“FY22 was a remarkable year for the company as it was able to add significant capacities, management bandwidth, new products, customers and substantial value across all stakeholders. Even after sharp rising prices of raw materials, the company was able to report its highest-ever revenue. Margins also improved, resulting in strong net profit growth. The company is currently running at a peak capacity level. It has zero long-term debt in the balance sheet since FY18; however, recently, the short-term debt has risen due to inflated raw material and transportation cost as well as due to ongoing capex,” it said.
The management indicated that there is huge unfulfilled demand within the existing customers that could be met with the increased capacity. HDFC Securities has envisaged 16 per cent and 18 per cent CAGR in top line and bottom line between FY22P-24E. It remains watchful on the margin front as select raw material as well as crude prices are at elevated levels.
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