Timken India Q3 Results Review - Another Quarter Of Subdued Performance: Centrum Broking

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.Timken India Ltd. continues to disappoint on revenue front in Q3 FY24 as well. Revenue remained almost flat (0.5% up) YoY to Rs 6,122 million (centrum – Rs 5,714 million / consensus – Rs 6,425 million). December- 23 results presentation of Timken Co, U.S. have highlighted that organic revenue “up” in India though. We estimate ~35% YoY decline in export to Rs 793 million led to flat revenue performance. However, improvement registered in gross margin YoY by 99 basis points to 40.5% (centrum – 41.5%). This coupled with 8% YoY decline in employee cost arrested Ebitda margin fall to just 27 bps YoY to 16.7% (centrum – 16.7% / consensus-19.1%). With no YoY growth in revenue coupled with a 26% YoY drop in other income off-set the gains led by a surprising YoY decline of 8% and 6% in the employee cost and depreciation respectively and a flat tax rate..This has resulted in a YoY drop of 4.3% in the profit after tax to Rs 675 million versus Rs 705 million (centrum – Rs 630 million / consensus - Rs 940 million). PAT margin at 11% versus 11.6% YoY, a drop of 55 bps (centrum – 11% /consensus- 14.6%). We estimate tepid revenue and PAT compound annual growth rate for FY23-FY26E at 7.8% and 3.8% as against FY21-FY23 revenue and PAT CAGR of 41% and 65% respectively. We maintain 'Sell' (42 times H1 FY26E earning per share of Rs 55) with target price of Rs 2,297 (Unchanged)..Click on the attachment to read the full report:.Prince Pipes Q3 Results Review - Measures Taken To Re-Gain Lost Market Share From Q1 FY25: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Timken India Q3 Results Review - Another Quarter Of Subdued Performance: Centrum Broking

Gross margin surge and drop in employee cost arrested a big fall in Ebitda margin.

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Timken India Q3 Results Review - Another Quarter Of Subdued Performance: Centrum Broking

Gross margin surge and drop in employee cost arrested a big fall in Ebitda margin.

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