- 05 Aug 2024
- ICICI Securities
Nesco Q1FY25: Muted Performance
NESCO - 975 Change: -20.55 (-2.06 %)News: Nesco performance was muted with few exhibition halls being used for elections. Reported revenues were up ~3.5% YoY at ₹ 141 crore. The exhibition revenue at ₹ 24.2 crore, was down 18.8% YoY with non-availability of few halls due to elections. The IT Park revenues were up 20.4% YoY at ₹ 88 crore. Hospitality (foods) revenues were also down 13.7% at ₹ 19 crore, owing to weak exhibition. EBITDA at ₹ 86 crore, was flat YoY, with margins at 60.9%, down 207 bps YoY (given the muted revenues). PAT at ₹ 69.8 crore was down 8.3% YoY.
Views: With strong balance sheet (net cash of over ₹ 1500 crore), healthy return ratio and exhibition business back to growth trajectory, Nesco remains sweet spot for robust growth ahead. The company is also undertaking construction of new IT Tower and Hotel of 4.5 mn sq. feet., which would improve medium to long term growth visibility.
Impact: Neutral