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AIA Engineering Q2 Review - Unfavourable Canadian Outcome To Impact Growth: ICICI Securities

AIA Engineering Q2 Review - Unfavourable Canadian Outcome To Impact Growth: ICICI Securities

An employee grinds steel edges of a ski on a production line in Austria. (Photographer: Lisi Niesner/Bloomberg)
An employee grinds steel edges of a ski on a production line in Austria. (Photographer: Lisi Niesner/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities AIA Engineering Q2FY22 Results Update.pdf

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