- 05 Nov 2022
- ICICIdirect Research
ADOR WELDING REPORTED A DECENT SET OF Q2FY23 NUMBERS FLARES AND PROCESS EQUIPMENT SEGMENT CONTINUES
ADORWELD - 1186 Change: 43.05 (3.77 %)News:
Ador Welding (AWL) reported consolidated revenues at Rs 184.9 crore which grew by 15.9% on YoY and 17.1% QoQ led by better performance in consumable, flares & process business
· For Q2FY23, Consumables segment revenue came in at Rs 148.1 crore (which contributed ~80.1% to total revenue), grew by 17.5% on YoY and 22% on QoQ basis, Equipment & Automation segment grew by 3% to Rs 28.5 crore on YoY & 25.1% on QoQ. While Flares & Process Equipment Business revenue came in at Rs 8.5 crore and strongly grew by 37% YoY and de-grew by 39.1% QoQ. EBIT margin for Consumable business expanded by 100bps YoY to 11.1% and contracted by 400bps QoQ, Equipment & Automation EBIT margin came at 6% (Vs. 11.3% in Q2FY22) and (3% in Q1FY23) while Flares & Process equipment business margin came at -0.5% vs -12.1% in last year same time and 14.4% in Q1FY23
· EBITDA came in at Rs 15.2 crore grew by 16.3% YoY and de-grew by 6.8% QoQ basis. EBITDA margin came to 8.2% remain flat YoY basis and contracted by 210bps by QoQ basis. While, gross margins for Q2FY23 at 29.5% vs 27.4% in Q2FY22 and 33.9% in Q1FY23
· Adjusted PAT came in at Rs 10 crore de-grew by 31% YoY and 12.3% QoQ basis
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AWL aims to focus on core welding business, reduce legacy costs while streamlining projects business to regain growth and improve profitability. With the merger with Ador Fontech, Ador group’s vision of becoming a market leader and consolidate market position. Also, it will provide a diversified portfolio of products, economies of scale, optimal use of distribution network, sales force, human resources, manufacturing units, supply chain, research & training facilities.
Impact:
Positive