Rather than posting a conclusion, you should be finding the cause of negative CFO.
They have been growing at a high pace. In 2016-17, there was huge surge in trade receivables because of growth. This is bound to happen In B2B high growth small businesses.
However, in 2017-18, trade receivables are slightly down so CFO should be very good in 2017-18.
@Vijayk The cause of -ve CFO is massive investment in working capital and thats what my concern is - cash flow is not backing the rosy P&L year after year.
Can’t comprehend your logic of high growth, AR movements in 2017 & 2018, etc. Appreciate if you can throw more light. Any real life example which you can relate to?
Btw, it looks like even 2018 CFO would not look that good.
BS (consol) movements suggests -28 cr (72-100) outflow on a/c of inventory, -30 cr (120-150) outflow on payable, off-setted marginally by inflow of 7cr on AR (262 - 255). Net investment in wcap of -50 cr outflow, (excluding other working capital adjustments). works out to be around 2x wcap investment in 2017 (of around -25 cr outflow) cash flow statement.
What was the percentage growth in revenues in these years? If revenue growth is huge, then the working capital will increase to that extent leading to sucking of all the cash. Inventory, trade receivables are a function of revenue.
This is the reason that high growth cos may have negative cash flows and no growth cos may have good cash flows.
1 Like
“CRISIL has reaffirmed and subsequently withdrawn its ratings on the bank facilities of RCI Industries and Technologies Limited (RCI). The ratings have been withdrawn after receipt of no-objection certificates from The Jammu and Kashmir Bank Limited, Union Bank of India, Indian Bank, State Bank of India, The South Indian Bank Limited, United Bank of India and Corporation Bank. The rating action is in line with CRISIL’s policy on withdrawal of bank loan ratings.” What is it? Good or bed for company?
They have changed the rating Agency from Crisil to Care and Crisil after reaffirming has withdrawn the rating & that too after obtaining the NOCs from all Banks. No negative or positive as it is normal Corporates change rating Agency. Care issued the report in April 2018 with same rating as assigned by Crisil and generally, rating is valid for 1 year.
1 Like
Another poor quarter. How is the plant expansion coming up? How to read promoter’s infusion of funds at 225 rs per share?
Anyone contacted the management recently?
1 Like
Any fellow members tracking this stock?
A pump and Dump comes to end and how… Stock down to 2 bucks…
Another thread where people kept warning but few vested guys just didn’t want to listen.
Same @Vijayk is active on Omax Auto also
5 Likes
This @Vijayk has a twitter Id with name of vijay Pahwa. He is basically conning people. I have had few guys who complained about him. I have even warned about him on other threads, sadly my post were taken down.
High time admins take action against such handles. There are a few more such people.
But again the effort to call out them are also not worth it.
3 Likes
I would not say he is conning people. He doesn’t know his stuff. Problem is he thinks he is smart.
Best eg: Refer his not-so-convincing arguments to my warnings here.
1 Like
Reading through topics with no recent posts (last post older than 18 months) has been quite a learning exercise. Kelton, MRSS , Aksh,Krisdhan & RCI to name a few. Thank you very much @ashwinidamani on timely warning that saved me(us).
3 Likes