EBITDA margins are actually 15% and not 18 because there is an other income component of 5 Crs in the sales. Dip in margins doesn’t look good. Management should provide numbers on the volume growth because the topline fluctuates depending on the cotton/polyester prices. PAT margin has dipped slightly because of more depreciation post capex. There has been an upgrade in the ratings and the rating report stated that the co is inline to achieve a topline of 600 Crs for this year. This is ~8% increment on last year’s number. Last year’s PAT margins were slightly more than 10% but this year it might be less than 9.5% because of more depreciation. In that case the bottom line will more or less stay same as last year. Just 8% growth for a growing company doesn’t sit well. Last year’s growth was also just 10% . I hope these projections are conservative and we see atleast 15-20% growth on YoY basis from Q2 onwards. EBITDA Margins should improve significantly with more utilisation of new capacity. Let’s see how this story pans out and when can they double the sales and hit 1000 Cr mark on the topline with atleast 10% PAT margins.
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