- 02 May 2024
- ICICI Securities
Overall performance came below expectations
BHARATWIRE - 271 Change: -1.80 (-0.66 %)News: Revenue declined by 9.3% YoY (-6.4% QoQ) to Rs 147.2 crore. EBITDA margin contracted by 275 bps YoY (-252 bps QoQ) to 25.4%, leading to EBITDA de-growth of 18.2% YoY (-14.9% QoQ) to Rs 37.4 crore. Adjusted PAT was down by 10.9% YoY (-17.7% QoQ) to Rs 21.7 crore. For FY24, revenue is up 5.6% YoY to Rs 621.8 crore while EBITDA is up by 18.2% YoY to Rs 164 crore (led by margin improvement by 281 bps to 26.4%). FY24 PAT is up 55% YoY to Rs 96.2 crore.
Views: Overall numbers were below expectations as the full year FY24 revenue growth of 5.6% YoY is significantly lower than management’s guidance of 15-20% growth. Moreover, FY24 EBITDA margin at 26.4% (+281 bps YoY) is also below expectations considering the management’s guidance on significant reduction in its energy cost (led by increasing usage of solar power and lower LNG prices). Going ahead, increase in sales volumes with margins improvement will be the key factors to watch out for in coming quarters.
Impact: Neutral