BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Advanced Enzyme Technologies Ltd.'s Q3 FY23 operating performance came broadly in line with our estimate. Human nutrition segment, which contributes ~66% to overall revenue and even higher in terms of profit, continued to witness weakness on account of recessionary trends in USA and inventory pile-up at customers' end.
The management expects recovery post two quarters. Recovery in the Human nutrition segment should coincide with significant Ebitda margin expansion and old normal of ~40% should be restored, as per management.
Excluding Human nutrition, the portfolio grew by ~17% YoY. Region-wise, while India and USA were muted, Asia (excluding India) delivered very strong growth of ~60% YoY.
Elevated operating costs and an unfavorable mix impacted Ebitda margin in Q3 FY23. Advanced Enzyme continues to spend aggressively on research and development as nine months-FY23 spends were up by ~45% YoY.
While there are no clear signs of a recovery in the near term, the management expects some ramp-up from FY24, wherein the margin trajectory is also expected to improve.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories ā On NDTV Profit.
