As far as i know, QIP money is utilized only to extent of Rs. 16 crores and that too for repayment of debt. Rest all QIP money is parked in liquid funds. I had been to AGM and had personal discussion with CEO, QIP funds would be used for
1. launch of new products like “Indian Terrain Boy”, they are planning to also start selling of other men’s accessories like “Shoes”. So funds will be used for design, product development etc.
2. Advertisement campaigns, they soon are coming up with TV ads.
3. Repayment of long term debt which they have already done and now long term debt is NIL.
On business front, they are confident of increasing their top line by 12-15% and EBIDTA margin by 150-200 bps. That should give decent growth of 25-30% in EBIDTA and added with reduction in long term interest cost of nearly 1.5-2 crores should help achieve PAT increase of 35-40%.
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