I have three questions with respect to their latest concall. They are as follows:
a) Inconsistent margins: The management mentioned in the latest conference call that they are entering more regulated markets like brazil and Mexico for better mix at the same time they also said that product mix is one of the leading factors in their ebitda levels. If we remove one of expenses. How much of a seasonality is there in the margins , what role is the product mix playing and what is the sustainable margins that they aim to deliver over a long term profile?
b)The new products that they are launching and have file patents for: how long does it in general take for patents and approvals like these to get approved? How certain is the management that they will get these approvals in the first place. Also company has already started capex on this, still there is no fixed timeline on the commercialization. The management says at least three years. Can it exceed that??
c)They said that 99% of the companies in china are failing to file for regulations for brazil. Why is that? and what moat do they have over the Chinese players as far as regulatory approvals are concerned?
have been tracking this company for few quarters, would love to understand these points from someone who has deep dived!
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