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News: Revenue increased by 6.3% YoY (flat QoQ) to Rs 159.1 crore. H1FY24 revenue growth stands at 12.4% YoY. Gross margin improved significantly by 512 bps YoY (+143 bps QoQ) to 47.1% on account of lower raw material cost. EBITDA margin improved by 530 bps YoY (+21 bps QoQ) to 26.2%, leading to EBITDA growth of 33.3% YoY (+1.2% QoQ) to Rs 41.6 crore. EBITDA margin for H1FY24 stands at 26.1% vs 20% in H1FY23. PAT increased by 58.9% YoY to Rs 24.4 crore.
Views: Significant improvement in margins during the quarter and H1 has been in-line with expectations as raw material cost and energy cost have declined considerably. Apart from decline in LNG prices on YoY basis, the company has also increased the usage of solar power which led to a sharp decline in its energy cost. However, the revenue growth of 6% was lower than expectations considering the company's guidance of 15-20% revenue growth for the full year. Going ahead, increase in capacity utilisation, sales volumes and further improvement in margins will be the key factors to watch out for in coming quarters.
Impact: Neutral