Nobody knows the future, thus any statement about the future is speculation and at best a reasonable guess. But, I dont think anything was hidden by the management.
Quoting from Concall- Page 2
“This all achievement is despite of the challenges posed by a volatile global environment, which includes fears of war, also fears of recession, and also supply chain disruptions that we have seen over last year. And I believe that our business fundamentals are robust and strong, positioning us on trajectory of sustainable growth. Last year presented its fair share of challenges, I must say, primarily revolving around supply chain issues. In fact, there are two things I would like to highlight related to supply chain.
Firstly, there were widespread shortages about semiconductor products. You all must have heard about those shortages going around over the globe. And secondly, the supply chain was inconsistent. That means that when we require the material, sometimes the sea freight.”
They have specifically said that in the year, they prioratised corporate customes. Quoting,
“One is the shortages or lower availability of material, and second is pricing. So in response to shortages, what we have done is prioritize our sales to our corporate customers, because we know that these people are into some production activities. And also these corporate customers are generally high value per order customers for us. So we have prioritized those customers during the times of shortages. And as you can see in the numbers, this has resulted into higher number of corporate orders for us during last year.
And we believe that this focus on corporate customers last year will help us in coming time to grow even higher. Secondly, there was an issue of pricing, because of the shortages and intermittent supply, the prices were going up and down, mostly up. What we have done is we have absorbed some of the price jump into our margins and passed some of the prices to the customers. This was also a strategic decision driven by that the shortages and price jumps are short term, but the customers are long run.”
Thus, saying that management hide something may not be a correct inference; particularly for a company coming first time in a concall. But we all are free to draw our own inferences.
[Disclosure- Invested and biased]
| Subscribe To Our Free Newsletter |
