Midhani’s Margin Surprise Offsets Weak Execution In Q3: ICICI Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
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:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.