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News: Total operating income for the quarter came in at ₹584 crore (up 12% YoY). EBITDA in Q4FY24 came in at ₹74 crore with corresponding EBITDA margins at 12.7% (up 90 bps QoQ). Resultant PAT for the quarter stood at ₹41.5 crore (up 39% YoY, 22% QoQ). For full year i.e. FY24, Sales stood at ₹ 2,272 crore with EBITDA at ₹ 237 crore (EBITDA margins 12%, up 30 bps YoY) and PAT at ₹ 141 crore (up 13% YoY).
Views: Margins at the company at 12.7% for the quarter were finally able to come out of the 11-5%-12% band and was encouraging in nature. The company realised sizeable operating leverage benefits amidst marginal decline in gross margins at ~70 bps QoQ. On the cash flow front, for FY24, the company generated healthy CFO to the tune of ~₹ 255 crore with capex spend for the year pegged at ~₹ 140 crore and reduction of debt at B/S by ~₹ 43 crore (company is net debt free, cash positive). We expect the stock to open positive in today’s trade and over the long-term investment horizon we like the company amid capabilities developed for content rise in instrument cluster space (premiumisation beneficiary).
Impact: Positive