News: Topline for the quarter came in at ₹ 562 crore, down 8% QoQ. EBITDA in Q3FY24 came in at ₹ 87 crore (down 35% YoY, 15% QoQ) with EBTDA margins at 15.4%. EBITDA margins in Q3FY23 stood at 25.1% while in Q2FY24 it stood at 16.7%. Ensuing PAT for the quarter came in at ₹37 crore, down 64% YoY and 40% QoQ.
Views: Margin decline for the company continued and is a cause of concern. We await management commentary on margin recovery. The stock might see negative price action in today’s trade. However, over the long-term investment horizon, given the global shift towards EAF route of steel making and limited capacity addition in graphite electrode space as well as company putting up sizeable capex in manufacturing raw material for Li-On cells, we hold a positive view on the company.
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