-Revenue was 962.5 Mio. (26% increase) vs Income Tax paid out was 45.5 Mio. (110 % Increase).Now this is quite an adjustment for one quarter. Can they do such adjustments and get away with it?
- Increase in Inventories for 9 month period - 518.8 mio. (They had increased their outlets and inventories had increased significantly thus increasing their cost of W/C - 18%. Increase of interest payout for qtr.)
- Increase in CAPEX - 349 mio.
- Increase in borrowings - 518.8 mio.
- If you note, they just concluded a share issue and collected only 250.5 mio. Couldn't they have gone for a higher share issue? Otara was not comfortable with increasing the public holding %?
The final analysis:
Cash Management / Treasury needs higher level of expertise. May be Otara has to look at that angle.