Lower sales and lower margins could be due to delayed shipments as well as some impact of red sea issue. Considering the product quality and customer profile, I would not be too worried about the P&L (except interest cost)
More than margins, rising debt level is the bigger issue here. Receivables have risen faster than sales in this quarter. High inventory levels (being 75% exports company) along with increasing capex makes this a highly capital intensive company. Promoters reluctance to raise equity are making matters worse for the company. Any steps to reduce debt burden can be positive trigger for sustainable future growth
Discl - invested for last 3 years and forms part of my core PF. Hence biased. Transactions in last 2 weeks
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