- 31 Oct 2024
- ICICI Securities
AIA ENGINEERING REPORTED A WEAK OPERATIONAL PRINT FOR Q2FY25
News: AIA Engineering reported a weak operational print for Q2FY25. Consolidated volumes came in at 60,330 tonnes down 20.1% YoY and flat sequentially. Mining segment volumes came in at 39896 tonnes down 23.4% YoY and up 8.5% QoQ. Revenues came in at Rs 1044 crore, down 19.4% YoY and up 2.4% QoQ. EBITDA Margins came in at 26.40% which contracted by 311 bps YoY. PAT came in at Rs 256 crore down 21% YoY , PAT Margins contracted 30bps to 19.72%.
Views: Delay in shipments and non-availability of containers, delay in orders from customers due to expectations of declining of freight costs in the near term lead to miss on volumes and even going ahead H2FY25E looks to be challenging for the company in terms of volumes. This we believe will keep the stock in range. However, we like the business model of AIA given its strong leadership the duopoly mill internals market and any severe weakness will provide an entry point.
Impact: Negative