Asahi India Glass Q3 Results Review - Profitability Back To Long-Term Mean Levels: ICICI Securities

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. .ICICI Securities Report.Asahi India Glass Ltd.’s Q3 FY23 Ebitda margin came in at 19.6% (down ~250 basis points QoQ). The decline was due to 180 bps contraction in gross margin, post falling ~400 bps QoQ in Q2 FY23. ‘Power and fuel cost to sales’ remained steady QoQ and 50 bps increase in ‘other expenses to sales’ added to Ebitdam decline beyond gross margin. We believe gross margin compression is attributable to adverse currency moves and adverse input commodity costs, and will get partly recovered in the coming quarters with lagged price hikes. Though Asahi India Glass witnessed ~300 bps QoQ hit in both auto and architectural segments’ Ebit margins, auto margin was down to ~5%, a multi-year low barring the covid-impacted quarters. Architectural segment Ebit margin at 28%, though higher than long-term mean levels, was ~400 bps lower than the past six-quarter mean. We believe, the possibility of reviving imports with declining container costs poses a risk to architectural segment margin turnaround despite continued focus on increasing coated glass’ share in the revenue mix..Click on the attachment to read the full report:.Amara Raja Batteries Q3 Results Review - Strong Margin Performance: Dolat Capital.DISCLAIMERThis 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.

Asahi India Glass Q3 Results Review - Profitability Back To Long-Term Mean Levels: ICICI Securities

Power, fuel cost to sales remained steady and increase in ‘other expenses to sales’ added to Ebitdam decline beyond gross margin.

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