Q4 FY23 Performance Summary
- The company’s overall consolidated revenues stood at Rs. 28.98 Cr, witnessing a sharp decline of 24.2% qoq.
- The company operates in only one business segment – manufacturing and installation of in-building coverage solutions and mobile network accessories for mobile service providers and operators.
- The fall in top-line is on account of slower rollout by mobile operators of 5G products which is related to company’s portfolio of products offered. Because of a decelerated demand for the company’s products, it is resulting in higher inventory levels and thus higher working capital days.
- EBITDA for the quarter stood at Rs. 2.8 Cr with margins witnessing a significant de-growth of 560 basis points qoq, standing at 9.7% in Q4 FY23 compared to 15.3% in Q3 FY23.
- Net profit for the quarter stood at Rs 3.97 Cr with PAT margins improving to 13.68% from 10.34% in the previous quarter. This was mainly due to reduction of debt on the books, leading to a fall in interest costs.
Future Guidance
- The management believes it’ll be able to recover from the slowdown in FY24 on the back of growth opportunities in 5G technology and growing demand for enhanced network coverage services. The company has an order book standing at Rs 65 Cr and is optimistic to grow in the range of ‘45% to 50% in FY24’, with EBITDA margins stabilizing between 16% to 18%.
- The company is also investing heavily on its manufacturing facilities. The new manufacturing facility in Noida covers 100,000 sq ft of covered area and is expected to commence its operations by the end of Q1 FY24. It is also adding an additional 600,000 sq ft of manufacturing space to support its operations, which is projected to be completed by the end of Q3 FY24.
Financial Summary (Rs. Crores)
| 31-Dec-22 | 31-Mar-23 | |
| Revenue | 38.26 | 28.98 |
| EBITDA | 5.85 | 2.80 |
| EBITDA% | 15.3% | 9.7% |
| EPS | 2.58 | 2.58 |
| PAT | 3.96 | 3.97 |
| PAT % | 10.34% | 13.68% |
Be First to Comment