The headwinds due to inflation will be offset by revival of hospitality and hotel sector which is evident by record flight travel. Faze three supplies high end/luxury products- sheets, pillowcases, blankets, carpets, curtains, dining room tablecloths, cloth napkins to top hotels in US.
One needs to be careful while drawing conclusions from this data:
- Are you sure the company uses only Mumbai port and not any other port in India
- This is import data (not export data). Which means this would some portion of raw material imports. If company has high inventory of raw materials end FY22, why would they import more in current quarter.
- See PPT https://www.fazethree.com/wp-content/files/FTL_Company_Presentation_2122Q4.pdf. The company did have higher inventory days end of March 22
Let us wait for results before drawing conclusions!
Revenues of Rs147crs up 50% YoY. Profits of Rs14.54crs up 60% YoY
Good results. They hv managed to maintain their topline and margins even in this tough environment.
But definitely there is some impact on the demand.
They commissioned new capacity under Floor covering & rugs segment during April month. But could not see any contribution from it in Q1.
Otherwise topline growth could have been far better.
Lets wait for the mgt commentary in the presentation.
Positive commentary despite all the other players facing demand headwinds.