True, but energy prices and Caustic Soda prices have also fallen massively. Both of these are a very big part of the company’s costs. Caustic Soda prices have nearly halved. Additionally, their new pulp mill will be fully operational from next quarter onwards. This would end their massive capex program and free cash flow from hereon, leading to even more debt reduction.
They are also setting up a 2 MW Captive solar plant. This should aid in bringing down their power costs. Lastly, in the concall the management mentioned that they had to employ additional 500 people for the new plants and thus there was an increase in their employee costs, this is why employee cost as a % of revenue was very higher this time; this should normalize after the plants reach optimal utilization.
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