Analyzing...
Hmmm…Ah.. Sir. Good Morning. You know, you said you will hold the margins.. but from this 10 to 11% band, could you move the 11 to 12% band?. I mean, is there a visibility?. We are already at 12.2% EBIDTA. So the EBIDTA levels can be sustained without any difficulty with the increased sales in the second half. Slot 6 Okay. Alright. Ah.. give us little details on your balance sheet sir. You know, I think you were talking about bringing the debt down to around 500 crores in the next 2 years. Currently, it is around 1500 crores you have done a rights issue I think QIP as well in the last 12 months or so. Where do you see this debt number end this fiscal and by the end of FY 25 does it come down to 500 crores? FY 25-26, we are expecting it to happen for 2 reasons. Actually, we have a heavy depreciation and also on the interest that is IND AS which is also about 30 crores so that is not the cash outflow, the depreciation and cash inflow of IND AS itself is more than 400 crores per year. So, that will be the main flow apart from the normal profitability what we are looking at…. this year fearing the last year problem we also kept heavy stock so, those stocks will get diluted over a period. So, both put together it will reduce the working capital burden and the debt together with the better profitability in the coming quarter.. second half. Slot 7 Ah…Just follow up to what Prashant asked you on margins… you said margins will sustain around these levels. So is it fair to assume that you will… I mean gross margins in Q2 around 30% that is something you can hold on to for the rest of the year … is that correct? No.. no.. I am only saying EBIDTA of 12% plus is possible for the second half. I am not talking about gross margins and all that. Right.
Slot 8 Okay. So EBIDTA of 12% is sustainable for the second half of the year. Got that and in terms of …….your debt.. With incremental sales…. Slot 9 With incremental sales… Yes yes.. debt will start coming down with the dilution of dairy ingredients by April, May, June, I think the debt will come to less than 1000 crores in our opinion. Slot 10 Okay. So, Less than 1000 Crores of debt by April of 2024 got that….Ah… No.. no..no. I am talking about from June June 2024, the dairy ingredient dilution will take place and debt will come to less than 1000 crores I am saying Slot 11 Ok. And earlier you told us that you intend to take the debt below 500 crores over the next 2 years.. you hold on to that target is it? That is right. I am talking about only the coming year we will be less than 1000 by June and another one more year is there where we can just bring it down to 500 Slot 12 Alright. We leave with this good luck and appreciate you in joining in with all other perspectives and it’s all our pleasure sir speaking with you sir….