Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
Manage your Savings, Demat and Trading Account conveniently at one place
News: Profitability remains muted during the quarter on account of contraction in margins due to higher trade sales and increase in others cost. Revenue growth of ~11% is possibly driven by better growth in industrial segments like railways, heavy industries & metals (industrial segment is ~51% of total revenue). Going ahead, we expect that company’s operational performance to improve over FY25-26E, led by strong demand traction from higher-growth segments like railways, renewables, industrials, automobile (2W & PV) and gradual recovery in exports. Moreover, company targets to increase localization in the industrial segments to 60% over the next few years (from 40-45% at present), which will help the company in securing more orders and margin improvement.
Views: Profitability remains muted during the quarter on account of contraction in margins due to higher trade sales and increase in others cost. Revenue growth of ~11% is possibly driven by better growth in industrial segments like railways, heavy industries & metals (industrial segment is ~51% of total revenue). Going ahead, we expect that company’s operational performance to improve over FY25-26E, led by strong demand traction from higher-growth segments like railways, renewables, industrials, automobile (2W & PV) and gradual recovery in exports. Moreover, company targets to increase localization in the industrial segments to 60% over the next few years (from 40-45% at present), which will help the company in securing more orders and margin improvement.
Impact: Neutral