The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Prerna Jhunjhunwala - Elara Securities (India) Private Limited, Research Division - Analyst
: Congratulations, sir, on a good set of numbers. Sir, I wanted to understand 2, 3 things. First, being the garments business, we are looking forward
to increase our capacities. I understand that the demand is going to improve from here on and we want to be capacity ready. I just wanted to
understand the efforts taken on building on new clients, new product categories or what categories we are focusing on to utilize our capacities
better than in the past?
Question: Prerna Jhunjhunwala - Elara Securities (India) Private Limited, Research Division - Analyst
: So this is helpful. A follow-up on this garmenting piece is how much is the revenue share of essentials today? How do you define essentials? And
eventually, where do you see essentials portion going to be in your portfolio?
Question: Prerna Jhunjhunwala - Elara Securities (India) Private Limited, Research Division - Analyst
: Okay. Okay. Sir, my second question is on debt. You mentioned that long-term debt is going to come down while short-term may increase because
of working capital requirements. What are the efforts we are taking on reducing on our working capital per se, including our creditor days, which
is very high? And second, short-term debt generally is at a higher cost than long-term debt because of the subsidies that textile segment gets.
So why do you think it is a more risky component than the short-term debt, which will actually be higher as you grow. So controlling that will be
much more important than actually long-term debt because with higher capacity utilization, long-term debt can be paid off, but working capital...
Question: Prerna Jhunjhunwala - Elara Securities (India) Private Limited, Research Division - Analyst
: That's very helpful, sir. And sir, my last question is on your EBITDA margins. With this CapEx and the efficiencies that you are building in the system,
where do we see EBITDA margins in the next 2 to 3 years' time frame given normalcy kicks in?
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