Disappointing results and concall . Management doesn’t seem to understand the importance of guidance and associated perception of not meeting their own guidance repeatedly despite full confidence in earlier concalls. E.g. crossing 100 Cr ebitda in FY24, on/off frequent one off expenses , massive confusion on the interest costs . If they were expecting a tepid Q1/Q2, they should have laid out that upfront instead of being 100% confident of crossing 400 Cr in Fy25. Market will neither reward nor rerate this stock if these things keep happening. They should have expected questions from investors and analysts (e.g. jump in other expenses QoQ/YoY, interest costs ) and should have laid out the explanation in the ppt itself instead of getting repeated questions on con call and wasting time. Unfortunately the con call became a clarification exercise instead of being forward looking , frustrating for everyone!
IMHO, investor communication should be made more precise and clear and avoid multiple confusion . They can spell out all the basics in the Investor presentation which should clarify all questions which will limit follow up questions on call.
Q2 results will set the tone for FY25, but the 400 cr FY25 guidance seems too far fetched, and the actions of the management doesn’t inspire confidence yet.
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