Yes, you are correct in that. They have fixed realizations per litre of chemicals they sell. The contract protects them from forex fluctuation and crude price/raw material price impact. Infact, if you think about it the margins will slightly expand when crude price go down and vice versa (which is exactly what has happened in last few quarters).
See Pg. 7 of this note to verify about the contract terms >> http://www.hdfcsec.com/Research/ResearchDetails.aspx?report_id=3008142
Only problem is disclosure. It is difficult to determine if the volume has gone up or down since they don’t keep concalls since last 1 year, nor they release any presentation. Only annual report will clarify that hopefully.
On board point, I think this happens with all the companies. Board members are generally from other firms and sometimes totally different industry (Eg. Mr. KV Kamath from ICICI was board member of Infosys). And such closely held companies tend to nominate board members from their family members (which is not so positive but can’t avoid with such firms).
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