my 2 cents on the receivables issue
1. are the biils genuine ? - yes..since they service only cat A customers, list of whom is well known
2. will the money come in ? - yes...no bad debt from these guys..the poor accounts have been weeded out
3. if the money comes in late...will it disrupt services ? No. And this is important to understand. Incremental sales for product companies carry very little incremental cost. Hence, even if the money comes in late..its fine...because its not needed once the expense hump is crossed
4. Given that this is the nature of the industry, what would investors rather have ..Intense takes on more business or the opposite - the answer is obvious. Even with delayed payment cycles , incremental sales is better.
If the company has survived all these bleak years without raising funds despite delayed payments, and yet always paid salaries etc on time...means it generates enough cash to keep the engine running. The rest is profits...and i personally am ok with the delay given that its the nature of the industry and the money eventually comes in.
Rest is upto individual investors to be comfortable with this...dont see how the company can change its business model for our comfort.
mcap when posted: 390cr
Disclosure : increased exposure in q4