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IDBI Capital: GNA Axles Posts Strong Q2 Performance

GNA Axles’ Q2 revenue rose to Rs2.22 billion on the back of order wins and Meritor and domestic tractor makers, IDBI Capital says.

Rear axles sit in production line. (Photographer: SeongJoon Cho/Bloomberg)
Rear axles sit in production line. (Photographer: SeongJoon Cho/Bloomberg)

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IDBI Capital Report

GNA Axles Ltd. Q2 FY21 result was above our estimates on all parameters.

Revenue for the quarter stood at Rs 2.22 billion above our estimates on account of strong orders from Meritor and domestic tractor players.

We believe North America/South America/European market has seen strong recovery post pandemic.

We expect domestic medium and heavy commercial vehicle truck market to perform relatively better in H2 FY21 on account of economic growth recovery, higher road/construction activities and improving financial profile of fleet operators.

We expect revenue decline of 18% for FY21 due to weaker Q1, stable Q2 and strong recovery in Q3/Q4.

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IDBI Capital GNA Axles Q2FY21 Result Review .pdf

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