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- 16 May 2023
- ICICI Securities
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VESUVIUS INDIA REPORTS STRONG Q1CY23 NUMBERS
VESUVIUS - 539 Change: -3.00 (-0.55 %)News: In Q1CY23, Vesuvius India (VIL) reported revenues at Rs 368 crore, up 18% YoY aided by better demand in steel, cement. It grew 5.6% QoQ. Q1CY23 EBITDA came in at Rs 55 crore, up 65% YoY and 39.2% QoQ. EBITDA margins expanded 425bps YoY to 15% and 361 bps QoQ, gross margins expanded by 310 bps to ~41.5% YoY and 210 bps QoQ. VIL reported Q1CY23 PAT at Rs 43.4 crore, up 83.5% YoY and 56.8% QoQ partly supported by other income, which grew 102% YoY to Rs10.7 crore. Recently, its British parent - Vesuvius Group, announced a minimum investment of Rs 500 crore in various Indian manufacturing facilities in the coming three to fiver years, its current (CY22) gross block was at Rs 351 crore vs. CY21 Rs 253 crore.
Views: Overall, VIL’s revenue saw strong growth led by better demand in sectors like steel, cement, which consumes more than 80% of refractories products. Going forward, 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. The company is focused on capturing domestic market share through faster growth in the manufactured goods segment through localised manufacturing and new product launches.
Impact: Positive