- Did anyone notice that their cash flow from operations is wrongly calculated in financials statements (consol.), it should be 28 Cr instead of 150 Cr. Interestingly, it appears to be wrongly calculated for FY-24 on screener as well, it should be 16 Cr instead of 29 Cr
FY-24
- Anyways, receivables have turned positive I believe for the first time, which is a sign of good ROCE generating business and ideally, since they take rent upfront it should remain positive as they expand
Some concerns:
- They had given a target of 65-70k seats for FY25. Since they add under development seats too in their seating capacity numbers, let’s assume we would have 61k operational seats by end of FY25. This means that they need to add 2x the number of seats in H2
- They had given guidance of 2x revenue in FY25 which seems unlikely to happen. We should ask them if they would like to revisit their guidance. I estimate around 60-65% sales growth over FY24 which is still decent
- As per their ppt, their rentals paid to received has increased from 40% to 45% but EBITDA has remained same at 25%. Interestingly, in rental division EBIT margins have increased from 22% in Q2FY24 and 24% in Q1FY25 to 39% in Q2. I am not sure what is the reason for this sudden jump in margins as rental prices have remained same at 6250, rentals paid has increased by 500 bps, employee costs have remained same YoY and improved by just 53 bps QoQ - @manhar if you can shine some light on this
- Rental revenue based on 90% occupancy on 46.8k seats should be 79 Cr but they have reported it at 89 Cr, either they had high occupancy earlier (seems unlikely as this number was 91% in Q1). Again, I might be missing something here
- Avg rent per seat seems to be constant for last 1.5 years. Why have they not even increased the prices by 7-10% to account for inflation? Do they lack pricing power this much?
- Interior EBIT margin has also increased by 800 bps QoQ, what could be the potential reason for this?
Discl: Invested.
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