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AIA Engineering Q3 Review - Price Hikes Offset Cost Pressures: ICICI Securities

AIA Engineering Q3 Review - Price Hikes Offset Cost Pressures: ICICI Securities

An employee grinds a section of turbine diaphragm. (Photographer Chris Ratcliffe/Bloomberg)
An employee grinds a section of turbine diaphragm. (Photographer Chris Ratcliffe/Bloomberg)

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ICICI Securities Report

AIA Engineering Ltd.’s consolidated revenue, Ebitda and profit after tax came in at Rs 8.5 billion/1.6 billion/1.39 billion (up 21%/down 6.4%/down 13.2% YoY) respectively.

It reported 11% YoY decline in volumes to 58,111 tonne for the quarter mainly due to loss of volumes from Canada and South Africa on imposition of duties in those countries.

Non-mining segment volumes saw 22% decline YoY while mining declined 5% YoY. This was partly offset by improvement in realisation, which was up 36% YoY to Rs 145/kilo gram mainly due to pass-on of raw material cost increases including freight.

Price hikes led to 21% YoY growth in revenue to Rs 8.5 billion, ahead of our estimates of Rs 7.7 billion. However, due to increase in freight and raw material costs, AIA Engineering's Ebitda margin for the quarter contracted 560 bps to 19%.

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ICICI Securities AIA Engineering Q3FY22 Results Update.pdf

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