Update based on Nov 2023 con-call
- Revenue lower because of sluggish Europe, lower costs of raw materials.
- Equal profits even with lower revenues because of lower raw materials.
- Keep in mind, 50% of the sales are outside of India
- Contracts a are 3,6 and 12-month basis so if raw material was purchased at higher prices, not all
of it can easily be passed through – basically sales prices is pre-negotiated so there is inventory
risk. - Apparently, Chinese competition has had approvals in certain areas and competition is reducing
margins. - On a half-yearly basis compared to last year freight has come down quite substantially from
around INR26.5 crores to INR9.5 crores.
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