In the recent concall, someone asked this question and the management answered thus:
(I’m copy pasting the mgmt answer in verbatim)
"Thanks, Pradeep, for your question. Our asset turn was extremely high because the mergers and acquisitions that the company has made in the recent past have been on book value. If you look at the gross block this year, it has increased from around INR90 crores to around INR150 crores.
So this is getting our asset turned down to 14 and 15 from levels of 18 and 19 before.
So this is a gradual shift which will happen over time. And then – as assets will sweat as well, you see the number coming properly as well. This year, as well, we are expecting to deploy close to INR150 crores - INR200 crores on CapEx. So, hence, our gross block will come down – our asset turn will come down further to 12, 13 numbers, which will be across – similar across the industry. It’s just that previously, whatever asset purchase we did for the Mandi plant and the merger we did was around book value. So hence, the asset turn seems bigger right now.‘’
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