Carborundum Universal Q2 Results Review - Performance A Mixed Bag: 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.Carborundum Universal Ltd. has reported a mixed set of numbers with in-line revenue performance while profitability was hit due to higher raw material cost and consolidation of new acquisitions. Consolidated revenue grew 34% YoY to Rs 11.3 billion (our estimate: Rs 11.8 billion) led by 49% / 21% / 27% YoY growth in abrasives / ceramics/ electro minerals, respectively. The recently acquisitions, Rhodius and AWUKO, contributed Rs 1.28 billion in Q2 FY23 versus Rs 1.8 billion in Q1 FY23 to sales. Consolidated Ebitda margin came in lower at 14.5% (our estimate: 14.8%) due to increase in raw material cost, operational losses at Rhodius and AWUKO, and integration expenses. Management indicated that losses are likely to continue in the near- to medium-term for both the subsidiaries. Ceramics and EMD segments reported strong Ebit margins, which partly offset the decline in abrasives segment. We consider Carborundum a strong play on industrial capex, and remain optimistic on it due to its highly diversified product portfolio, and net cash balance sheet. .Click on the attachment to read the full report:.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.

Carborundum Universal Q2 Results Review - Performance A Mixed Bag: ICICI Securities

Company reported mixed set of numbers with inline revenue performance while profitability was hit due to higher raw material cost.

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