News: The company hosted a corporate day last Friday evening wherein it reiterated its FY26 targets in terms of sales (US$5 billion), EBITDA margins (>15%), RoCE (12-15%) and b/s leverage (net debt: EBITDA <2)
Views: Key takeaway from the analyst meet was the company’s focus on capital efficiency wherein the management refrained from committing any new growth capex in the prevailing low margin regime with current focus on sweating of assets and attain double digit return ratios profile. On the flip side, the management shared that gross margin pressure is likely to continue up till Q2FY23 vs. earlier guidance of Q1FY23 and it is taking industry leading price hikes in the replacement market to mitigate the raw material costs inflation impact
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