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News: Consolidated revenues for the quarter came in at ₹ 3,093 crore, up 21% YoY amidst <5% OEM volume growth in the industry. Consolidated EBITDA for Q1FY24 stood at ₹ 330 crore, with attendant margins at 10.7%, down 40 bps QoQ. Reported consolidated PAT for the quarter stood at ₹ 172.5 crore, down 6% QoQ.
Views: Margin performance was the key negative surprise at MIL with real damper being rise in other overhead costs amidst stable gross margins. On the topline front, however the company maintained its trend of outperforming the underlying industry with persistent focus on content increase and tangible work being done on the EV components front. It is also well equipped to capture the premiumisation trend in PV space with presence in alloy wheel, LED lighting, airbags and other such segments. At this juncture, we have a neutral view on the company amidst high valuations at which it trades (~31x P/E on FY25E).
Impact: Negative