As expected, strong Q1FY25 results from Pokarna on all front. I believe, this year performance will be overall good due to combination of:
a) change in mix in favor of higher margin products,
b) operating leverage playing out, and
c) effect of shifting to lower tax regime
Triggers for FY26 would be:
a) revenue from Chromia / Kreos (expectation is that both of this would be margins accretive)
b) lower finance costs, as company should repay a good chunk of its debt by mid-next year
Not to forget, we need to closely watchout for demand condition in US, which are yet to show sign of recovery & also the freight rates, which are currently too high & unpredictable.
Any improvement in granite business would be cherry on the top.
For any material growth beyond FY26, company would need to announce CAPEX plan. Usually it takes 18-24 months to setup.
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