The detailed breakup is not known but my assessment based on earlier standalone results is that 8.5% of the total revenue is from the merged entity.
I do not think that 9-10 cr licence fees would be saved as that amount would be saved when all the subsidiaries are merged. From LRR merger should save around 3.5 cr of licence fees if I am not wrong, which again in my view is very substantial as it directly adds to the bottomline. Coupled with operational synergies and lower raw material costs, Liberty should improve its EBITA margins next year too.
Management was saying in last nov, that they are seeing increase footfalls in their stores but as you rightly pointed out we should independently verify it.
Please note, that I am a firm believer of aa “extremely” concentrated portfolio and therefore, Liberty forms a major chunk of my holding. So take everything in perspective.
Furthermore, The stock broke out of a 5 yr consolidation which ideally should not be ignored and it can give manifold returns even if the company grows marginally. In this case, all indications are that the company is on a high growth path.
