Dolat Capital: Suprajit Engineering - On A Recovery Path
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Dolat Capital Report
Suprajit Engineering Ltd. reported decent numbers amid tough market conditions. Revenue for Q1 FY21 de-grew by 51% YoY to Rs 1.77 billion due to production cuts taken by various original equipment manufacturers owing to lockdown.
Ebitda turned negative to Rs 48 million (versus estimated loss Rs 100 million).
Phoenix lighting revenue de-grew 49% YoY to Rs 337.3 million while Suprajit Engineering (non-automotive cable) numbers beat estimates, benefited from temporary supply disruption of its one of competitors.
Revenue de-grew 24% YoY to Rs 632.9 million while the company was able to manage a positive margin at 6.3%.
Management stated that outlook for Q2 is promising with domestic OEM sales back to 90-95% of pre-Covid level.
Strong traction was witnessed in the aftermarket demand with growth reported in the months of June and July on a YoY basis.
At Wescon, July and August volumes are back to last years’ level with pickup in demand.
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