The company reported a steady performance in Q2FY23. Net sales for the quarter came in at Rs 475 crore, down 5% QoQ. EBITDA in Q2FY23 came in at Rs 50.4 crore with corresponding EBITDA margins at 10.6%, up 30 bps QoQ. Ensuing PAT for the quarter came in at Rs 30.1 crore, flat QoQ
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The company’s sales performance was satisfactory amid QoQ production decline in the M&HCV space domestically. Savings were realised on the raw material front (down 20 bps QoQ) and were further supported by positive operating leverage. The numbers, however, broadly tracked our annual estimates for FY23E. We remain positive on the stock amid CV cyclical upswing in near term & company being the key beneficiary for the same with capital efficient business model and net debt free b/s
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