Dec Qtr numbers have been great with all time high quarterly sales of 182 crs, but what stood out even more was that the operating margins have more than doubled to 25%. The last couple of years have seen these margins more in the vicinity of 10-12%. We need to ascertain what has brought about the increase in sales from the earlier quarterly run rate of 70-80 crs to the current 160-180 crs., & more importantly if this is sustainable. We also need to understand what kind of margins are sustainable.
The mgt had indicated in the last AR that the current year 22-23 would be a good one, so some credit is due to them as well. It has also been updating the exchanges about larges & new meaningful orders that the Co. has been receiving from Russia, UAE etc., so maybe the increasing sales is not such a big surprise. There is a general perception about mgt. quality, but it would help if there are any specific instances of the mgt. short changing the minority shareholders. As mentioned by @nirvana_laha in the above post, the other marketing co. where the promoters hold a much higher stake is not making too much money. Well, times sure are changing & in these times of comparing market cap to determines who is bigger n better, it pays to be honest!
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