- 03 Nov 2022
- ICICIdirect Research
JAMNA AUTO POSTS MUTED SET OF NUMBERS FOR Q2FY23
JAMNAAUTO - 88 Change: -1.05 (-1.18 %)News:
Consolidated sales for the quarter came in at Rs 553 crore, up 1% QoQ, EBITDA came in at Rs 56 crore, down 7% QoQ with corresponding margins at 10.2%, down 80 bps QoQ. Consequently, PAT came in at Rs 37.3 crore, flat QoQ
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The company’s performance is a proxy of Indian M&HCV volumes. The performance on the topline front was satisfactory with flat QoQ sales amid ~8% production decline for the industry. However, disappointment came in on the margin profile. Muted margin performance was due to muted gross margin which declined 270 bps QoQ but was partially mitigated by lower other expense which were down 170 bps QoQ. With decline in steel prices, we expect margins at the company to recover starting Q3FY23. Over the medium term company remains committed towards its target of achieving 50% RoCE by FY26E
Impact:
Neutral