AIA Engineering Q4 Review - Structural Story Intact; Near-Term Headwinds Persist: Dolat Capital
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AIA Engineering Q4 Review - Structural Story Intact; Near-Term Headwinds Persist: Dolat Capital

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Dolat Capital Report

AIA Engineering Ltd. reported revenue of Rs 8.6 billion, flat YoY (up 19% versus our estimates) as sales volume dropped by 3% YoY while realisation improved by 6% YoY.

Ebitda dropped by 8% YoY to Rs 1.7 billion (up 5% versus our estimates) mainly due to higher raw material expense resulting in contraction of Ebitda margin by 189 basis points to 19.7% (our estimates of 22.5%).

Ebitda/kg has dropped by 5% YoY to Rs 21.3. Adjusted profit after tax declined by 5.6% YoY to Rs 1.3 billion (up 7.5% versus our estimates).

We believe company enjoys significant competitive advantage by having manufacturing base in India, which helps company price its products relatively cheaper to its competitors.

Click on the attachment to read the full report:

Dolat Capital AIA Engineering Q4FY21 Result Update.pdf


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