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News: Total operating income for the quarter came in at Rs 509.7 crore, up 11.2% QoQ. EBITDA in Q4FY23 came in at Rs 61.4 crore with corresponding EBITDA margins at 11.7%, up 98 bps QoQ. Ensuing PAT for the quarter was at Rs 29.8 crore, up 11.4% QoQ. The company generated healthy CFO to the tune of Rs 166 crore for FY23 with debt further being retired by ~ Rs 40 crore in FY23 to ~Rs 90 crore.
Views: Healthy margin performance in the quarter was due to positive operating leverage wherein employee expense & other expense were down 268 bps & 14 bps QoQ, respectively, amid 162 bps QoQ decline in gross margins. The company's P/L performance beat our FY23 estimates. Going forward, with premiumisation trend gaining traction in the domestic automobile space amid technology tie-ups in the connected instrument cluster as well as BMS solutions in place, we believe the company is well positioned to record healthy and profitable growth, going forward.
Impact: Positive