AIA Engineering Q1 Results: Profit Down 5%, Misses Estimates
Revenue was down 18% year-on-year for the three months ended June.
AIA Engineering Ltd. reported a 5% year-on-year decline in net profit for the first quarter of this financial year, missing analyst estimates.
The grinding equipment manufacturer recorded a net profit of Rs 259.4 crore for the quarter ended June, compared to Rs 272.5 crore in the same quarter of the previous fiscal year, according to its stock exchange notification. This was below the Rs 287 crore estimate by analysts tracked by Bloomberg.
Revenue was down 18% year-on-year for the three months ended June to Rs 1,019.97 crore. This was below the Rs 1,266 crore estimate by analysts tracked by Bloomberg.
Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 16% year-on-year to Rs 288.9 crore. The Ebitda margin expanded to 28.3% from 27.7% in the same period the previous year. Analyst estimates for Ebitda and Ebitda margin tracked by Bloomberg were Rs 330 crore and 26.1%, respectively.
The company plans to undertake brownfield expansion at its GIDC Kerala plant complex, aiming to manufacture speciality lightweight metal and rubber composite liners. The project will enhance efficiency and reduce downtime, with expected commissioning in the third quarter of FY25.
Shares of AIA Engineering closed 2.24% higher at Rs 4,813.35 per share, compared to a 0.08% decline in the benchmark Nifty. The stock has risen 32.81% on a year-to-date basis and 30.46% over the past 12 months.
