Subros Q2 Review - Near-Term Blip; Long-Term Prospects Remain Positive: Dolat Capital
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. displayed weak margin performance in Q2 due to several headwinds like commodity inflation and increase in logistic cost (high container and diesel cost).
Revenue grew 15% YoY to Rs 5.29 billion led by incremental revenue from Mahindra & Mahindra Ltd.'s Thar and recovery in bus and truck Aircon business.
Ebitda de-grew by 35% YoY to Rs 347 million. Subros' management stated that semiconductor and commodity inflation challenges to persist in near term and Q3 number to be same as Q2.
Although shortage of semiconductor is an overhang for passenger vehicles production in near term, we expect passenger vehicle demand continue to be strong for the next two years led by recovery in economy, strong waiting period of cars and low inventory worldwide.
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.