The turnover for the company has increased 20% for nine months ended December '00. This is due to the strong growth in sales in the previous two quarters. However, the decline in sales YoY for 3QFY01 could be due to the strong growth (30% QoQ) witnessed by the company in 3QFY00.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Diluted Earnings per share*
The company's operating profits are up sharply. This is due to the 90 basis points improvement in OPM. The company is reported to have registered improved refining margins in the months of October and November.
Despite the improvement in margins the OPM continues to be lower than the industry average of 3.5%. This indicates that the operating expenses of the company are higher than its peer group. Another worrying factor is that the operating income of the company is insufficient to cover its debt servicing obligations. The could snow ball into an internal debt trap.
There seems to be no respite for the company's bottomline, which continues to be in the red. The company has mentioned its plans of roping in a new international partner to meet its expansion plans and overcome the current cash crunch. However, there seems to have been no progress in that direction.
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