BMW Industries Ltd reports third quarter results for financial year 2023-24

BMW Industries Limited (herein referred to as "BMWIL"), one of the most trusted names in the steel processing industry, announced its Q3 FY24 results today. The Board of Directors of BMWIL at its meeting held on 11th February 2024 took on record the Unaudited Financial Results for the third quarter of Financial Year 2023-24.

Total Income and Gross Profit:

Total Income: BMW Industries reported a total income of ₹14,519 lacs in Q3 FY24, showing a modest increase of 1.7% compared to ₹14,276 lacs in Q3 FY23. However, there was a significant decline of 9.9% from ₹16,117 lacs in Q2 FY24. For the nine-month period, the total income stood at ₹46,493 lacs, marking a growth of 7.5% compared to the same period last year.

Gross Profit: The company's gross profit for Q3 FY24 was ₹9,818 lacs, reflecting a slight increase of 1.8% from ₹9,646 lacs in Q3 FY23. However, there was a notable decline of 3.0% from ₹10,125 lacs in Q2 FY24. For the nine-month period, the gross profit reached ₹30,191 lacs, showing a robust growth of 16.4% compared to the previous year.

EBITDA and Net Profit:

Adjusted EBITDA: BMW Industries reported an adjusted EBITDA of ₹4,369 lacs in Q3 FY24, up by 3.7% from ₹4,213 lacs in Q3 FY23. Sequentially, there was a growth of 7.3% from ₹4,070 lacs in Q2 FY24. For the nine-month period, the adjusted EBITDA stood at ₹12,212 lacs, reflecting a strong growth of 14.7% compared to the same period last year.

Net Profit: The company's net profit for Q3 FY24 was ₹1,149 lacs, showing a decline of 33.6% from ₹1,729 lacs in Q3 FY23. Similarly, there was a decrease of 35.0% from ₹1,767 lacs in Q2 FY24. However, for the nine-month period, the net profit reached ₹4,472 lacs, indicating a notable growth of 17.1% compared to the previous year.Milestones Achieved in Q3 FY24

Total Income:

- Total income at ₹ 14,519 Lacs for Q3 FY24, registering an increase of 1.7% YoY

Gross Profit:

- Gross Profit at ₹ 9,818 Lacs, up 1.8% over Q3 FY23. Gross Margin was at 68.2%

Adjusted EBITDA:

- Adjusted EBITDA at ₹ 4,369 Lacs in Q3 FY24, up 3.7% YoY. Adjusted EBITDA Margin was at 30.1%

PAT:

- PAT at ₹ 1,149 Lacs against Q3 FY23 PAT of ₹ 1,729 Lacs, down 33.6%. PAT Margin was at 7.9%

- EPS stood at ₹0.51 as against ₹0.77 in Q3 FY23

Net Debt:

- Net Debt stood at ₹ 17,579 Lacs as against ₹24,180 lacs in Dec'22

- Net Debt / EBITDA improved further to 1.92 from 3.03 in Dec'22

Commenting on the results, Mr. Ram Gopal Bansal, Chairman, BMW Industries Limited said: "Total income grew by 1.7% YoY to ₹ 14,519 lacs in Q3FY24. However, the total income fell by 9.9% QoQ largely due to fall in Zinc prices, which is a pass through.

Gross profit has risen to ₹ 9,818 lacs from₹ 9,646 year on year. Gross Profit margin has increased slightly from 68.0% in Q3 FY23 to 68.2% in the quarter gone by. In fact, GP margin grew sharply by 470 basis points QoQ.

Adjusted EBITDA increased by 3.7% YoY and 7.3% QoQ to ₹ 4,369 lacs and Adjusted EBITDA margin stood at 30.1%, expanding by 58 bps YoY and 484 bps QoQ.

The overall profit for the quarter got impacted by a one-time debit note amounting to ₹ 1,073 lacs from our key customer. The company decided to settle an old dispute and took this hit, keeping in view our long-standing relationship with the customer. Consequently, PAT fell from ₹ 1,729 lacs in Q3 FY23 to ₹ 1,149 lacs in the quarter gone by. Our net debt improved from ₹ 22,998 lacs in FY23 to ₹ 17,579 lacs in Q3 FY24.

We continue to prioritize maximizing our capacity utilization, and this, combined with our expansion plan, will significantly contribute to achieving robust revenue growth. Our net debt is steadily decreasing, and alongside our strong revenue growth, this will enable us to significantly improve profits and secure sustainable margins."

Shares of BMW Industries Ltd was last trading in BSE at Rs. 71.15 as compared to the previous close of Rs. 73.07. The total number of shares traded during the day was 896587 in over 2544 trades.

The stock hit an intraday high of Rs. 73.88 and intraday low of 69.15. The net turnover during the day was Rs. 63615319.00.

Source : Equity Bulls

Keywords

BMWIndustries INE374E01021 Q3FY24 9MFY24 ResultUpdate