- 04 Nov 2022
- ICICIdirect Research
AMARA RAJA REPORTS HEALTHY PERFORMANCE IN Q2FY23, MARGINS EXPAND 330 BPS QOQ
ARE&M - 1303 Change: -7.80 (-0.59 %)News:
The company reported a healthy performance in Q2FY23. Net sales for the quarter came in at Rs 2,700 crore, up 3% QoQ. EBITDA in Q2FY23 came in at Rs 360 crore with corresponding EBITDA margins at 13.3%, up 330 bps QoQ (highest reading in last six quarters). PAT in Q2FY23 was at Rs 202 crore, up 54% QoQ. The company has also declared an interim dividend of Rs 2.9/share with record date on November 16, 2022
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Margin expansion for the quarter was led by decline in raw material costs, which were down ~390 bps QoQ amid ~10% decline in lead prices in rupee terms over the last two quarters. The company also announced formation of wholly owned subsidiary to undertake the business of manufacturing Li-On batteries. However, it is yet to announce meaningful capital commitment towards the same, which makes us maintain a neutral stance on the stock
Impact:
Positive