- 09 Nov 2023
- ICICI Securities
REPORTS MUTED PERFORMANCE IN Q2FY24...
HEG - 504 Change: -1.50 (-0.30 %)News: Topline for the quarter came in at ₹ 614 crore, down 9% QoQ. EBITDA in Q2FY24 came in at ₹ 103 crore (down 43% YoY, 32% QoQ) with EBTDA margins at 16.7%. EBITDA margins in Q2FY23 stood at 29.9% while in Q1FY24 it stood at 22.6%. Ensuing PAT for the quarter came in at ₹62 crore, down 52% YoY and 37% QoQ.
Views: Margin decline for the quarter was steep and was already hinted by the management in the last con-call. 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.
Impact: Negative