AIA Engineering - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 1942; MCap: Rs. 18,317 crore)

AIA Engineering reported muted set of Q4FY21 numbers. Revenues came in almost flat impacted by 3.3% YoY decline in overall volumes while EBITDA margin declined to 19.7% on the back of higher raw material cost.

Q4FY21 Earnings Summary

- AIA Engineering reported consolidated revenues at Rs. 860.2 crore (in line with our estimate of Rs. 859.6 crore) which merely grew by 0.4% on YoY basis owing to marginal decline of 3.3% in volumes on YoY basis. While realisation grew by 6% to Rs. 107.1 per kg on YoY

- EBITDA came in at Rs. 169.2 crore, which declined by 8.4% on YoY basis (vs our estimates of Rs. 190.8 crore). EBITDA margins declined 190 bps on YoY to 19.7% (below our estimate of 22.2%). Gross margin declined by 310 bps to 53% on YoY basis impacted by commodity prices

- AIA reported PAT at Rs. 133.1 crore (below our estimate of Rs. 158.6 crore) which declined by 6.5%, YoY partly impacted by lower other income which declined by 20.4% on YoY basis to 23.2 crore

- Sales volume came in reasonable at 79377 MT in Q4FY21, which declined by 3.3% YoY. Mining segment volumes declined by 9.9% to 49642 MT while Cement & others segment volumes came in at 29735 MT, up by 10%, YoY

Overall, AIA delivered reasonable volumes despite challenging business environment and restricted travel activities amid pandemic while gross margins declined owing to higher raw material costs impacting profitability for the quarter.

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

Shares of AIA ENGINEERING LTD. was last trading in BSE at Rs.1940 as compared to the previous close of Rs. 1957.45. The total number of shares traded during the day was 5066 in over 372 trades.

The stock hit an intraday high of Rs. 1988.95 and intraday low of 1934. The net turnover during the day was Rs. 9916553.

Source : Equity Bulls

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