I was reading one of recent concall: their business model consist of 73% exports which accounts for higher margin and for exports generally the working capital cycle is high(since the overall manufacturing process is higher).
“I will also add what JJ said. Look, Devyansh to tell you very clearly when export
is growing, when our business is growing, Obviously working capital will
grow. So there is nothing to shy away from that WC will grow because, you
know, l our work here because if we are growing every year, 20 to 25 % and
30% obviously a major growth is coming from exports market. Obviously
export receivables, nothing is going to change for me. Because if shipping time
is 70 days, shipping time is 70 days. You will can’t really do much. Eventually
customer has to pay its own receivable time”
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