I had a chance to talk to the CS of sharp india some time back. Here are the key excerpts from that conversation:
He “sounded” confident of the present quarter and company in general.
I did ask him a bit on the ACs sales this quarter, and he said that in general AC sales were up for probably every company because of extended summer.
Furthermore, when asked about manufacturing of Air Purifiers, he clarified that as of now the Pune Factory only manufactures TVs and ACs. Air purifiers are not manufactured by sharp india as of now.
He also mentioned that the TV manufacturing capacity of the plant is about 3lacs/year and that of ACs is about 1.75 lacs/year. When asked about the reason of the
sudden rise in volumes and profitability in last quarter and whether it was sustainable in this quarter and moving forward or not, he mentioned that the rise
in turnover and profitability was purely due to operations of pune factory being stabilized. One can infer from this that most likely the EBITA margins are
sustainable and, therefore, I believe if this is the case, the company could post wonderful results moving forward, in line with last quarter’s result. He said he could not divulge more as it was a price sensitive data, which i agree with.
Overall, the tone of the conversation was bullish.