True that, but sometimes synergies are not immediately apparent to outsiders. The biggest positive I see is in the long run, elimination of rent from expenditure. In the bigger scheme of things, 16 crores is not a huge number. If it is partly funded with debt, it should not take more than a year or two to pay it off with internal accruals, especially with the improved performance.
Q3 should be better than Q3 of last year purely due to diwali falling in Q3 as opposed to Q2 last year. So a few bumper quarters and the company should have sufficient funds to comfortably acquire the warehouse and not impact performance.
Can anyone highlight if the purchasing of warehousing would affect the working capital/inventory scenario? I do not think so, the operations will go on as before, only ownership will change. Still, asking if anyone has any insights in such a situation.
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