AIA Engineering Q2 Review - Unfavourable Canadian Outcome To Impact Growth: ICICI Securities
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ICICI Securities Report
AIA Engineering Ltd. reported a flat 0.7% YoY growth in volumes to 69,064 tonne for Q2 FY22. Mining segment volumes grew a meagre 3.4% while non-mining segment declined 5%, YoY.
Due to price hike and favourable product mix, realisation grew 18% YoY to Rs 128/kg. However, due to increase in freight and raw material cost, AIA Engineering's Ebitda margin for the quarter contracted 730 basis points to 18.3%.
The new client engagement is expected to pick pace as pandemic-induced travel restrictions get lifted.
However, the unfavorable outcome of import duty of ~22% imposed by the Canadian International Trade Tribunal mars the near-term growth outlook.
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