There is no doubt that new products will start with lower margins and improve over an year or two. The management had mentioned this in almost all the con calls. I was curious if sale of new products have already started in Q1 itself as the RM inflation was expected to increase higher in Q1 (Apr to Jun) due to Ukraine war and etc. Crude prices have started falling, so RM cost pressure should subside over the next few quarters, hence the important number that I am watching is topline and capex. As long as they are able to increase revenue regularly, they can get back to better margins (or absolute profits in worst case as long as revenue keeps increasing).
Competition is there for every company. So far they have done well and this is one area to keep watching regularly.
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