Company Update : Craftsman Automation Ltd By Motilal Oswal Financial Services Ltd
Yet another weak quarter
* 3QFY25 consol revenue grew ~40% YoY to INR15.8b (est. INR16.99b) and standalone revenue grew 15% YoY.
* In the standalone business, revenue for auto powertrain/aluminum/ industrials grew ~3%/37%/16% YoY.
* Despite lower growth in the auto powertrain division, gross margin improved 50bp YoY/290bp QoQ to 47.3%. (est. 43%).
* Weak growth was partially offset by better gross margins, leading to inline EBITDA at INR1.99b (-10% YoY).
* EBITDA margin contracted 690bp YoY/330bp QoQ to 12.6% (est. 11.5%).
* Further, higher interest costs and lower other income led to adj. PAT miss at INR241m (down 67% YoY, est. INR594m).
* An exceptional item of INR147.6m during the quarter was related to expenses incurred by SLSPL for the relocation of its Gurgaon facility and the transfer of control to the company.
* Valuation view: The stock trades at 27.5x FY25E/19x FY26E EPS.
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