Yes Gurjot, there has been a decline in EBITDA QoQ however increase in other income and drastic decrease in tax expense and finance costs. Need to find out the reasons for this.

As per company notes: "Other income for the quarter includes income of rs 28.13 million recognised on purchase of subordinated loan in subsidiary Pylania S.A. by another subsidiary Kamla International Holdings AG from third party at a discounted price"

The Ethos business is showing traction and improvement.

Disc- Invested

Can't agree more. Will summarize it in a different way for the benefit of future readers

1. DCF / EVA / Any valuation measure is a scientific art. It is neither science nor art.
2. No investor gets rewarded for estimating the value accurately. It is not like predicting scores.
3. You get rewarded / penalized for the Go-No Go decision at a particular price.
4. You get rewarded / penalized equally with a guy who values differently (read different assumptions and projections) the same stock for the same duration.
5. The value you estimate just gives a rough idea of the margin of safety from the price. Nothing more than that.

@varadharajanr thanks for replying so promptly.

So if I understand this correctly, this is like consignment accounting where they give inventory to their consignors (sub-franchisees) and recognise them as receivables in lieu of goods sold (with a mark up of say 50%)? Please correct me if I am mistaken. Additionally if I am correct, could you shed some light on the generic arrangement that they have with their consignors (I understand they probably vary brand to brand) on whether the goods sold can be returned and if so under what terms and conditions - as this might impact returns over the long term in case of poor seasons.

Thanks again for the prompt reply

Pokarna and Asian Granito play in different segments/geographies of market due to technology, so its not apples to apples.

@kanvgarg123 Pokarna uses Breton Stone technology which is the best in the world and allows it to compete in US market (high margin) with the biggest names (at least it can try).

The monopoly questions needs to be looked differently. Pokarna is the only player in India with Breton Stone tech. But it sells in export markets where it competes with players with Breton Stone tech from other companies. There is good discussion in this thread regarding the geographic competitive advantages with risks that Pokarna might be leveraging.

@jatin Pokarna does not need to compete in India (lower margins) as it can sell in high margin export market (esp US). Asian Granito can't in that high margin US export segment due to quality difference (refer technology difference above)