AIA Engineering Ltd. share price target

Volumes expand by 17.0% in Q1FY18: Overall volumes for AIA grew by 17.0% to 55,680mt on YoY basis in Q1FY18. In terms of user segments, mining segment volumes grew by 16.8% on YoY basis to 34,083mt while Non-mining segment witnessed YoY growth of 17.5% to 21,597mt during Q1FY18. Management has guided for FY18E volumes in the range of 0.24 Mn tn to 0.25 Mn tn for FY18E.

ICICI Securities Ltd | Retail Equity Research AIA Engineering reported lower-than-expected Q1FY18 results. The revenues and volumes were mostly in line with estimates while a massive decline in gross margins led to disappointing EBITDA. Consequently, PAT was below estimates as EBITDA margins and lower other income played spoilsport Revenues came in at | 554.8 crore vs. our estimate of | 564.5 crore. Volumes for Q1FY18 grew 17% YoY to 55680 tonnes vs. estimates of...

Maintain BUY with a TP of Rs 1,600 (25.0x FY19 P/E). AIA Engineering (AIAE) numbers were in-line with estimates (EBITDA: Rs 1.30bn vs est Rs 1.30bn, -(11.6)/(11.7)% YoY/QoQ). Volume growth in mining resumed after a brief pause in 4QFY17 (16.8% YoY for 1QFY18). EBITDA margins shrank to 22.8% ((659)/(64) YoY/QoQ), driven by costlier FeCr over 2HFY17, getting reflected in the numbers now.

Revenue rose by 22.69% to Rs. 608.35 Cr in Q4FY17 when compared to the previous quarter

AIA Engineering (AIAE) numbers missed estimates (Adj. EBITDA: Rs 1.47bn vs est Rs 1.65bn, -13.2% YoY, -7.75 QoQ), driven by weaker volume growth in mining segment (29.6 kT, 3.4% YoY vs 9MFY17 growth of 34%).

ICICI Securities Ltd | Retail Equity Research Revenues were at | 647.6 crore vs. our estimate of | 562.8 crore. Volumes at 58090 tonnes were ahead of our estimate of 54500 tonnes. However, mining segment delivered muted 3% YoY growth whereas majority of growth came in at cement & utility segment at...

AIA Engineering (AIAE) delivered strong mining volume growth yet again (35.8 kT, 48.8% YoY), even as other segments (Cement, Power) chugged along (21.0 kT, 4.2% YoY). The volume growth ensured margins did not suffer (29.3%, -82 bps YoY, -83 bps QoQ) despite flattish realisations (Rs 100,890, -7.1% YoY, 1.9% QoQ) and a sharp surge in RM costs (up 3.6/21.6% YoY/QoQ on a per tonne basis).

Strong Volumes Mitigate Realisation Drop During 9MFY17: Volumes for 9MFY17 reached to 1,56,387 tonnes (mt) which is higher by 18.2%while the average realisation dropped by 10.9% to Rs.103/kg at consolidated level. Volumes from mining segment grew substantially by 34.4% to 96,899mt howevernon-mining segment constituting primarily of cement and power de-grew by 1.2% to 59,488mt. During Q3FY17, volumes grew by 28.4% on YoY basis to 56,846mt while average realisations dropped by 7.3% on YoY Basis. Mining volumes reachedto 35,854mt, higher by 48.8% and utilities volume grew by 4.1% to 20,992mt.

ICICI Securities Ltd | Retail Equity Research Revenues came in at | 590.1 crore vs. our estimate of | 541 crore. The key positive surprise was volume growth for Q3FY17 was at 56846 tonnes, up 28.5% YoY, compared to our estimate of 52485 tonnes. Coupled with this, mining segment volumes made a smart comeback with 48.9% YoY and 12.5% QoQ growth at 35854 tonnes while the cement and utility segment posted muted volume growth at 20991 tonnes. The company has guided for an incremental volume...

AIA Engineering (AIA) is set to be one of the largest grinding media consumables companies globally. The increasing penetration of cast high chrome (HC) balls in an industry dominated by forged balls presents a unique opportunity. AIA is well placed to capitalize given its operational superiority over sector leaders and improving acceptance of its offerings by leading miners across diverse geographies.