Except for the increase in ST Borrowings to handle the Working Capital Needs, I feel the results have been good.
Management in their latest concall explained that the additional funds were needed due to the 2-3 months lag in the INR 5 subsidy payment being provided by state government.
As one can see below, despite the increase in ST Borrowings, they seem to be not utilized given the corresponding increase in “Bank Balances excl. C&CE” line item.
Mgmt continues to take the benefit of low milk prices and increase in gross margins by spending on S&D.
I like the fact that mgmt continues to spend on Bulk Milk Coolers, which should help to increase the density.
Overall, I see that management has been consistent in walking the talk so far.
Disclosure: Have bought more this week since the price dropped.