BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Everest Kanto Cylinder Ltd.’s Q2 FY23 result was lower than our expectations. Its sales fell by 11% QoQ to Rs 3,397 million mainly led by weak demand and rising competition.
Nevertheless, Industrial segment reported stable performance which supported the topline from further downfall.
Ebitda stood at Rs 359 million (down 41% QoQ, down 68% YoY) and Ebitda margin contracted 1,590 bps YoY to 11% on account of lower topline growth and negative operating leverage.
Everest Kanto Cylinder’ net profit fell by 74% YoY at Rs 185 million. Sharp rise in prices of compressed natural gas across India has led to lower demand for CNG vehicles.
Hence, we lower our FY23/24 sales forecasts by 12%/9%. Our FY23/24 Ebitda forecast stand lower by 29%/26%.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
