Results were not reported for last year H1. Last year results are for the full year 2022-23, which was 72 crores of sales. Let’s assume that last year H1 sales were half of 72 crore which comes out to be 36 crores.
Now the situation looks like this:
Sales increased from 36 to 48 crores(33% growth)
In the cash flow statement inventory increased by 3 crores and trade receivables by 7 crores. The cash position in balance sheet is so thin that it appears that the business is facing cash flow problems.
However company is in high growth phase and also doin capex accordingly. They are guiding for 35-40% growth and the numbers are also supporting this guidance. In such cases it’s quite normal to face increase in inventories and receivables which is in line with the sales growth.
Company has raised fresh capital of 16 crores in IPO. The other current asset column in balance sheet shows an amount of 10 crores. There are no details available. It can be some cash equivalent or marketable security which will enhance their cash position. We need to find out.
In such a small company in early phases of growth the important factor is scalability, which the company appears to be on track. Rest of the numbers can improve going forward.
Disclosure: invested.
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