Ion Exchange (India) Limited - A Thread

1/ About the Company
Ion Exchange (India) is engaged in a wide range of solutions across the water cycle from pre-treatment to process water treatment, waste water treatment, recycle, zero liquid discharge, sewage treatment, packaged drinking water, sea water desalination.

2/ Operational Guide
The company operated under three business segments; Engineering segment, Chemicals segment & Consumer Products. Based in Mumbai, the company has seven manufacturing & assembly facilities across India, and one each in Bangladesh, UAE, Bahrain and Indonesia.

3A/ Financial Performance
In FY21:
The overall Sales fell by 2%
6% decline in chemicals
14% fall in consumer products
Engineering had a 0.2% growth
Even after fall in Sales Operating Profits grew by almost 50% YoY (Margin 13.96%)
Net Profit Margin of 9.89%

3B/ Financial Performance
The margins improved based on increased degree of utilization of the clinical setup & improved efficiencies from increased scale of operations
There was favorable movement in raw material prices
The long-term debt reduced from INR 18.8 Cr. to INR 8 Cr

#Didyouknow

What is REIT?
We know mutual funds, right?
Where money is pooled is pooled from investors and in return are offered mutual funds units.
Similarly, instead of shares of public companies, REIT units represent ownership of real estate assets.
(Thread)

#reit #realestate

1)Real Estate Investment Trust (REIT) is a tax-efficient vehicle that owns a portfolio of income-generating real estate assets. It is created by a sponsor, who transfers ownership of assets to the trust in exchange for its units.

2)SEBI regulations require REITs to payout 90% of distributable cashflows to unitholders, and must have at least 80% of their assets to be completed & income generating, which decreases the execution risk.

3)The sponsor is obligated to hold certain units of the REIT & remaining are issued to investors in the form of an IPO.
Once listed, they serve as permanent vehicle to raise debt and equity in the capital markets to acquire new assets & grow.

4)Certain parameters to evaluate REITs:
Weighted Average Lease Expiry (WALE): The biggest risk of running a commercial property is vacancy. WALE is used to calculate the time left for property to go vacant. The higher the better.