Recommendation: buy
Target price: Rs 3,120
The company saw a sequential improvement in volumes, due to the easing of the semiconductor shortage. VECV volumes grew in double digits, both sequentially and in the prior year quarter. The price increases implemented appear to be sufficient to fully offset the pressures on input costs. Consolidated turnover could grow by 8.2% compared to the quarter of the previous year.
While gross margin may remain flat, EBITDA margin may improve, both sequentially and in the prior year quarter. Part of the margin gains would be due to the low base in the December 2021 quarter. During this quarter, the margin saw a one-time impact of around 200 basis points (lumpy launch costs). Consolidated EBITDA margin is estimated at 22.7%, up 115 basis points from the prior year quarter.
Consolidated profit after tax (PAT) growth is set at 16.2% on an annual basis.
Important management information to monitor:
- Demand outlook across all segments and markets
- Margin levers
AUTONOMOUS
|
million rupees |
March 2022 estimates |
Annual change |
QoQ change |
| Revenue | 31,398 | 7.4% | 10.6% |
| EBITDA | 7,222 | 12.2% | 24.2% |
| EBITDA margin | 23.0% | 97 basis points | 252 basis points |
| Profit after tax | 5,277 | 12.7% | 25.0% |
Source: IIFL Research
CONSOLIDATED
|
million rupees |
March 2022 estimates |
Annual change |
QoQ change |
| Revenue | 31,820 | 8.2% | 10.5% |
| EBITDA | 7,231 | 14.0% | 24.2% |
| EBITDA margin | 22.7% | 115 basis points | 251 basis points |
| Profit after taxes | 6,113 | 16.2% | 34.0% |
Source: IIFL Research
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