Went through AR 15 -my big worry was that OCF has plummeted from Rs 86 Cr in FY 14 to Rs. 40 Cr. odd in FY 15 primarily on the back of increasing debtors, inventory. On top of it, there is a Rs. 196 Cr. loan taken to build out capacity.
Normally a company that takes such a huge loan ought to be more prudent on debtor management and not let cash flows slip - I hope it was a "Snapshot" issue and will wait to see BS in sept.
When I look at cash flows to debt ratio, it looks quite worrisome - I can only hope it's a temporary issue and the mgmt is cognizant of the same.
Yet another thing I observed was how soon the law of diminishing returns catches up in a commodity business - more and more capital goes in and lesser and lesser profit comes out.
I am invested in it as a cigar butt and watching it closely.
