- 31 Jul 2023
- ICICI Securities
-
Share
-
-
-
-
-
STRONG EXECUTION CONTINUES; PAT WAS UP 3.6X YOY IN Q1FY24
ANUP - 2680 Change: 13.00 (0.49 %)News: Anup Engineering (AEL) reported strong performance in Q1FY23. Revenue increased significantly by 141.8% YoY (-13.2% QoQ) to Rs 125.2 crore. Gross margin improved to 54% (+462 bps) led by lower raw materials cost. EBITDA margin improved by 416 bps YoY (+143 bps QoQ) to 22.4%, supported further by positive operating leverage. EBITDA increased by 197.1% YoY (-7.2% QoQ) to Rs 28 crore. Thus, on account of strong revenue growth and improvement in margins, PAT was up significantly by 3.6x YoY (-4.6% QoQ) to Rs 18.6 crore.
Views: Order backlog stood at Rs 651 crore as of June 2023 end, implies order inflow at Rs 245 crore during Q1FY24. Management’s guidance for FY24E remains strong with Rs 600-650 crore of orders inflows in FY24E, revenue of Rs 520-530 crore (implies ~30% YoY growth) and EBITDA margin of 22-23% (vs 20.1% in FY23) in FY24E. Demand outlook for company’s products (heat exchangers, vessels, reactors) from domestic & export markets remains strong led by huge capex planned in sectors like oil & gas/petrochemicals. Moreover, expansion of Kheda facility and focus on new products & increasing exports share, we believe there is strong growth ahead for the company.
Impact: Positive