AIA Engineering - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 1607; MCap: Rs. 15,157 crore)

AIA Engineering reported an overall decent set of numbers for Q1FY21. Revenues came in above expectation on the back of higher-than-expected volume growth in the mining segment while EBITDA margins sustained at 21.3%, amid challenging economic conditions.

Q1FY21 Earnings Summary

- AIA Engineering reported consolidated revenues at Rs. 580.3 crore (above our estimate of Rs. 460.2 crore) which declined by 20.9% on YoY basis amid economic challenges

- EBITDA came in at Rs. 123.5 crore, down 26.8% on YoY basis (vs our estimates of Rs. 71.8 crore). EBITDA margins declined marginally by 170bps on YoY to 21.3% (above our estimate of 15.6%) on account of sustained gross margins of 60.6% on YoY basis

- AIA reported PAT at Rs. 129.6 crore (above our estimate of Rs. 62.1 crore) which declined by 7.1%, YoY supported by substantial increase in other income to Rs. 74.8 crore which grew by 93.6% YoY

- Sales volume came in at 53177 MT in Q1FY21, which declined by 16.4% YoY dragged down by cement/other segment volumes. While mining segment volumes came in at 41055 MT, up 1.0% on YoY and cement & others segment volumes came in at 12112 MT, down 47.3%, YoY

AIA delivered revenues above our estimate while mining volumes and gross margins sustained despite disruptions caused by Covid-19.

We would be coming out with a detailed report post conference call.

Shares of AIA ENGINEERING LTD. was last trading in BSE at Rs.1607 as compared to the previous close of Rs. 1660.1. The total number of shares traded during the day was 5456 in over 1557 trades.

The stock hit an intraday high of Rs. 1698.45 and intraday low of 1588. The net turnover during the day was Rs. 8954313.

Source : Equity Bulls

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