News: Net sales for the quarter came in at Rs 721 crore, up 5.4% QoQ. EBITDA in Q1FY23 was at Rs 51 crore with corresponding EBITDA margins at 7.1%, up 160 bps QoQ. Consequently, PAT came in at Rs32.9 crores up 22% QoQ.
View: The company began the year on a positive note with margin performance a key surprise and was a beat to our estimates (6.5% for FY23E). Margin performance was due to savings were realized on the RM costs as well as other expenses which were down 140 bps & 10 bps QoQ respectively. We remain positive on stock amidst healthy b/s, EV agnostic product profile and presence with major new age auto OEM’s in the EV space.
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