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News: Revenues came in at Rs 1872 crore, up 18.3% YoY driven by the product segment which grew by 40% YoY to Rs 1486 crore, while services declined by ~24% YoY% QoQ to Rs 382 crore, as company continues to prioritise profitable segments. Reported EBITDA came in at Rs 256 crore, up 1.8x YoY, with EBITDA margins at 13.7% (up 790 bps YoY and 76 bps, driven by revenues mix as product segment has superior margins. Adjusted for loss from discontinued operation PAT was at Rs 82 crore witnessing strong growth.
Views: On expected lines, the sequential improvement in business operation has continued for the company led by strong demand momentum in the product (fibre cable). The company has guided for 10-12% revenue growth in FY24 with margins expansion and debt reduction. However, it expects H1FY24 to witness muted demand as US telcos spending will be muted amid higher inventory with them and likely to improve by H2. It also intends to demerge product and services segment for better growth without capital constraints.
Impact: Neutral