- 05 Nov 2022
- ICICIdirect Research
Elgi Equipment’s reported decent performance in Q2FY23ELGIEQUIP - 468 Change: -12.20 (-2.54 %)
Consolidated revenue grew by 13.3% YoY to Rs 738.7 crore vs. our estimate of Rs 790 crore. Standalone revenue (Domestic & direct exports compressor) grew by 7.7% YoY to Rs 448.5 crore (~61% of consolidated topline) amid led by good demand in domestic market and better exports despite challenges, the automotive (ATS) segment revenue grew by 4.24% to Rs 56 crore, YoY
· EBITDA margins came strong at 15.2% in Q2FY23 (above our estimates of 12.3%) thanks to price hikes taken by company. Consequently, Absolute EBITDA grew by 40.5% to Rs 112.6 crore on YoY basis (vs. above our estimates of Rs 97.1 crore) with gross margins of 50% vs 44.4% in Q2FY22
· PAT came in at Rs 71.9 crore (above our estimates of Rs 62.4), grew by 39.4% on YoY aided by strong operational performance
Elgi Equipments registered decent topline growth witnessing by domestic markets continued improvement in performance. ATS business registered tepid growth and expected to improve gradually in the long run. Overall, the company continues to surprise on the upside with every passing quarter as it makes inroads in international markets.