IGI Logo

Below is quote on Carborundum Universal reports a better than expected Q1FY22 numbers by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

Carborundum Universal reported a good set of numbers for Q1FY22 as revenues registered a growth of 58.3% YoY to ₹711.6 crore. EBIDTA for the quarter stood at ₹118.2 crore up 172.5% YoY while EBIDTA margins expanded by 696bps YoY to 16.6%. However on a sequential basis revenues contracted by 5.9% while gross margins expanded by 65bps QoQ. However higher other expenses led to a contraction of 434bps QoQ in EBIDTA margins while EBIDTA for the quarter was down by 25.4% QoQ to Rs 118.2 crore. Net profit for the quarter was up by 290.9% YoY to Rs. 77.1 crore though it was down by 14.8% sequentially. Overall the company has reported a better than expected set of numbers despite operations being impacted during the quarter due to the second Covid wave. Post the Q1FY22 numbers we continue to maintain our BUY rating on the stock with a revised target price of ₹800.

Above views are of the author and not of the website kindly read disclaimer