Axis Securities: Safari Industries Posts A Washout Q1; Uncertain Times Ahead

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Safari Industries India Ltd. Q1 FY21 result was an all round miss versus our estimates. Q1 which is typically a peak season for the company was adversely hit by the pandemic leading to a revenue decline of 90% YoY tp Rs 20 crore (Rs 50 crore our estimate).Benign raw material prices and better product mix led to gross marign expansion of 440 basis points YoY to 44.2% (43.5% our estimate).Desptie healthy gross margin performance, the company reported loss at the operating level. Ebitda Loss was Rs 19 crore owing to higher fixed costs on account of a lower topline.As a result, the reported net loss stood at Rs 19 crore versus a net profit in Q1 FY20.While, management indicated a month on month improvement in demand, uncertainty on growth continues given the fluid situation regarding Covid-19 and its containment.To factor in near term pressure on demand we revise FY22 revenue/profit after tax estimates downwards by 4%/12%..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Axis Securities: Safari Industries Posts A Washout Q1; Uncertain Times Ahead

Axis Securities: Safari Industries Posts A Washout Q1; Uncertain Times Ahead

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