Sorry, I still cannot understand.
I compute,
Total Revenue QoQ increase as 6%, 138 Cr v/s 130 Cr.
Material Expenses QoQ increases as 2(a)+(b)+(c), also by 6%, 116 Cr v/s 111 Cr.
Material expenses are all these components,
(a) Fresh consumption (for use in production)
(b) Stock-in-trade (very minor component, can be ignored, hardly 0.5 Cr difference)
(c) Inventory (mainly understood to be of finished product, here decrease occurs in both quarters)
There is absolutely ZERO difference in margins due to material costs (or any other reason) on QoQ basis.
In March quarter, fresh production was less and more existing inventory of goods was sold off.
In June quarter, there is simply more production.
Accounting takes care of this and shows this very clearly, by treating decrease of Inventory as an expense.
An increase in Inventory on the other hand is deducted from the expenses!
