the company received commercial orders (domestic & export) for Rs.206.78 Crore. It is a potential business of several million pounds (LBS) quantity in the global markets including that of Indian market as per survey conducted by the company''s surveyors. : 3th-Dec-2018

Vikas WSP - Company has received orders for Rs.243.09 Crore Thermogel-30 guar gum and DP-100 guar gum for yoghurt, dairy, milk, health care applications. Company received these orders from its customers globally. These orders would be executed within December 2018 through January 2019. These are repeated orders for this product.

The product has been used and approved the pilot results at the end use, therefore, now the company received commercial orders (domestic & export) for Rs.243.09 Crore. It is a potential business of several million pounds (LBS) quantity in the global markets including that of Indian market as per survey conducted by the company''s surveyors.

Vikas WSP - Corporate Announcement For US Court Litigation To Obtain A Sum Of US$ 40.00 Million (Approximately Rs. 276 Crore) -Southern Dist. Court Houston Judge Issued Order To Report The Parties Jointly The Status Of The Case On 12Th April, 2019

A litigation was pending for the claim of USD. 40 Million since August 2015 in the Southern District Court, Houston (USA). All evidences have since been completed on the 18th March, 2019, Southern District Court ordered to report the status by the parties on 12th April, 2019 and courts review conference is set for 15th April 2019 for USD. 40 Million claim.

2.Once these USD. 40 Million is obtained, your company will start all its units including the newer guar gum products including that of guar proteins- a vegetal protein for oral use. Please see next announcement in the weeks ahead.

1.That the company has received export orders and domestic orders on 22nd March 2019 for various guar gum food grade products for the above cited subject uses aggregating to Rs. 176.84 Crore. These products are newer guar gum products developed by the company during 2016-2017 and now these products have been accepted in the international market with wide acclaim. Some more orders are under the process of finalization. 2.These orders would be executed during Quarter-1 and Quarter-2 during FY 2020. The shareholders of the company are advised accordingly.