As per management this is how their contract is they will receive this payment only after the project closure. Adjusting for all of this there is INR 8cr of receivables which is dew for more than a year.
As per management historically they have never written off receivables. What I understand is there is always going to be delay in payment when your are dealing with government. This is the case in each and every industry what we have to see is weather there will be write off or not.
Please Note: I am still in the process of understanding this industry and above is just a copy paste form concall . I am going through their DHRP, 2 AR, All quarterly report ( 10 ), credit rating report and few industry report.
For concall what I understand is they don’t have a linear growth in revenue but have a step up or a lump sum growth so they are confident of 20% to 25% over 4yrs to 5yrs.
Their way of dealing with government looks same as how krsnaa and currently looks like it is at good valuation. Will be coming with a detailed report here.
Disclosure – No investment
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