- 14 Aug 2023
- ICICI Securities
HEALTHY REVENUE GROWTH NEGATED BY LOWER MARGINS AND HIGHER INTEREST COST
NRBBEARING - 244 Change: -3.19 (-1.29 %)News: Revenue increased by 15.2% YoY (-12.9% QoQ) to Rs 272.0 crore. EBIDTA margin contracted by 150 bps YoY (-391 bps QoQ) to 16.7%. Subsequently, EBIDTA increased by 5.7% YoY (-29.5% QoQ) to Rs 45.4 crore. Interest cost was at Rs 6.4 crore vs Rs 3.4 crore in Q1FY23 which led to PAT decline by 22.4% YoY (-45.7% QoQ) to Rs 19.0 crore.
Views: Operational performance during the quarter was largely subdued on account of lower margins and higher interest cost which negated the impact of better revenue growth. Going ahead, with focus on improving the product mix towards e-mobility agnostic products, we believe that company’s growth from domestic automotive segment will remain healthy in the coming period. Moreover, recovery in exports will also be a key driver as it contributes significantly to the company’s revenues.
Impact: Neutral