Company Update :Tube Investments of India Ltd By Motilal Oswal Financial Services Ltd
Margins in line; PAT beat led by higher other income
* Revenue rose 2.4% YoY to INR20.1b (in line). Revenue from mobility/engineering/metal formed grew 9.8%/~3%/2.3% YoY, respectively. The others segment, however, posted a 4.3% YoY decline in revenue in 1Q.
* Gross margin expanded 80bp YoY to 37.6%.
* EBITDA grew 3% YoY to INR2.5b and was in line with our estimate. EBITDA margin remained flat YoY at 12.3% (est. 12%).
* Segmental EBIT performance: Mobility margins expanded sharply by 260bp YoY to 3.5%. On the other hand, while the Engg business margin contracted 60bp YoY to 11.8%, margins for the metal formed division remained stable YoY at 10%
* Other income was ahead of our estimate at INR234m (estimate INR150m).
* As a result, PAT at INR1.68b came in ahead of our estimate of INR1.6b, marking a 9% YoY increase.
* RoIC (annualized) in 1Q stood at 39% for Q1 vs 47% YoY. ? Free cash flow stood at INR820m for the quarter. ? Valuation view: Adjusted for its stake in CG Power and Shanti Gears, the standalone entity is valued at 11x/10x FY26E/FY27E EPS.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
 Ltd.jpg)
