HDFC Securities: Sadbhav Engineering Posts In-Line Q1 Performance; Execution To Normalise By October 2020
Construction work takes place on National Highway 1, in Amritsar, India,(Photographer: Pankaj Nangia/Bloomberg News)

HDFC Securities: Sadbhav Engineering Posts In-Line Q1 Performance; Execution To Normalise By October 2020

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HDFC Securities Report

Sadbhav Engineering Ltd. reported revenue at Rs 2.3 billion, decline of 73%/44% YoY/QoQ.

Consequently, losses came in at Rs 266 million, against our estimated loss of Rs 212 million.

Labour availability has improved to 80%. Standalone order book stood at Rs 82 billion.

Although, the company could not secure any order in Q1 FY21, it has already won orders of Rs 16 billion Q2 FY21.

Net debt reduced marginally to Rs 10.6 billion (versus 11.2 billion at FY20-end).

However, with receivables of approximately Rs 18 billion, working capital still remains stretched.

Click on the attachment to read the full report:

HDFC Securities Sadbhav Engineering Q1FY21 Results Update.pdf

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