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News: Revenue increased by 8.9% YoY (-1.2% QoQ) to Rs 157.2 crore, mainly led by 10% YoY growth in sales volume. EBITDA margin improved by 244 bps YoY (+175 bps QoQ) to 27.9%, leading to EBITDA growth of 19.4% YoY (+5.4% QoQ) to Rs 43.9 crore. PAT increased by 39.4% YoY (+7.9% QoQ) to Rs 26.3 crore. For 9MFY24, revenue growth stands at 11.2% YoY while EBITDA is up by 36% YoY during the period as margin improved significantly to 26.7% (vs 21.8% in 9MFY23).
Views: Significant improvement in margins during Q3FY24 & 9MFY24 has been in-line with expectations as raw material cost and energy cost have declined considerably. lower LNG prices on YoY basis and increase in usage of solar power have led to a sharp decline in its energy cost. However, revenue growth of 8.9% YoY during the quarter (and 11.2% for 9M) has been lower than expectations, considering the company's guidance of 15-20% revenue growth for full year. Going ahead, increase in capacity utilisation, sales volumes and further improvement in margins will be the key factors to watch out for in coming quarters.
Impact: Positive