Krishca has reported good results with ~50cr revenues and 5.6cr PAT in H1. H2 will be significantly better than H1 because:

1/ New Capex coming in Dec’2023 for highly specialized strappings
2/ Packing Contracts Orders start executing

Margins also in H2 should be better vs H1 as value added products portion will increase going forward.

But the results formatting done by the company is not up to mark. They showed FY23 full numbers under half year. They also didn’t do H1FY24 vs H1FY23 yoy comparison which would have shown the correct picture.

Thanks

Seems something amiss here. Q1 24 was just 13 %. I don’t think Q2 is going to be any different looking at their Q1 Conference call. Some uptick expected in Q3 and Q4. But 40 % in FY 24 seems almost unpractical. They were reluctant to give any guidance during conference call.

I don’t think this guidance was there in investor presentation when published in August 23.

Any body knows more about it?. Likely to get cleared in Q2 con call.

Latest rating update from India rating and research

The most interesting set of information for me is –

• Capex to Support Incremental Scale: STL is incurring a INR5,490-million capex over FY22-FY24 (FY23: INR2,566 million; FY22: INR2,970 million) towards increasing products to support overall increase in its revenue.

• The company’s all projects put together have the potential to generate incremental revenue of INR20,000 million-25,000 million, thus increasing the scale of operations significantly; although the ramp-up would be gradual.

• This implies 4X asset turnover for expansion

• Ind-Ra expects STL’s revenue to remain INR32,000 million-35,000 million in FY24, To clock the 25% sales growth target that the management have mentioned – FY24 turnover should exceed the above rating agency’s estimate to clock about INR36,000 million revenue

Disc-Invested in small quantity. Transactions in past month

I don’t think the result have anything to do with the correction. As stock corrected even before the result got published.