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ICICI Securities: Midhani Posts Decent Topline Q1 Performance; Steady Tidings

With nearly 80% of its orderbook comprising of space orders, Midhani Dhatu Nigam is likely to have space-heavy execution in FY21.

Super Alloys for energy sector manufactured by Midhani Ltd. (image: Company website)
Super Alloys for energy sector manufactured by Midhani Ltd. (image: Company website)

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ICICI Securities Report

Mishra Dhatu Nigam Ltd. has reported a decent topline performance in Q1 FY21 at Rs 1.14 billion (down 14% YoY).

The reduction in topline reflects 45 days of shutdown in Q1. There has been a meaningful compression in gross margins from the quarterly runrate of FY20 - perhaps due to order mix.

Q1 FY21 would have been defence heavy to result in gross margins declining from 91% to 64% YoY.

Given the breakup in FY20-end orderbook, with approximately 80% of orderbook comprising of space orders - FY21 execution for Midhani will be space heavy.

We have seen a new timeline for Chandrayan III – with lander and rover and no orbiter.

Budget allocation across Government of India ministries should expectantly come down in H2 FY21 – defence, space irrespective.

However, the relatively smaller size of the space budget may still allow it to see lower contraction.

Click on the attachment to read the full report:

ICICI Securities Midhani Q1FY21 Result Update.pdf

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