Midhani’s Margin Surprise Offsets Weak Execution In Q3: ICICI Securities 
Molten aluminum is poured into a mold to be formed into geological surveying equipment (Photographer Ty Wright/Bloomberg)

Midhani’s Margin Surprise Offsets Weak Execution In Q3: ICICI Securities 

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ICICI Securities Report

Mishra Dhatu Nigam Ltd. reported much lower topline than expected at Rs 1,901 million (our estimate Rs 2,200 million).

However, a sharp increase in gross margins (87% in Q3 FY21 from 77% QoQ) along with other expenses reducing to 25% of topline (from 30% QoQ and 37% YoY) helped in a meaningful Ebitda beat.

Q3 FY21 reported Ebitda was Rs 864 million (our estimate Rs 714 million) with Ebitda margins at 45.5%.

Ebitda margins are at all-time high (since recorded history) and highlights the pricing strength the company enjoys with some of its customers.

Click on the attachment to read the full report:

ICICI Securities Midhani Q3FY21 Result Update.pdf

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