Ador Welding: Reports reasonable set of Q2FY22 numbersADORWELD - 1438 Change: -6.20 (-0.43 %)
News: For Q2FY22, Ador Welding (AWL) reported consolidated revenues at Rs.159.5 crore which grew by 66.2% on YoY surpassing pre-covid level by better performance in consumables and equipment business. EBITDA came in at Rs.13 crore (Vs. loss of Rs.4.8 crore in Q2FY21) aided by reduced losses in flares & process equipment business. EBITDA margin came to 8.2% declining by 50bps on QoQ basis. While, gross margins for Q2FY22 declined by 170 bps to 27.4% on YoY basis. Adj. PAT came in at Rs.9.6 crore (Vs. net loss of ~ Rs.5.6 crore in Q2FY21), amid higher other income. It reported exceptional gains worth ~Rs.7.2 crore.
Views: Ador Welding reported a reasonable set of Q2FY22 numbers. Revenue grew by 66.2% aided by better growth in consumable & equipment business. On margin front, Consumables business operating margins saw some impact while Equipment margins improving sequentially as well as YoY while Flares & Process equipment business is yet to make significant contribution to profitability post restructuring efforts in Q4FY21.