Notes from concall:
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Regards the penalty : Non reoccurring. They have provisioned for it since they did not want to fight the client in court etc since the client continued to give them good business. So the loss hasn’t happened yet… Will happen soon and hence provision made. Hence why tehy couldn’t tell us about it back in December
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USA business: I think they misunderstood the question regards losses a bit. But basically outside India subsidiaries are project oriented. So can’t just look at one quarter in isolation. USA will be flat next quarter too but not as bad as this.
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Will q3 be the worst quarter? : With prices of cng cooling down they expect an immediate turnaround. Could be another price decrease in march/April but a lot depends on global macros and government
Misc notes:
Long term cng prospects are good and infra is continuing to be developed even with cng prices high.
When asked about promoter buying at this price they chose not to comment.
Cng and industrial were at 50 percent each contribution this quarter.
With Capex done and with utilisation around 60 there is room for growth when macros improves.
End of concall(a very brief 26 mins).
Overall, I’m just glad management isn’t hiding. Q4 should be a marginally better quarter. As cng prices cool we should see a huge improvement overall.
Disc: Invested around these levels. Increased my stake today when management came out of hiding. Not a sebi advisor
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