Besides, the company management has indicated good order book inflow through long-term repeat order contracts from existing B2B customers, international development agencies, governments of other countries and other private orders. The company has a high capacity utilisation of close to 90 per cent.
The company has a pan-India presence in 86 cities with nearly 60 per cent of its centres in Tier II and Tier III cities. Besides expansion plans, the impending de-merger of the lifestyle business into a separate company, which will also be listed, can unlock value for shareholders. Both businesses hold significant growth potential.
Consistent growth in profitability and good asset quality thus far, comfortable capitalisation, long-standing experience of the promoters and diversified funding mix are key positives.