So I downloaded the financials of RNSE-Tronics Pvt Ltd from MCA via Tofler. This is the same promoter owned company which supplied components to DCX. Here are my findings.
76% of the shares of this company are owned by the MD.
Low profit margins are not the issue here. Its more about the nearly 13% more profit (even more when buying economies of scale etc are considered) , that the minority shareholders didn’t potentially earn.
The company’s trade receivables would be a better indicator of DCX’s payment timeliness - which appears to quite good in FY23. It also seems to be a trading co since it has just INR 55 lacs in fixed assets - so im not sure if it is adding any value here.
Unless an independent supplier offers worse terms or price, I would be sceptical.