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News: Consolidated revenue for the quarter came in at ₹2,427 crores, flattish YoY. EBITDA for the quarter stood at ₹361 crores with corresponding EBITDA margins at 14.9% up 30 bps QoQ. On the standalone basis, topline for the quarter came in at ₹1,165 crore, up 2% YoY. EBITDA stood at ₹192 crore with EBITDA margins at 16.5%, up 120 bps QoQ.
Views: Company’s topline performance came in below our expectations with its Europe sales declining ahead of the market decline. Margins however surprised positively primarily led by outperformance at its Indian operations which reported margins of 18.7% (normalized to 17.2% vs. its usual range of ~16.5%). From a longer degree perspective, we have a positive view on the company primarily tracking healthy growth prospects at its Indian operations, efficiencies at bay at its European business, improving margins and return ratios profile and consistent healthy cash flow generation.
Impact: Neutral