Adding more from the Q2-FY19 conf call:
Less margins due to:
i) High crude oil prices impacted - raw material and transportation costs
ii) Weak Rupee against Dollar increased the interest cost
Pledged shares details:
- Debt taken from the NBFCs and the shares are pledged to them.
- The Warrants will continue to be converted at Rs. 90 per share.
Future Guidance: Hope to increase the revenue by 3X in next 6 years, reasons given:
i) A large range of water tanks will contribute lots of revenue
ii) The urea tanks for diesel vehicles, reservoir tanks will start contributing in revenue from Sep 2019.
iii) Mass transit (Metro train) products will start contributing in revenue from 2022.
The prodcution/revenue of some of the products kept down (in control) to avoid the high cost and less margins due to high crude oil prices, it was a concious decision henec less revenues in Q2. Also pre-fab revenue declined which is as per plan.
Total capex of H1 was 117 Cr only (India capex = 24 Cr, Foreign capex = 93 Cr), which seems very much under control.
Disclaimer: Invested, hence views may be biased. Its not a buy/sell recommendation.