MM Forging reports healthy Q1FY23 numbers
News: Net sales for Q1FY23 came in at Rs 327 crore, up 4% QoQ. EBITDA came in at Rs 61.3 crore, up 8% QoQ with consequent EBITDA margin at 18.4% up 60 bps QoQ. PAT for quarter came at Rs29.6 crores flat QoQ. Gross margin decline was massive 176 bps QoQ and was offset by lower other expense & employee cost which declined 160 bps & 100 bps QoQ respectively.
View: Sequential flat performance on the topline front is comforting with domestic CV industry witnessing a QoQ decline. The real surprise came in from healthy margin recovery despite rise in raw material costs. With strong management guidance in the past and cyclical upswing in the domestic CV space, we expect the company to report even better numbers, going forward.