- 14 Aug 2024
- ICICI Securities
HIGHER OPERATING COST DENTS OVERALL PERFORMANCE IN Q1FY25
HEG - 503 Change: -26.10 (-4.94 %)News: Topline for the quarter came in at ₹572 crore (down 15% YoY, up 4.5% QoQ). EBITDA in Q1FY25 came in at ₹39 crore with corresponding EBTDA margins at 6.8% (down 113 bps QoQ). Resultant PAT for the quarter came in at ₹ 2.6 crore. The board of directors have approved 1:5 stock split implying 1 share of face value ₹ 10 will be split into 5 new shares of face value ₹ 5 as on record date.
Views: The company’s operational performance fell short of our expectation, with EBITDA declining for four consecutive quarters. The reported margins for Q1FY25 were at 6.8% (down 113 bps QoQ) owing to high power costs and other expenses. We await the management commentary on the near-term growth prospects and improvement in profitability given the subdued demand environment and restrained steel price outlook, which are holding graphite electrode prices under check.
Impact: Negative