Timken India - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 997; MCap: Rs. 7496 crore)

Timken registered weak numbers in Q1FY21. Nonetheless, PAT came in above our anticipation on account of cost rationalisation.

Q1FY21 Earnings Summary

- Revenue for the quarter came in at Rs. 160.2 crore, down 63.4% YoY (vs. I-direct estimate of Rs. 178.9 crore). Nationwide lockdown, supply chain disruption led the fall in topline

- Gross margins expanded ~160 bps on account of supplementary sales from inventory. However, negative operating leverage impaired the operating performance, as Timken registered an EBIDTA margin of 8.8% vs 21.7% YoY. Absolute EBIDTA came in at Rs. 14.1 crore, down 85% YoY

- Employee cost declined 15.5% YoY to Rs. 26.2 crore. Other expenses declined 52.2% to Rs. 36.2 crore

- Tracking it's operating performance, Timken ended the quarter with a PAT of Rs. 3.15 crore. Other income came in at Rs. 7.8 crore, up 85.7% YoY

We would come out with a detailed report post the conference call.

Shares of TIMKEN INDIA LTD. was last trading in BSE at Rs.956.5 as compared to the previous close of Rs. 996.55. The total number of shares traded during the day was 5496 in over 1039 trades.

The stock hit an intraday high of Rs. 999.05 and intraday low of 955. The net turnover during the day was Rs. 5369961.

Source : Equity Bulls

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