R R Kabel · Material risks, their source context, and severity in the latest available quarter.
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Copper prices moved 20-25% in a single quarter, creating channel working capital pressure. Management acknowledged channel inventory increased by 5-7 days in value terms, though noted maximum sustainable inventory is ~45 days given finance costs.
Management admitted that if copper prices fall sharply back to ~$10,000/tonne levels, there could be a pause in demand at the stocking level (though not consumption), potentially impacting revenue in the near term.
Segment margins declined slightly vs Q2 as the 25% copper price rise was not fully passed through in Q3. Management noted 0.5% margin impact from the lag, though claimed performance was better than industry peers.
FMG segment revenue flat at ₹243 crore with ongoing losses despite cost reduction efforts. Discretionary demand remains selective, though management targets break-even this quarter.
