Recently management has decided to do the Capex and the management has said that because of the incremental capex, year end utilization would be around 82-85%. They are expecting cash flow of 150-200 cr this year and their increase in debt would be around 250 cr this year (380 cr Capex), which will help them generating 220-250cr of cash flows next year. These all assumptions would be valid if growth in Indian economy accelerates.
One key thing we need to see is the amount of Capex company does in future because leasing businesses takes some time for break-even. So even if company does break-even in say 3 years (I need to check from balance sheet) they have to manage their capex such that they don’t fall in the window of t-3 years where t is the year of slowdown.
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