One of the positive factors in recent time is increasing gap between cotton prices and polyester prices. Though cotton prices fell but fall in polyester prices was more steep as it is crude derivative. Polyester is raw material for Sarla. Yes Gaurav, you rightly pointed out about crude tailwind benefits to Sarla. But historically (last 10 years), Sarla has enjoyed 45%+ gross margin, management is of the view they sell value added products which gives them these high margins. In addition, USA plant is also adding to margins as it is stabilizing.

But yes, will surely take your point on concall about volume and realization growth. Thanks

http://www.moneycontrol.com/news/ipo-issues-open/aditya-ghosh-interview-39indigo-has-taken-carefundamentalscost39_3866201.html

A very good realistic interview post IPO closing.

You are going to have to deliver quarter on quarter because you are going to be a listed entity. Let me talk to you about specifics. If you can take us through the kind of applications that you have got as far as the QIB portion is concerned. Can you take us through the number of applicants that actually came in, in the QIB category?

A: I know that the anchor book had more than 40 investors. QIB of course saw a huge amount of response as you said, close to 20 times subscribed. More than just the numbers what we feel is sense of pride and the kind of investors who have now come in either after a long period of time into India or for the very first time in an IPO in India. So, it is just the quality of people and these are some of the biggest players, some of the most sophisticated investors from around the world who have seen a lot of companies around the world and some in India as well. That is what kind of makes us feel good with what we have been able to do and once again a lot of trust in us now, lot of faith in us now, we have got to kind of be able to deliver on that faith and trust.
Possibly because many of these people actually have holdings in some of the very best airlines around the world, some of the most profitable airlines around the world. They have had holdings there for a long period of time.

India is a complex story. The airline business in India has been very different from what you see in many other parts of the world. In that for someone to really appreciate what IndiGo is doing, how IndiGo is just so structurally different from anybody else. However as we become a listed company, as people start watching us more carefully, as people start seeing us on delivering on some of the things that we have been saying in the roadshows, I think the understanding for the airline business and more importantly how IndiGo is just so very unique and different from everybody else is something that will grow in on the Indian investor as well.

What kind of demand environment are you expecting. We are at the start of the festive season now. In the short term, medium term and in the long term all kinds of estimates have been put out by IATA, CAPA, so on and so forth about what the long term promise looks like. But let me start by asking you about the short term demand environment, the medium term and then talk about the long term prospects.

A: We expect it to be in the kind of late teens. So, 18-20 percent year-on-year (Y-o-Y) for the next few quarters just as it has been in the past. Going up to 9.5 percent Compound Annual Growth Rate (CAGR) over the next 20 years but what I am saying is not rocket science. You look at India, look at the size of India, look at how underpenetrated the aircraft market is. A country of 1.3 billion people, less than 400 commercial airplanes in this country. So, there is going to be huge amount of demand. It is for people like us to be able to take advantage of that opportunity, execute to that perfection and add more and more airplanes, more and more capacity so that more people can fly and hopefully if cost structures start coming down even further then the propensity of travel increases even more and then the growth takes an even bigger kicker.

Omg rks. That was an awesome reply . I am indeed thanks to you. I did not expect a reply so early. I have collected some material on EVA and would love to share it here with you. With your efforts and if other join in we can make this EVA thread a great place to learn.
Yes , I too have read the arguments in favour of EVA and they are pretty impressive . we need to calculate EVA of Indian companies correctly . would you like to take the initiative. I will give whatever limited knowledge I have abt EVA.
Also thanks abt the miller approach . I am curently reading earnings power box and EVA

Mint article came after IPO got over.

On a lighter note, don't read too many articles during a company's IPO, the 'nice' articles about the company would far out weigh the 'candid' articles. Too much money, self interest, conflict of interests, bakra making is involved in media, Investment bank circles during this time. The most important moot points are, WHY is the company coming for an IPO and WHY NOW? If the answers point towards genuine reasons, then pick it up.