Siddhika Coating Limited- A Paint Company

Annual report of the company is out. Keep takeaways-

1. The company is expecting that going forward the clients will start looking for more organized service providers, i.e. paint applicators.
2. Debtor days have improved from 64 to 36 days.
3. Company’s working capital requirements have reduced from 117 days to 63 days.
4. Inventory turnover ratio has been improved from 3.35 from 2.1.
5. Company margin has improved, net profit margin is higher than 10%.
6. Quoting management-
   “Demand for SKK paints & our services are still good. We look forward to business moving back to normal in construction industry. Recent optimism in real estate sector adds to our confidence on growth. We also expect demand to pick up in our segments of façade renovation once 100% work from office is back on track.”
   The AR is available on NSE site.
   [Disclosure- Invested and biased]