- 26 Jul 2022
- ICICIdirect Research
Astec Lifesciences posted Q1FY23 numbersASTEC - 1310 Change: 218.40 (20.00 %)
News: Astec Lifesciences reported revenue growth of 43.2% YoY to Rs 184 crores against our estimates of Rs 164 crores. The growth was primarily outlined due to higher sales price realisations and CMO volumes. OPM contracted by 540bps YoY to 13.8% owing to lower gross margins (-550bps YoY), which led EBITDA growth of 3% YoY to Rs 25.4 crores against our estimates of Rs 28.3 crores.PAT for the quarter was down by 12% YoY to Rs 11.4 crores against our estimates of Rs 14.4 crores.
Views: There is a sales deferral of around 20% of overall Q1 sales, which led lower growth for the quarter. Management believes it to flow during Q2FY23, which in turn improves overall visibility. Further, we expect passing on input inflation in the coming quarter to offset adversity in the operating margins. Going ahead, with new R&D unit coming on stream, one can expect meaningful development of speciality portfolio. This can expand revenue visibility further.