Take a look at the receivables for FY23. They have significantly increased, resulting in a negative operating cash flow. During the conference call, management confirmed that there is one customer who places substantial orders with the company, but the payment from that customer is overdue. Although the company has a long-standing relationship with this customer, and they continue to place orders, the delayed payment poses challenges to the company’s working capital cycle and operating cash flow. Additionally, despite the funds raised from the IPO, the company’s borrowing has also increased (although in absolute terms it’s not very high). I am not fond of this situation as it indicates a weak financial management approach. I would prefer if the company starts collecting payments from this customer on time.
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