The loss in Q1 was something hard to explain. That said, they seem to have put in a lot of work on the current year’s annual report which is at a different level as compared to previous years. From what I understand from the annual report their strategy is to expand their network in 2 other states this year and the increase in workforce was probably due to that. The AR reveals that they are focusing on changing the product mix towards higher margin products and if you compare like for like sales of its products as per details provided in the investor presentation it does seem that there is a major change taking place in the product mix. There may be something here but i think it is still very early days and a lot will depend on how they execute under the Promoter’s Son. I darw partial comfort from the low debt equity ratio which will give it some leeway until they achieve a turnaround (if any)
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