Source: Axis Securities
Skipper is doing a fund raise of 600Cr so essentially, they are going to be debt free post fund raise which means earlier they were paying high interest costs(50% of EBIDTA) which will now flow directly to bottomline also capex can be funded through internal accruals, reduction in working capital cycle means less money stuck in inventory and receivables and thus no need of bill discounting . Now as pace of order execution increases their margins can expand to 11% due to operating leverage.
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