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.
Systematix Research Report
Q3 FY24 results and outlook:
Building material companies reported weak Q3 results.
Pipes volume/revenue (up 5%/0% YoY) missed our estimates by 3-8% driven by Apollo Pipes Ltd. (up 5%/-6%), Finolex Industries Ltd. (down 10%/8%) and Prince Pipes and Fittings Ltd. (down 2%/12%).
Strong momentum sustained though for Supreme Industries Ltd. (up 17%/9%) and Astral Ltd. (up 15%/7%). Small inventory loss (~100 bps) due to reduction in PVC price towards the end of Q3 hurt margins.
Plumbing and infrastructure verticals continued to drive volumes. Companies are hopeful of volume recovery in coming quarters.
Six wood panel companies under our radar missed revenue/profit after tax estimates by 9%/29% YoY, led by Century Plyboards India Ltd. and Greenlam Industries Ltd., owing to soft demand and elevated timber prices.
Stylam Industries Ltd. clocked 8% YoY dip in revenue, but PAT surged 30% on a strong 22.3% Ebitda margin (up 210bps QoQ; likely to sustain). In MDF, Greenply's MDF volume came flat YoY (up 15% for Century Plyboards India) with 19.6% Ebitda margin (18.9% for Century Plyboards).
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
