@narenarora i got a bit of answer, that 175cr includes the greefield expansion of cpc green, but this 131cr they showed in the ppd dosent include that, hence the difference…
Check the last investor presentation for the break up…
I am an investor in gnfc too for quite sometime and from their concalls and talks and outlooks , aniline prices are not coming down, as of jan, its as high as q3…
So margins on VS are gonna continue to be constricted , Any outlook on sulfur price recent trend?
Not worrying about pigments because i found in the concalls its easier to pass though the RM costs in pigment than VS… Infact the fact the revenue pie of Vs going to get diluted mainly by Cpc green is a good thing for the margins going forward in these tough times of RM prices, as it will be easier to pass though in pigements and margins will be better…
Also i am impressed with Silica capex wich will be almost 50percent of the topline addition 80 to 90cr…As its RM dosent have a pricing power, so there we dont have a pressure from RM on the margins, further diluting the revenue pie of VS where the main margins are getting compressed and forms 60percent plus of the present topline…
With backward integration of cpc blue which is required for cpc green as a RM, we can protect ourselves from whatever margin contraction that might have been possible otherwise…
So i feel this capex will not only add topline but aid some potential sustainable margins too…
I will try to get this logic verified in the concall, but do members of this thread validate it…?
I just hope they take foreign currency loans, much much cheaper in finance costing…
The previous long term loan was from domestic source where the interest at current rating of the company is around 9 to 10percent, which is only 5 to 6 percent on foreign currency loan, which will be substantially lower, although there may be some forex loss ( increased interest cost) on account of usd/rupee fluctuations , yet the forex loss would occur only if rupee weakens but that will be offsetted by export related forex gains in the same situation of weaker rupee if that ever happens…
Disclaimer… Contains forward looking statements… Not invested yet, researching …