- 07 Feb 2023
- ICICIdirect Research
SANSERA REPORTS MUTED PERFORMANCE IN Q3FY23
SANSERA - 1240 Change: 10.50 (0.85 %)News: The company reported a muted performance in Q3FY23 wherein topline for the quarter came in at Rs 557 crore, down 12% QoQ. EBITDA came in at Rs 86.7 crore, down 18.4% QoQ with margins coming 15.6% (down 120 bps QoQ). Resultant PAT for the quarter stood at Rs 31.3 crore, down 33.3% QoQ
Views: Key positive from the quarterly results was sequential gross expansion for the quarter, which was up 273 bps but was offset by negative operating leverage where in employee expense & other expense were up 216 bps & 130 bps QoQ respectively. On a broader investment horizon perspective however company is traversing well onto its path of diversifying its sales mix towards more powertrain agnostic & EV components. It is presently trading at reasonable valuations i.e. ~19x on FY24E with controlled leverage on B/S with Debt: Equity at 0.6x and double digit return ratios profile
Impact: Negative