While the story is interesting, I am finding it tough to triangulate a few things. While everyone has spoken about the interesting bits, id like to play devils advocate here
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The copmany seems to be focusing on too many things. Geospatial, Auto ERD primarily mechanical, AI through Megnxt and now data centres. How are these businesses related? One can make a remote link between geospitail and navigation for auto but thats more of a justiication than merit
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As highlighted, how is it even possible to have negative working capital cycle here. This just doesnt add up. The nature of the business does not allow you to have -ve working capital. This primarily comes from payables which are at 700+ days. I dont see why any vendor would work with their customer if they pay in 2 years. even mangements explanation on call doesnt seem legit tbh.
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166 cr of receivables vs reported revenue of 250 cr. not a one off. it was 159 cr in 23 and 180 cr in FY 22 vs revenue of ~200-220 cr. High share from unbilled revenue.
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Provision as a % of TR avg 15% over the past 3 years.
Tailwinds in the industry aside, how these materialise into economics is equally important, if not more. This is just based on a prelim look at financials. Will dig deeper in the notes.
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