- 16 Aug 2022
- ICICIdirect Research
Vesuvius India posts good set of Q1FY23 numbersVESUVIUS - 1595 Change: -24.90 (-1.54 %)
News: Vesuvius India (VIL) reported revenues at Rs 329.7 crore up 21.2% YoY aided by better demand in steel, cement. EBITDA came in at Rs 41 crore, grew by 47.4% on YoY basis. EBITDA margins improved 221bps on YoY to 12.4% and 172 bps QoQ, gross margins also increased 290 bps to ~42% YoY. VIL reported PAT at Rs 29.4 crore, up 52% YoY, improved by good margins.
View: Overall, VIL’s revenue saw improvement led by better demand in sectors like steel, cement, which consumes more than 80% of refractories products. Vesuvius is well placed to capture domestic market share through focus on localised manufacturing and new product launches driving faster growth. Additionally, Higher steel production and technological advancement is expected to further drive refractories demand. At the end of Q2CY22, CWIP was at Rs 80.46 crore vs. Rs 27.1 crore in Q4CY21. Commissioning of the same will lead to strong revenue uptick over the next two to three years.