- 31 Oct 2022
- ICICIdirect Research
Astec Lifesciences reports strong topline growth in Q2FY23
ASTEC - 1205 Change: 3.75 (0.31 %)News:
Astec Lifesciences reported topline growth of 94.7% YoY to Rs 199.7 crore against our expectations of Rs 250 crore (we were expecting higher spillover impact from earlier quarter) . The growth was driven by higher sales price realisations in both domestic as well as export markets compared to the same period last year. This was also supported by strong volume growth in export markets. CMO sales contributed 8% to the total revenues. Gross margins declined 11.5% YoY to 38.5% while sequentially it grew 5%. OPM declined 390 bps to 16.7% (our estimate 16%). Absolute EBITDA came at Rs 33.3 crore against our estimates of Rs 40 crore. Other expenses increased 53% YoY to Rs 28.6 crore. Astec Lifesciences reported PAT at Rs 18.3 crore against our estimate of Rs 21 crore (up 102% YoY)
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We believe the topline performance in Q2FY23 was driven by higher realisation to the export market and good volume growth in contracting and manufacturing business. We believe high cost inventory has impacted gross margins level in this quarter. Power and fuel cost have restricted overall industry growth and, hence, affected EBITDA margins of the company. Going ahead, with new R&D unit coming on stream one can expect meaningful development of specialty portfolio. We expect a better performance in H2 compatred to H1
Impact:
Positive