Ok - thanks - i stand corrected. if the company is sourcing its quartz from a third party, it begs even more questions.
look at ceaser stone's RM cost it is 50% of sales at a realization that is at least 2-3 x of pokarna's as per this thread.
Pokarna claims gross margins of 70% incrementally - that means their RM cost has to be 20-25 % of their sales - which by itself is only 50% of that of caeserstone's in terms of yield. So, that begs the question - if chettinad being a rational seller can sell anywhere in the world, why would they sell to pokarna at a lower price when cesaer stone claims to be sourcing from india too and chettinad might as well sell to them for a logically higher price.
And in any case they had this bretton stone agremeent from 2010, why is it that only after april 2014, their sales soared ?
And for such an important subsidiary, why are detailed financials not given - what about environmental clearances, PCB clearances etc. on the subsidiary ? Also, why take a FCCB and loan it to the subsidiary in turn - why could'nt the subsidiary itself have raised money on its own with corporate guarantee ? Was it to prevent detailed disclosure ? So many RPT all over between pokarna and PES
The first question would be to understand the entire supply chain and how they are managing all these clearances in the subsidiary and what has changed post FY 2014. I pass no judgements - when facts change I change my mind.