FAZE3 – TURAROUN STORY??

http://www.fazethree.com

Supplying bath-mats, blankets , Rugs and other textile products to walmart, J.c Penny , Lidil- Hongkong

E-mart- korea , and to other 15 countries .

The company seems to be on a turnaround path, , recently raised funds by issuing more than 15% equity on preferential basis,

Girik capital bought 7.17 lacs shares on 20^th Jan 2017 , Girik capital is known to find deep value and turnaround stories.

Their commitment to the Faze3 can be seen from fact that the founders Charandeep singh and Varun Daga have bought 2 lacs shares each on personal capacity too .

Seems like a interesting story.

Doing more work and will update with a detailed analysis.

HUGE POSITIVE IN  - Dec 16 Q3 Results

Sales almost flat yoy. 56.75 vs  55.59

Profits 35.91 Crore As compare to 69 lakhs in Dec 15 & 4.32 crores is Sept 16.

1)Other income of 17.45 crore , 12.38 crore part of the other income is because of  written back  amount due to settlement with canara bank for waiver of unapplied interest and other charges on the working capital loan given to its subsidiary.

2) Further 11.12 crore deferred tax assets written back due to which profits swelled to 35.91 crore.

Other than the implications of the above nos there is operational efficiency seen.

Cost of material consumer came down by 9 crores , other expenses reduces by 4.3 crores

Interset payment reduced by 1.71 crores.

A clear 7.34 crore of profits is due to operational efficiency.

The total outstanding on the FCCB bonds was 103 crores, due the the settlement with the bond holders

61.28 crore is written back in the books.

Other liabilities reduced from 161 crores to 27 crore

Company have mentioned in the notes that Due to the equity issued in oct 2016 and write backs the companys net worth have become positive to the amount of  75.89 crores and the company have come out of BIFR with effect from  1 dec 2016.

This seems to be curious case of a big time financial restructuring and operational improvement.

For more clarifications Please read the detailed note by the company in the result fillings.