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Pricol: Deleveraging continues; mixed operational performance in Q2FY22

News: Pricol's consolidated revenues increased 28.9% QoQ in Q2FY22 to Rs.407.1 crore while margins improved 140 bps to 12% with consolidated PAT up 145% QoQ to Rs.14.6 crore.

Views: Revenue performance slightly lagged OEM industry volume uptick but the smart margin recovery was encouraging (gross margins down 210 bps QoQ). The real positive aspect of the quarter was continued deleveraging (gross total debt down by ~| 25 crore to ~| 222 crore in H1FY22 vs. ~| 247 crore in FY21). The company has said that it aims to be long term debt free over next few quarter's and progress along this front constitutes a key monitorable for Pricol.