[ad_1]
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Escorts Kubota Ltd.’s Q1 FY23 results were weak with Ebitda/ adjusted profit after tax miss by ~30/37.5% to ours and ~29/34% to street estimates.
Q1 FY23 witnessed dual impact of market share loss by ~210 basis points QoQ/~140 bps YoY and margins contraction of ~350 bps QoQ/420 bps YoY to 10% (10 quarter low).
Escorts Kubota’s sharp decline in margins explained by seven‐year low gross margins at 27.8% (our estimate: 30%, down 210 bps QoQ), despite price hikes of ~2‐ 2.5%/~2% in Q4 FY22/Q1 FY23 with product mix largely intact QoQ.
Industry growth guidance for FY23 has been revised from mid‐high single digit in Q4 FY22, to low‐mid single digit. We believe while demand sentiments have been impacted by product price hikes (13‐16% over seven quarters), monsoon spread out remain key for meaningful volume recovery.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
[ad_2]
Image and article originally from www.bqprime.com. Read the original article here.