- 30 May 2022
- ICICIdirect Research
Timken posts stellar set of number for exit quarter
TIMKEN - 3757 Change: -64.65 (-1.69 %)News: For Timken, revenue for the quarter came in at Rs 667.4 crore, up 40.4% YoY & 30.9% QoQ (vs. I-direct estimate of Rs 553.7 crore). Gross margins expanded ~160 bps YoY & ~500 bps QoQ. Timken registered an EBIDTA margin of 26.9% vs 18.3% YoY & 22.4% QoQ (vs. I-direct estimate of 19.9%) Surprise in EBITDA margin come in due to higher gross margins, lower employee cost and other expenses. Absolute EBIDTA came in at Rs 179.8 crore, up 57.6% QoQ (I-direct estimate of Rs 110.7 crore). Employee cost increased 10.6% YoY & 5.5% QoQ and was at Rs 36.4 crore, Other expenses increased 18.3% QoQ and were at Rs 102.3 crore. Tracking its operating performance, Timken ended the quarter with a PAT of Rs 121.3 crore (vs. I-direct estimate of Rs 68.1 crore), up 73.9% QoQ.
Views: Timken posted a stellar set of number for Q4FY22 primarily led by growth in industrial segment. Improved gross margins were due to price hike coupled with decent contribution from service segment. EBITDA margins also increased due to operating leverage thus positively impacting PAT. Going forward, Timken is expected to perform better with sustainable margins, new product launches and better performance in Indian CV & PV segment.
Impact: Positive