ITD Cementation India Q2 Results Review - Mixed Quarter; Raw Material Inflation Dents Margins: Yes Securities

Yes Securities Report

ITD Cementation India Ltd. reported a mixed set of numbers, with a strong 28% YoY revenue growth at Rs 10 billion led by robust execution. Ebitda margins remained under pressure owing to elevated commodity prices and low margin Bangalore metro project while adjusted profit after tax came at Rs 200 million (including one off profit in share of joint venture of Rs 250 million).

FY23E revenue guidance remained unchanged at 25% YoY growth, with margin in high single digit, and as commodity inflation is expected to cool off in the coming quarters, margin is expected to move into lower double digits in FY24E.

ITD Cementation's order book stands at Rs 217 billion and is well-diversified, providing a natural hedge from a slowdown in any particular business segment. The net debt/equity as of Q2 FY23 stood comfortable at 0.29 times, providing room for further growth.

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