AIA reports reasonable Q2 performance amid travel restrictions, higher commodity pricesAIAENG - 3428 Change: 24.10 (0.71 %)
News: AIA Engineering (AIA) reported consolidated revenues at Rs.885.2 crore which grew by 19.2% on YoY basis. EBITDA came in at Rs.161.9 crore, which declined by 14.9% on YoY basis. EBITDA margins declined by 730 bps on YoY to 18.3% impacted by significant decline in gross margins to 55.5% (Vs. 66.1% in Q2FY21) amid higher commodity prices. PAT came in at Rs.138 crore which decline by 6.2%, YoY partly aided by higher other income.
Views: Overall, AIA delivered reasonable Q2 performance despite challenging business environment While robust growth witnessed in revenue, EBITDA margins impacted owing to lower gross margins, product mix as higher commodity price pass-through comes with a time lag impacting the profitability for the quarter.