NESCO: Healthy growth on depressed base; recovery on the cards

News:Nesco Q2 performance witnessed a growth on depressed base. Reported revenues were up 26% YoY at Rs.80.8 crore (base had 47% decline). The IT park revenues were up 18% YoY at Rs.65.2 crore, possibly owing to increased occupancies, while exhibition revenues remained marginal. EBITDA at Rs.50.3 crore, was up 62.3% YoY and PAT at Rs. 44 crore was up 54% YoY.  

Views: We expect exhibition recovery in FY23, which will bring back the overall earnings to pre-pandemic levels. IT park occupancies are also likely to see a boost with offices resuming. Remain constructive on the company.