Despite a positive sentiment on ground, Vellayan Subbiah, MD, Cholamandalam Investment and Finance Company sees a minor pick up in heavy commercial vehicles (HCVs) in terms of fleet buyers and almost no pick up in light commercial vehicles (LCVs).
The larger issue persists to be real cash flow not improving to translate further into sustained sales due to lack of spending ability, says Subbiah in an interview with CNBC-TV18's Anuj Singhal and Ekta Batra.
The tractor-financing segment too has been slightly hit by monsoon deficit.
However, a flat to marginally positive growth could be seen in the sector this year, he adds.
Below is the verbatim transcript of the interview:
Q: You have seen some pick up in sales of commercial vehicles. Do you get a sense that the financial activity is also picking up and if you could give us some data on that?
A: We are seeing very slight pick up in HCVs but if you take the commercial vehicle segment and break it down into HCVs, LCVs and smalls; the LCVs and small commercial vehicles are still not seeing any pick up. From financial perspective, definitely they have been worse off than the past. HCVs especially in terms of fleet buyers are beginning to see some pick up but I would still say that it's too early to call it a specific trend because we have not seen enough sustained information to support it.
Q: In terms of enquiries, do you get a sense that maybe the next quarter would be better based on the anecdotal evidence that over the last two-three months, we have seen clear pick up in sentiment as well?
A: Yes, definitely sentiment is much more positive, so all the customers we meet the sentiment is much more positive. The bigger issue is that real cash flows has not improved in the hands of specially the smaller commercial vehicle owners which are predominantly the commercial vehicle owners we deal with and so we have not seen any real cash flow improvement in their hands which is what is required to translate into more sustained sales.
Q: Your domestic medium and heavy commercial vehicles (MHCV) segment was down 25 percent in FY14 in terms of total financing. Do you think that it will decline in FY15 or will it be flat or a marginal growth? Just to get a sense in terms of what the ground reality is?
A: If you look at the trend, last year has been bad so given the fact that we have not had two good years in MHCV now, last two years have been bad. You will have some base effect advantage that would say that this year is going to be flat to slightly up. We haven't seen any trends in the lights and smalls yet but if you take MHCV yes, I would say flat to slightly up compared to last year.
Q: How is financing towards the tractor segment doing because we understand that it is around 10 percent of your disbursements but we did have some data that came out from Escorts which was not that encouraging in terms of tractor sale that they recorded. What is the on ground reality in terms of financing for tractor sales, how much has a deficient monsoon impacted it?
A: Tractor is definitely hit by the monsoons. There are two effects from the monsoons – one, majority of India still continues to be rain fed, so its that effect but also the monsoon significantly affect the sentiment of the farmers and we have seen that larger manufacturers have slowed down a bit and we have seen muted tone as far as tractors are concerned. We are still seeing growth predominantly because we started off with a small market share but overall the industry is not going to see much growth this year.
Cholamandalam stock price
On September 02, 2014, at 14:14 hrs Cholamandalam Investment and Finance Company was quoting at Rs 411.95, up Rs 6.55, or 1.62 percent. The 52-week high of the share was Rs 459.75 and the 52-week low was Rs 209.05.
The company's trailing 12-month (TTM) EPS was at Rs 25.50 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 16.15. The latest book value of the company is Rs 159.90 per share. At current value, the price-to-book value of the company is 2.58.
Anda sedang membaca artikel tentang
Tractor financing slightly hit by monsoon deficit: Chola
Dengan url
https://kesehatanda.blogspot.com/2014/09/tractor-financing-slightly-hit-by.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Tractor financing slightly hit by monsoon deficit: Chola
namun jangan lupa untuk meletakkan link
Tractor financing slightly hit by monsoon deficit: Chola
sebagai sumbernya
0 komentar:
Posting Komentar