- 28 May 2024
- ICICI Securities
Operational performance remains muted YoY
NRBBEARING - 323 Change: 2.60 (0.81 %)News: Revenue declined by 8.9% YoY to Rs 258.4 crore in Q4FY24. EBIDTA margin also contracted by 400 bps YoY to 16.6% for the quarter. Subsequently, EBIDTA was down 26.6% YoY to Rs 47.2 crore. PAT declined by 9.2% YoY to Rs 31.8 crore. Sequentially, revenue was up 10.1% while EBITDA increased 32.2% as EBITDA margin improved 276 bps QoQ. For FY24, revenue is up 3.5% YoY to Rs 1094 crore while EBITDA is up only 1% YoY to Rs 174 crore as margins contracted marginally by 40 bps YoY during the period.
Views: Operational performance remains muted on YoY basis, due to demand moderation from domestic auto industry. However, the numbers have improved on sequential basis. Going ahead, with focus on improving the product mix towards e-mobility agnostic products, we believe that company’s growth from domestic automotive segment will pick-up. Moreover, expected recovery in exports would also contribute to company’s growth in the coming period. The recent land sale for Rs 182 crore would help company to execute capex for new products in EV segment and deleveraging its balance sheet (gross debt has already been reduced to Rs 173 crore by Mar-24 end from Rs 300 crore).
Impact: Neutral