- 19 May 2022
- ICICIdirect Research
COMPANY REPORTED MUTED PERFORMANCE IN Q4FY22
SANDHAR - 616 Change: -3.05 (-0.49 %)News: Sandhar Technologies (STL) reported a muted performance in Q4FY22 with EBITDA margins falling short of double digit trajectory a key disappointment. Net sales for the quarter came in at Rs. 684 crore, up 12 % YoY. EBITDA in Q4FY22 was at 63 crore, up 20% YoY with corresponding EBITDA margins at 9.2%, up 70 bps QoQ. PAT in Q4FY22 was at Rs. 18 crore, up 18% YoY. For full year basis (FY22), the company did sales of Rs. 2,324 crore, up 25% YoY with PAT at Rs. 56 crore, down 3% YoY amidst decline in EBITDA margins to ~9%, down ~100 bps YoY
Views: STL, a leading auto ancillary player, primarily serving Indian auto OEM industry through a host of product categories, such as locking systems, Al die-casting & cabins among others. 2-W space constitutes ~54% of its topline followed by PV space at ~16%. The company’s performance on the topline front is ahead of our published estimates but is not able to attain its double digit margin trajectory guidance leading to a miss on the overall profitability (our FY22 margin estimates at 11.3%). With aggressive capex spend, the debt on company’s books has also increased substantially by ~Rs. 300 crore to Rs. 516 crore as of FY22 (0.6x debt: equity)
Impact: Negative