AIA Engineering gains 6% post March quarter results

In Q4 EBITDA margin improved 182 basis points (bps) YoY and 21 bps sequentially at 24.2 per cent.

Shares of AIA Engineering were up 6 per cent to Rs 1,998.50 on the BSE in Thursday’s trade. The surge comes after the company reported 45 per cent year on year (YoY) growth in its consolidated net profit at Rs 194.6 crore in March quarter, on back of healthy operational revenue. The board has recommended a dividend of Rs 9 per equity shares of Rs 2 each (i.e. 450 per cent dividend).

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At 09:42 am; AIA Engineering traded 5 per cent higher at Rs 1,981, as compared to 0.25 per cent rise in the S&P BSE Sensex. The stock has recovered 35 per cent from its 52-week low level of Rs 1,476 that it had touched on March 7, 2022. Earlier, it had hit a 52-week high of Rs 2,220 on July 7, 2021.

Meanwhile, total income from operations grew 27 per cent YoY at Rs 1,093 crore. Besides that, earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved 182 basis points (bps) YoY and 21 bps sequentially, at 24.2 per cent.

The company engaged in castings and forgings business has order book position of Rs 502 crore as on April 1, 2022. However, the company said its business continues to face uncertainty in terms of outlook due to impact of covid in some countries like China and Ukraine.

“In line with sharp run-up in commodity prices generally, we have seen our input costs and freight go up significantly which is reflected in our cost of goods sold for the quarter. The company will make efforts to pass-through these costs over next few quarters,” the company said.

AIA Engineering has the present installed capacity 390,000 tonnes per annum (TPA). The company has nearly completed setting up a manufacturing plant of mill liners with a capacity of 50,000 metric ton and it is expected to be commissioned in June 2022. Post this expansion, the total installed capacity will be 440,000 TPA.

"We expect capex of Rs 300 crore over FY22-23, which includes mill lining project, grinding media expansion project and hybrid power project of 6.30 MW wind power and 5.67 MW of solar power in addition to general capex," the company added.