How Amazon makes money?

[ Amazon's business model decoded😃]

@dmuthuk @unseenvalue @FI_InvestIndia @Vivek_Investor @drprashantmish6 @caniravkaria

🧵👇

1/ A person named Jeffery earns 100 dollars per month and has an expenditure of 120 dollars monthly. He has a very good reputation in the society. So, he takes a loan of 1k dollars for a month and this 1k cash is invested in new business ventures.

2/ For the next month, he pays his liability back by taking a loan from another person for 1.5k dollars. The loan of 1k is paid back and the remaining 500 dollars are invested in another business venture.

3/ By the end of the month, he earns 150 dollars through his old and new business ventures but has a total expenditure of 200 dollars. He again is in a deficit of 50 dollars. To pay back his 1.5k dollar loan, he takes a loan for 2k dollars

4/ This cycle goes on and on. Jeffery keeps on taking bigger loans to repay the previous loan and the leftover extra loan is invested in bigger ventures which produce more expense than income.

APL Apollo conducted their earnings con-call today at 2:00 pm

"Vision of capacity of 4 Million Tone till 2025"

@hiddengemsindia @gvkreddi

Here are the key highlights 😀👇

Business Updates:

• Net Working Capital Remains under 10 days which is best in the building material
• Continue expanding rural region.
• Added 15 new distributors.
• Value added products contributed 50-60% of the topline.

Revenue breakup

• EBIDTA Margin Improvement: This was mainly because of cost structarize and better operational

• Working Capital Cycle as per mgmt should remain sustainable

• Blue Ocean: Company owns 100% subsidiary which contributes nothing but own property where corporate office is there

Improvement in Net Selling Realization:
• With expanding capacities at 2.6Million Tones and utlization of 75%, scalability has been affected.
• While the prices of steel has gone by by around 35%, due to shortage of steel.

• Apl Apollo being the dominant player past connection with steel companies worked well.
• Steel tubes supply from China is shrinking.
• Hence the discounting factor while selling the products has went away.

Solara Active Pharma Science con call was today at 3:30 PM.

@Gautam__Baid @unseenvalue @drprashantmish6 @rdkriplani

Here are the key takeaways of the call. 👇🧵

Business Updates:

• Speed of filing products has been increased. Filed 5 new DMFs – 3 in US and 2 in EU
• Currently ramping up the facility in VIZAG with strong customer attraction, and will be commercialized as planned in Q3
• VIZAG EBIDTA growth guidance changed to 40%+ YoY

• Growth Driver: Broad based growth in other products and Vizag.

• PLI: Company has filed Mysore for PLI scheme for 1 molecule.

• Technology: Company is about to complete its 2 out of 3 technology, which will enhance efficiency for Solara.

Demand in some of sectors is moderated:
• Mgmt expected moderation in demand, hence company has taken necessary steps for those products.

Gross Margins:
• It was down a bit due to product mix however.

Fiscal 2022:
• Solara has grown in regulated market space.
• Vizag will kick in. CRAMS will support tailwind.
• Most of the CRAMS is commercial API.

• Most of the product is expected to be stable both in term of demand and price in the coming few quarter

Cipla concall was today at 10:40 pm (late night)

Here are the key takeaways 😃

@unseenvalue @darshanvmehta1 @AlgoBoffin @iramneek

Introduction

- Company being the first one to launch Remdesivir and the whole portfolio for covid 19

- Company is no.2 in lung leadership. Will try to unlock the complex generics in US.

- Growing faster than the average market growth.

- Trying to bring respiratory technology in China and in Brazil.
- There is a fair amount of unlocking through digitalization.
- ESG to improve in future. Becoming carbon neutral and water neutral.

US business
- Were able to add

- would be doubling the revenue in US.

- The pipeline is nicely diversified , now the products are diversified into respiratory + injectable around 30%

Indian market: One india strategy
- To cosumerize the business.

- Generic business is no.1 in india.

- Brand is moving from generic business to consumer business.

- Goal is to keep beating market growth by expanding the depth in portfolio.