In FY15, the company wasn’t hedging it’s Positions! It started doing this recently and that’s what changed fundamentally since the last many years.
This qtr also margins were good even after such a steep fall in commodity Prices last quarter.
Prices fell by 10-12% and yet, margins were maintained showing that their strategy is Paying off.
Pondy oxide in it’s lead business does an EBITDA margin of 6% while Gravita does a 10% EBITDA for it’s lead business earning close to double the margin of it’s competitor which is no small feat.
Shows the kind of scale ( Pan India + global Presence ) and the competitive advantage they have built in their Procurement of scrap and they will continue to do this because the recycling segment itself has a huge opportunity and the company still is very small compared to the size and it’s very focussed on expanding to further deepen this advantage!
Subscribe To Our Free Newsletter |