Result shows they were able to pass on raw material price inflation considerably good.
Sales growth looks great compared to FY21 but it was an unusual last year(low base effect) so we can see it as company reached pre-covid level only.
Value added products are in good demand and its revenue share can increase in the future.
Inventory and receivable have gone up, inventory rise may be due to delay in procuring pipes by EPC contractors and orders of composite cylinders
I don’t understand why their cost of debt is so high? they should focus and restructure this first.
In the past under the leadership of Mr Anil Jain company has made many bad capital allocations & diversification decisions such as buying a battery business, furniture business, pledge shares to buy and develop real estate land in personal capacity (loss of focus on company) etc,
Now with change is leadership let’s see how good or bad capital allocator Mr Bharat Vageria is.
They have taken shareholders voting on selling or divesting or restructuring of overseas business but they did not provide any details to shareholders before voting.
They should have provided detailed or at least brief plan of which businesses they are interested in selling or restructuring.
They are on the right track of focusing on working capital management, lets see if they could show this up in numbers.
Disc : Invested