Press release of Q1FY24 provides a reasonable ground to answer the above questions.
I understand that the business has no power to dictate either selling price of finished goods or cost price of raw materials for Grain Processing and Ethanol Mfg. Divisions. Although Ethanol Division is expected to become the major contributor to the overall revenue, it has 2 additional constraints:
- No concrete source of raw material. Recently, FCI stopped the supply of broken rice even for the old plant (60KLPD). If not addressed soon, profitability will be further strained as they have recently capitalized 500 KLPD plant.
- Profits ought to be managed with in the regulatory pricing of both the finished goods and raw materials.
Disc- No position.
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