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Nirmal Bang Report
Jamna Auto Industries Ltd.'s earnings were above our estimate. The company's Q3 FY23 revenue stood at Rs 5,910 million, up 7% QoQ and 33% YoY; QoQ revenue growth was largely led by the improvement in mix driving realization viz. higher share of medium and heavy commercial vehicle in industry volume and higher share of new products (45% versus 41% in Q2 FY23).
Gross margin came in at 33.7%, up 190 basis points QoQ amid raw material cost tailwinds. Jamna Auto Industries reported Ebitda margin of 11.1% (up 80 bps versus our estimate), up ~90 bps QoQ, led by gross margin expansion, partly offset by higher other expenses.
Reported Ebitda at Rs 657 million increased by 17% QoQ and was 14% above our estimate. Jamna Auto Industries continues to maintain a dominant market share in the original equipment manufacturer segment.
Furthermore, the share of new products in the revenue pool increased to 45% in Q3 FY23 versus 41% in Q2 FY23, largely led by consistent focus on introducing new products.
With the new products like lift component, trailer component and spring component, Jamna Auto Industries wants to increase the content per vehicle and target the addressable market in the aftermarket segment. However, the revenue share of new markets declined by 100 bps QoQ in Q3 FY23 to 20%.
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