AIA Engineering Ltd. share price target

Mining volumes expected to revive gradually over FY21E During the quarter, sales volumes came in at 53177 MT, down 16.4% YoY dragged down by cement/other segment volumes. Mining segment volumes came in at 41055 MT, up 1.0% YoY and cement & others segment volumes came in at 12112 MT, down 47.3%, YoY. Mining segment is expected to at least sustain the run rate of 40-41000 MT in coming quarters while non-mining segment reduced owing to slower infrastructure, utilities spend across the world. The company did not face much supply chain...

During the quarter, sales volumes were at 82128 MT, up 2.6% YoY, while overall FY20 volumes were at 267229 MT YoY. Mining segment volumes were at 55105 MT, up 9.3% YoY while cement & others segment volumes were at 27023 MT, down 8.8% YoY. Mining segment, which contributes ~67%, reported decent growth despite volumes loss of ~20000-22000 MT from iron ore customer in Brazil, Africa. The company did not face much supply chain disruption or dispatch issues as it has already stocked up its warehouses which allowed dispatches to customers despite lockdowns....

Companies like Larsen & Toubro and KEC with exposure to the Middle East and North Africa (MENA) region are expected to get impacted by the recent more than 60% fall in crude oil prices to US$22/barrel. This is expected to impact overall orders/awarding from the MENA region. Companies like Elgi Equipments, AIA Engineering, Thermax, Engineers India and Kalpataru Power with exposure to international geographies like Europe, Middle East, China for sales or essential raw material may get impacted. However, lockdowns in India, UK, Europe and other geographies due to Covid-19 are...

Subdued mining volumes to impact FY20E performance During the quarter, sales volumes came in at 60263 MT, which grew marginally by 1.7% YoY while 9MFY20 volumes remained flat YoY to 185101 MT YoY. Mining segment sales volume grew marginally by 2.7% to 41162 MT while other segment came in flat at 19101 MT. Mining segment, which contributes more than 66%, got impacted by loss of volumes of ~18000 to 20000 MT from one of the Brazilian iron ore mine customer and ~5000 MT due to mining shutdown of one copper mining customer. Accordingly, the...

Volumes Disappoint in Q2; Recovery to be Gradual: AIA Engineering earnings for Q2 grew by 25 percent to Rs. 16.1 due to the benefit of switching to new tax rate.

Mining volumes pick up; key to growth over FY19-21E During the quarter, sales volumes came in at 61220 MT, down marginally by 0.8% YoY while H1FY20 volumes also de-grew 0.8% to 124838 MT YoY. Mining segment sales volume grew marginally by 0.9% to 40358 MT while other segment de-grew 3.8% to 20862 MT. The mining segment, which contributes more than 66%, got impacted by ~5000 MT of lesser offtake from one of the Brazilian iron ore mine customer and ~5000 MT adverse volume impact due to cautious stance by a lot of mines leading to inventory...

AIA revenue came in much below our estimates (17 percent) due to lower off-take by a Brazilian iron ore mining customer on account of an accident.

AIA Delivers Strong Q4; Valuation Rich: AIA Engineering (AIA) Q4 earnings were higher than our estimates on the back of strong volume growth in the mining segment. Volume for mining segment grew by 34.1% YoY to 37.6k tn and others (cement, utilities) segment grew by 2.9% to 28.8k tn.

Incremental volumes to aid revenue growth over FY19-21E During the quarter, sales volumes came in at 80033 MT, registering robust growth of 20.6% while production volumes grew 19% to 72942 MT YoY. Mining segment sales volume grew 34.1% to 50407 MT while other segment (including cement) grew 2.9% to 29626 MT. Mining segment is expected to rebound with incremental volume sales estimated to be in the range of 35000 to 40000 MTPA from FY20E onwards. For FY19, sales volumes grew 15.9% to 265174 MT in which mining segment volumes grew 23% to 170224...

AIA Engineering reported revenues of | 726.4 crore (below our estimate of | 757.5 crore), posting strong growth of 27% YoY. Sales volumes were at 59235 MT, up 15.3% YoY while production volumes grew 34.4% to 74619MT YoY. Net realisation per tonne grew 9.3% YoY to | 118.2 per kg owning to foreign exchange gains EBITDA came in at | 165.2 crore, above our estimate of |158.3 crore. However, EBITDA margins came in at 22.7% with an improvement of 70 bps YoY (above our estimate of 20.9%) on account of lower-thanexpected increase in raw material expenses and employee expenses...