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News: Standalone revenues for the quarter came in at ₹ 2,338 crore up 10% YoY, amid flattish tonnage growth at 67,501 tonnes. Standalone EBITDA in Q1FY25 stood at ₹ 652 crore, with consequent margins placed at 27.9%, down 40 bps QoQ. Reported standalone PAT stood at ₹ 269 crore (impacted by write down of investment in Tork Motors). On consolidated basis, EBITDA margins stood at 18% (up 360 bps QoQ). On the consolidated basis, PAT stood at ₹ 175 crore in Q1FY25 vs. ₹ 214 crore in Q1FY24 and ₹ 227 crore in Q4FY24.
Views: Defence sales was ~₹ 640 crores in Q1FY25 (vs. ~₹ 560 crore in Q4FY24). With order wins of ₹ 775 crores, the executable order book as of Q1FY25 end in this domain stands at ₹ 5,400 crores, with a mix of Artillery Guns, vehicles and consumables. With turnaround in sight at its overseas businesses and robust outlook for its domestic business including defence, long term growth outlook for the company is healthy. On the valuation front, however it now trades a tad expensive at >30PE and ~20x EV/EBITDA on FY26E basis with RoCE profile of ~15-20%.
Impact: Neutral