- 02 May 2024
- ICICI Securities
ADOR REPORTED MUTED SET OF Q4FY24 RESULTS
ADOR - 1007 Change: -13.70 (-1.34 %)News: Ador reported muted set of Q4FY24 results. Revenues came in at Rs 246.7 crore up 4.8% YoY and 11% QoQ. From a segmental perspective, consumables segment revenues grew a meagre 1.5% YoY at Rs 190 crore, whereas welding equipment segment grew by 27.4% on a low base. EBITDA came in at 10.4% which was down by 310 bps YoY on account of higher employee and other expenses whereas gross margins remained flat QoQ and YoY. PAT came in at Rs 18.2 crore vs. Rs 22.6 crore YoY and Rs 13.7 crore QoQ. The company declared Rs 18 per share as dividend for FY24.
Views: We like the business model Ador given its strong position in the domestic welding market. We believe that given a strong capex cycle the welding industry will see strong demand traction going ahead couple with decent demand in the equipment segment. Any weakness on account of Q4FY24 should be used as buying opportunity.
Impact: Neutral