In Q3FY24, they said since they use air route for their international deliveries, they do not expect much impact except the raw materials which comes via sea. However, they did not anticipate air slots will also be filled due to red sea issues. However, the main concern for me is sudden revenue drop considering they were still maintaining mid teen growth till Q2FY24. Now when they again guide for mid teen growth in FY25 we do not know how it will pan out. GLS management is conservative which is good but drop of almost 10% in revenue from the guided level in 2 quarters is concerning.
Also, there has to be clarity of accounting policy of Nirma as it impacted almost 45cr sales in Q4. Nirma management has also not addressed the takeover so far which is surprising. Reason may be GLS will be run as an independent entity which they mentioned in Q4 concall as well and its good. However, would like to know Nirma’s rationale in GLS takeover and what are their future plans.
Disc – Invested from lower levels.
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