Uno Minda Q2 Results Review - Strong Growth Outperformance Justify Premium Valuation: Reliance Securities
The company's robust performanc with Ebitda margin came in at 11.1% due to strong revenues despite higher raw material prices.
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Reliance Securities Report
Uno Minda Ltd. delivered a robust performance in Q2 FY23 with Ebitda margin came in at 11.1% (up 29 basis points YoY/up 66 bps QoQ), versus our estimates of 11.2% due to strong revenues despite higher raw material prices.
Consolidated revenues increased by 36% YoY and 13% QoQ to Rs 28.8 billion, versus our estimate of Rs 28.4 billion due to strong volume traction in passenger vehicles and improving two-wheeler sales coupled with value-addition due to premiumisation.
Uno Minda's Ebitda of Rs 3.18 billion (up 40% YoY /up 20% QoQ), came in line with our estimate of Rs 3.17 billion due to operating leverage. UNO Minda’s profit after tax stood at Rs 1.7 billion (up 80% YoY/up 23% QoQ) broadly in line with our estimated profit after tax of Rs 1.71 billion.
We expect positive traction in automobile production to continue with semiconductor shortage easing out and healthy passenger vehicle order book in H2 FY23 and FY24E, to act as a key driver for the company.
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