Latest rating update from India rating and research
The most interesting set of information for me is –
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Capex to Support Incremental Scale: STL is incurring a INR5,490-million capex over FY22-FY24 (FY23: INR2,566 million; FY22: INR2,970 million) towards increasing products to support overall increase in its revenue.
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The company’s all projects put together have the potential to generate incremental revenue of INR20,000 million-25,000 million, thus increasing the scale of operations significantly; although the ramp-up would be gradual.
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This implies 4X asset turnover for expansion
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Ind-Ra expects STL’s revenue to remain INR32,000 million-35,000 million in FY24, To clock the 25% sales growth target that the management have mentioned – FY24 turnover should exceed the above rating agency’s estimate to clock about INR36,000 million revenue
Disc-Invested in small quantity. Transactions in past month
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