Thanks Sri Krishna. In Q1 capacity utilization was around 60-65% so I am a little surprised now with Q2 results where the utilization was higher. Is it solely due to lower realizations like other boarders have mentioned??
Secondly, as per debt covenants they were not allowed to expand capacity. They are not out of CDR yet. How is it they are going for expansion now? Also I believe the cycle of expansion for south Indian cement companies was over. Issuing NCDs for the same can disturb the balance sheet and demand/production balance. Now these cement companies in the south work as a cartel. How will this expansion impact it?
Can fellow boarders help me understand this please? Am I missing out on something? TIA
Disc: Invested
| Subscribe To Our Free Newsletter |
