Industrial Products company Nelcast announced Q2FY24 & H1FY24 results:<br><br>Financial Performance:<br>- Total revenue for Q2FY24 was Rs 362.6 crore, a growth of 9.3% YoY and 22.4% QoQ.<br>- EBITDA for Q2FY24 stood at Rs 36.1 crore, up 19.9% YoY and 57.1% QoQ.<br>- PAT for Q2FY24 was Rs 16.6 crore, showing a growth of 36.9% YoY and 131.9% QoQ.<br>- EBITDA margin for Q2FY24 was 9.9%, an increase of 87 bps YoY and 220 bps QoQ.<br>- PAT margin for Q2FY24 was 4.6%, a growth of 92 bps YoY and 217 bps QoQ.<br><br>Segment-wise Revenue:<br>- In H1FY24, M&HCV; contributed 37% of the total revenues, followed by Tractors (23%), Exports (34%), Railways (3%), Off-highway equipment (2%), and Others (1%).<br>- In H1FY23, M&HCV; contributed 36% to revenues, Tractors (34%), Exports (25%), Railways (3%), Off-highway equipment (2%), and Others (~0%).<br><br>Export Performance:<br>- Export sales crossed the milestone of Rs 100 crore in Q2FY24, with a growth of over 58% YoY.<br>- The export segment is expected to continue growing steadily, driven by a strong order book.<br><br>Outlook for FY24:<br>- Expect strong growth driven by demand in M&HCV; and exports.<br>- Raw material prices are expected to remain stable at current levels.<br>- Capacity utilization levels will be enhanced to take advantage of economies of scale.<br><br><br>Commenting on the performance P Deepak, Managing Director & CEO, said, “We ended the quarter on a good note given the decent top-line growth that was driven by exports and the M&HCV; segment. On the export front, I’m very happy to share that we crossed the Rs 100 crore milestone and clocked ~Rs 130 crore, which was a growth of over 58% on a year-on-year basis. Going forward, we expect this segment to continue to grow at a steady pace on the back of our strong order book, however, the strike situation in the US might have a minimal impact in the coming quarter. Moreover, with the construction activity picking up, we also expect strong demand for tippers and hence, a significant contribution from the M&HCV; segment in the coming quarters. Improvement in EBITDA/kg was due to an increase in volume, increased contribution from exports, which tend to have better margins, alongside normalization of raw material prices. Going forward, we expect raw material prices to remain stable at current levels.<br><br>FY24 is expected to end with a decent top line growth driven by pick-up in M&HCV; segment and steady growth in our export business. Besides this, we will continue to focus on enhancing our capacity utilization levels to take advantage of economies of scale and aid our margins.”<br><br><br><br>Result PDF