Rashi Peripherals, a recently listed company, discussed its Q3 financial results during a market session.
The company saw a 20% increase in revenue to 2624 crores, while profits dropped by 11.3% to approximately 25.2 crores.
Margins experienced a slight decrease, hovering around 3% due to various factors including pricing adjustments, volume impacts, and market normalization post-COVID.
Demand for PCs is increasing, attributed to factors like inflationary pressures, the Russia-Ukraine conflict, and post-COVID market normalization.
Despite a slow growth trend in previous quarters (FY21 and FY22), Q1 FY23 saw a 12% growth, indicating improvement.
The growth trajectory improved sequentially, with Q3 FY24 showing a 21% growth compared to the same quarter last year.
Margins were impacted by factors including a subsidiary company's impairment, primarily due to the nature of its business.
The company has already repaid debts amounting to 325 crores, utilizing available credit, leading to savings in interest costs.
Despite an IPO infusion of funds, the company emphasizes that its business model involves negative cash flow due to working capital requirements.
Overall, there's an expectation of positive cash flow in the future, but immediate cessation of negative cash flow is not anticipated due to the nature of the business.
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