Gross margins should stabilize somewhere around 6-10%. The promoter previously mentioned in concall or investor meet (I dont remember) that they get raw materials and processing at 80 and sell it at 92 (incl. 5% Gst).
India is and always will be a pocket friendly country first irrespective of environmental concerns and so Biodiesel will never surpass diesel rates.
Kotyark’s venturing into further processing of Glycerin can make its bottom line a little better.
At the end of the day the main business is linked with commodity and upcoming elections’ effect (2024) could reduce prices of diesel (cuts in taxes) which can significantly hamper its margins or can lead into losses. If they could diversify into geographies with very high taxes on diesel, they could expand their bottomline since they could have a bigger say on sales level.
The merger (with group company) will also help their topline.
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