ICICI Direct

Jan 17, 2025 | investmentguruindia.com | ICICI Direct

2025-01-17 10:34:14 am | Source: Motilal Oswal Financial Services Ltd Ltd News By Tags | #PidiliteIndustriesLtd #QuarterlyResult #MotilalOswalFinancialServicesLtd Disclaimer: The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results.

Jan 17, 2025 | investmentguruindia.com | ICICI Direct

* We expect revenue growth of 20% YoY, led by healthy execution of the record OB of INR746b. ? Gross margin is expected to normalize post the 2Q spike. * Key monitorables include update on order inflows, status of QRSAM/MRSAM, execution of orders for LRSAM and EW projects, share of exports, and working capital cycle. * We expect margins to return to FY24 levels and contract ~40bp YoY, reaching 25%. Margins in BHE are a function of the project mix and can vary sharply during a quarter.

Jan 17, 2025 | investmentguruindia.com | ICICI Direct

* We expect consolidated revenue growth of 20% YoY, led by 24% YoY revenue growth for Core E&C. * We expect Core E&C EBITDA margin of 8.1%, up 40bp YoY/50bp QoQ. * Key monitorables include domestic order pipeline, margin performance, as well as working capital cycle. Notably, the company has bagged thermal and defense orders in 3QFY25, allaying concerns on domestic ordering. * We would also look out for execution ramp-up in Saudi projects and trend in the GCC order pipeline.

Jan 17, 2025 | investmentguruindia.com | ICICI Direct

* Total revenue is expected to grow ~3% YoY, supported by steady replacement demand in domestic markets even as domestic OEM demand remains muted. * Apollo has taken about 2% price hike in TBR and 3% in PCR in 3Q. However, this is unlikely to be sufficient to cover the continue rise in input costs. * Hence, we expect EBITDA margin in India business to contract sequentially by 60bp. Even in Europe, margins are likely to decline by about 80bp YoY over a high base of last year.

Jan 17, 2025 | investmentguruindia.com | ICICI Direct

* For India, both PV and CV volumes remained largely flat YoY. * CV’s EBITDA margin is expected to expand 50bp YoY, while EBITDA margin for PV is likely to remain stable YoY. * JLR volumes are expected to remain flat YoY. However, we expect EBITDA margin to remain under pressure and contract 270bp YoY due to rising discounts. * We cut our FY26E EPS by 5.5% to factor in continued margin pressure, particularly for JLR business.