After doing some more research I would like to add the expansion in margins has been account of both pricing power (which flows to the bottom line) and their fixed cots being spread over a larger volume. The second factor illustrates the operating leverage that the business enjoys.
As you can see from the table below, raw material cost as a % of sales has declined marginally. But SG&A (advertising, repairs, rent, etc.) and depreciation have declined as well. Infact they have declined more significantly.
I would also like to add that DB does actually have a presence in Uttarkhand. They still don’t have a presence in UP however, which I still find very puzzling.
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