Current numbers look good but I had few questions on margins and working capital front:
1) If we see current numbers the margin expansion has been mainly due to increase in gross margins and for that management has a say that raw material prices have gone down but if we see COGS breakup cost of material consumed has gone down marginally about 0.6% Y-o-Y H1 basis and 0.3% Y-o-Y quarterly basis major impact has been majorly due to very high negative changes in inventories decreasing COGS so I’m unable to get that since management has a say that current margins are going to be stable so, wanted better colour on this
Is there anything I’m missing would appreciate your views
2) Another thing is since company is shifting more and more towards branded sales and B2C segment which requires higher inventories generally and also current H1 inventory as a % of revenue is up 4% has management provided any guidance on this side
3) and last thing on debtor days, current H1 debtor as a % has increased by 9% and management is saying it is on a declining trend when an investor brought up this during concall their say was that in different geographies there are different credit periods but it is on declining trend. I was unable to understand this since both the comments are bit contradictory to each other am I missing out on something over here what are your all comments on this
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