Endurance Technologies Q2 Review - New Opportunities To Accelerate Growth: Nirmal Bang
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Nirmal Bang Report
Endurance Technologies Ltd.’s consolidated revenue came marginally below our estimate (by ~2.6%), mainly due to the decline in car production in Europe amid the ongoing semiconductor shortage.
Standalone revenue increased by ~16.4% YoY (~30% YoY) to ~Rs 15 billion, in-line with our estimate and much better than the ~4.5% YoY decline in domestic two-wheeler industry volume.
Revenue from European operations declined by ~19.5% YoY. Consolidated Ebitda margin at 13.8% was a miss (by 120 basis points), largely due to raw material cost pressure and negative operating leverage (on lower-than-expected revenue in Europe).
Endurance Technologies' gross margin in India/Europe businesses declined by ~140 basis points/~480 bps QoQ mainly due to steep raw material cost inflation. Consolidated adjusted profit after tax stood at Rs 1.33 billion, up 10.5% YoY and down 20.2% QoQ.
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