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News: Nesco Q3 performance was healthy, driven by improvement in exhibition business. Reported revenues were up 24.5% YoY at ₹ 177.8 crore. The exhibition revenues at ₹ 59.3 crore was up by 33% YoY with strong demand. The IT Park revenues were up 3.1% YoY at ₹ 80.1 crore. EBITDA at ₹ 114 crore, was up 39% YoY, with margins at 64%, up 670 bps YoY (operating leverage led). PAT was at ₹ 93.7 crore was up 34% YoY aided by healthy revenues and operating profit growth.
View: With strong balance sheet (net cash of ₹ 1471 crore), healthy return ratio and recovery in exhibition business on the anvil, Nesco remains sweet spot for robust growth ahead. The company has also announced construction of new IT Tower and Hotel of 4.5 mn sq feet from Q4FY24, onwards. Furthermore, it is also modernising exhibition segment, phase wise. These steps would improve medium to long term growth visibility.
Impact: Positive