NCL #s looked decent on the first look. I am waiting for MD’s comments on plant maintenance shutdown. My understanding is that the maintenance happened in Q1. On the contrary, if it had happened in Q2, these are excellent #s. Need clarity here.
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Boards division has performed very nicely. EBIT : 7cr vs 5cr last quarter. This is operating at ~35% EBITDA margins. This is a positive development though minor.
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Raising 320cr through NCDs could be looked upon as positive depending on the borrowing cost. Their current borrowing cost stands @ 12%.
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I believe the utilization levels were fairly decent this quarter(assuming plant maintenance happened this quarter). If the company was going through sub-60% levels for the 2nd quarter, the management wouldn’t have confidently come out asking for capital for expansion.
Waiting for MD’s comments on maintenance shutdown.
Thanks,
Ravi S
Disc – Invested from lower levels.
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