Anup Engineering posts good Q2FY23 numbersANUP - 2583 Change: -40.95 (-1.56 %)
For Anup Engineering, revenue for the quarter came in at Rs 100.9 crore, up 13.4% YoY and 94.9% QoQ (last quarter was a hit due to low execution) due to better performance in all segments. The company posted gross margins to the tune of 43% vs. 49% in Q1FY23 and 54% in Q2FY22 (lower GMs are due to higher raw material price). The company registered an EBIDTA margin of 20.3% vs. 18.2% in Q1FY23 and 25.5% in Q2FY22. Absolute EBIDTA came in at Rs 20.5 crore, vs. Rs 9.4 crore in the last quarter and Rs 22.7 crore in same quarter last year. Increasing EBITDA margins QoQ are due to positive operating leverage and export orders. Tracking its operating performance, Anup Engineering ended the quarter with PAT of Rs 12.9 crore vs. Rs 17.9 crore in Q2FY22.
Anup Engineering put up a decent show amid challenging environment on the back of strong booking in H1FY23 around Rs 291 crore. Although the management has guided for some low EBITDA margins in FY23E due to raw material prices but that will not be sustainable for too long and margins are expected to get back to normal levels in FY24E. What favours Anup Engineering is its diversified order book, commencing of Odhav plant and capex of Kheda plants. With current order book of ~Rs 536 crore and large order enquiry for advanced products, Anup Engineering is all set to post good growth in the coming years.