I don’t think they have any receivable issues. Operating cash flow seems to be mostly affected by increase in inventory and due to slight increase in receivables.
I don’t think its an issue as sales has significantly increased over the years requiring higher inventories. Inventory days is in fact much better than for KRBL ( they age basmati rice). Inventory is usually higher during annual balance sheet date as bulk of the basmati procurement happens in Q3 and Q4. So I think looking into the half year balance sheet will give us a better picture of the inventory. Inventory is getting converted to cash in the Sept balance sheet.
The Unaudited Sept 22 balance sheet shows increase in Other bank balance and corresponding reduction in inventory over March’22.
This chart shows the company’s fluctuation in cash equivalents every half year.
Source: Investor presentation Q323
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