ICICI Direct: Midhani Annual Report Analysis - Healthy Order Book Position

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Mishra Dhatu Nigam Ltd. reported a subdued set of Q1 FY21 numbers. Total operating income for the quarter was at Rs 113.5 crore (down 14% YoY), while Ebitda was at Rs 5.8 crore (down 84% YoY).Ebitda margin for Q1 FY21 was at 5.1% compared to 27.4% in Q1 FY20. The company reported a loss at the profit after tax level of Rs 90 lakh for Q1 FY21 compared to profit after tax of Rs 21.9 crore in Q1 FY20.Due to Covid-19 related shutdowns, the operations had to be scaled down for a considerable period in Q1 FY21.Though operations resumed during the latter part of the quarter with limited availability of workforce and disrupted supply chain, the restriction imposed affected the company’s production, turnover and profit during Q1 FY21.However, since the end of May 2020, Midhani’s operations have normalised. Going forward, backed by a healthy order book, we expect the company's performance to improve in upcoming quarters.Within the defence segment, government’s initiative of indigenisation of imported spares will promote local sourcing and encourage import substitution.This step will benefit the company, as it would encourage it to manufacture products locally, which were earlier imported thereby providing scope for developing new advanced product..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Midhani Annual Report Analysis - Healthy Order Book Position

The central government’s push for local defence manufacturing will aid Mishra Dhatu Nigam (Midhani), going forward.

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