- 29 May 2024
- ICICIdirect Research
AMARA RAJA ENERGY AND MOBILITY REPORTS STEADY PERFORMANCE IN Q4FY24
ARE&M - 1003 Change: -4.20 (-0.42 %)News: Net sales for the quarter came in at ₹ 2,797 crore, up 15% YoY. EBITDA in Q4FY24 came in at ₹ 408 crore with corresponding EBITDA margins at 14.6%, down 50 bps QoQ. PAT in Q4FY24 stood at ₹ 228 crore, down10% QoQ. Company witnessed healthy across automotive and industrial business segments.
Views: Gross margins for the quarter improved by ~55 bps on QoQ basis while higher other expenses dented the overall margin profile. The company has successfully amalgamated plastic division of Mangla Ind (promoter entity) with itself and present numbers are reflective of the same. Company’s performance lagged its listed peer which reported 140 bps QoQ improvement in margins to 12.9%. With more investments being committed to the new energy space (Li-On battery) amid robust run up in stock price in the recent past (up 50%+ in last 2 months), we have a neutral view on the company.
Impact: Neutral