In this quarter (Q2’19), gross margins appear to be low but because of increase in realizations (from 5.4lacs/MVA to 7.5lacs/MVA) gross profits per MVA increased by 33% to 1.56 lacs/MVA. Similarly EBITDA/MVA doubled 76000/MVA from 38000/MVA.
These numbers look good for H1’19 as well, EBITDA/MVA increased by 70% vs H1 2018 and 20% vs full year FY18.
Improving profitability is a positive sign worth noting. Commentary on cement, auto, paper, textile, tyres, chemicals, and oil & gas has been positive and bodes well for V.
However, these positive data/commentary/indicators are there for only few quarters, unless the trend continues for another couple of more quarters one can not be sure of a structural revival in industrial capex.
best
rajat