- 31 May 2022
- ICICIdirect Research
Shaily Engineering posts strong revenue growth, margin hit by higher input costs
SHAILY - 1055 Change: 30.45 (2.97 %)News: Shailey Engineering reported topline growth of 39% YoY in Q4FY22 even on a higher base of Q4FY21 (revenues were up by 38% YoY). Strong revenue growth was led by increased contribution of exports during FY22 (76% in FY22 Vs 74% in FY21) due to addition of new customers. EBITDA margin declined by 570 bps YoY to 12.2% due to sharp increase in raw material prices. PAT declined by 24% YoY to | 7.4 crore
Views: Shaily reported a weak performance in Q4FY22 on the margin front. We believe a delay in passing of higher raw material prices took toll on the profitability of the company. However on the revenue front, the company reported strong revenue growth added by new customers in the toy and medical device segments. This resulted in strong revenue traction from exports. The company has guided | 200 crore in the next two years to increase the capacity of medical devices and new products for Swedish Furniture major. While we maintain our positive stance on the company, we await management commentary of EBITDA margin outlook, going forward
Impact: Negative