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Subros Q1 Review - On The Right Direction: Dolat Capital

Subros Q1 Review - On The Right Direction: Dolat Capital

Inside an air conditioner manufacturing facility in Haryana, India (Photographer: Udit Kulshrestha/Bloomberg)
Inside an air conditioner manufacturing facility in Haryana, India (Photographer: Udit Kulshrestha/Bloomberg)

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.

Dolat Capital Report

Subros Ltd. reported better than expected numbers in a Covid-19 impacted quarter.

Revenue de-grew 27% QoQ to Rs. 4.8bn mainly impacted by disruption in original equipment manufacturers sales due to lockdown restriction and weak revenue from home AC segment.

Ebitda de-grew by 58% QoQ to Rs 268 million with 410 basis points QoQ contraction in margin to 5.6% due to higher employee cost and negative operating leverage.

Subros' management indicated that outlook is improving with sharp recovery in passenger vehicles volume from June 2021 onwards and guided a double digit revenue growth in FY22.

However, uncertainty to remain high in near term due to shortage of Semiconductors.

Click on the attachment to read the full report:

Dolat Capital Subros Q1FY22 Result Update.pdf

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