Hi Anirudh
I do not see the unsecured portion of the receivables to be an issue. The
movement in Receivable Days and the Cash Conversion Cycle is something
that I would spend more time on. If the reported numbers are to be
believed, receivable days have slightly reduced to just under 4 months.
Also, CCC has gone down from 96 days to 58 days, a pleasing change.
However, despite being a very small portion, they should have provided for
the receivables which are more than 6 months old. It is less than 3crore,
so it should no affect us as much. It is a small irritant.
I am concerned about interest costs though. They seem higher with “other
borrowing costs” contributing to 15cr and bank charges being 5% of the
loans drawn.
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