COGS has gone up by 7%!
Rather I think this result has to do with the change in product mix. Look at the volume and value for the 2 segments in Q1FY24 and Q1FY25. A drop in volume of 5% (57% to 52%) has resulted in drop in value of 2% (53% to 51%). This indicates bimetals is a higher margin division and change in product mix is affecting the margins. Can this be the right conclusion (Bimetal having higher margin than Shunts)? It would be great if this is corroborated elsewhere.
In any case, looking forward to the concall for management insights beyond this press release commentary.
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