News: The company posted healthy numbers for Q1FY23 with topline coming at Rs3544 crores, up 7% QoQ. EBITDA came in at Rs449.5 crores with margins at 12.7% down ~46 bps QoQ. Consequently, PAT was at Rs334 crore, down 5% QoQ.
Views: Margins as well as topline performance was better than our expectation. Decline in margin was due to rise in other expense which rose ~50 bps QoQ. Growth in topline was led by automotive segment whereas consumer durables segment witnessed 30% sequential de-growth. EBIT margins at automotive division improved 174 bps QoQ at 13.6% whereas for the consumer durable declined 320 bps QoQ. The company remains a key beneficiary of regulation led increase in stringent emission norms across vehicle categories domestically.
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