AIA Engineering (AIAENG) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue from operations rose to ₹2,466.69 crore from ₹2,320.34 crore; profit attributable to owners eased to ₹443.35 crore from ₹456.77 crore.

• Growth was led by mining demand and export sales; EBITDA and margins declined amid higher material and other operating costs.

Financial highlights

• Consolidated revenue from operations ₹2,466.69 crore vs ₹2,320.34 crore; total income ₹2,588.50 crore vs ₹2,424.70 crore.

• Consolidated EBITDA ₹657.51 crore vs ₹739.01 crore; EBITDA margin 26.66% vs 31.85%.

• Consolidated PBT ₹585.01 crore vs ₹662.04 crore; profit attributable to owners ₹443.35 crore vs ₹456.77 crore.

• Consolidated basic and diluted EPS ₹47.00 vs ₹48.43; total comprehensive income attributable to owners ₹422.70 crore vs ₹438.91 crore.

• Standalone PAT increased to ₹469.91 crore from ₹417.31 crore; EPS rose to ₹49.82 from ₹44.24.

Outlook and guidance

• Mining remains the primary growth driver, with conversion potential from forged media to high-chrome wear parts and planned growth across iron, platinum, gold and copper ores.

• Capacity targeted to rise from 340,000 MT to 390,000 MT in FY19 and 440,000 MT in FY20; first 50,000 MT phase delayed by an equipment supplier.

• A 50,000 MT mill-linings facility is planned for commissioning in FY21; estimated investment ₹250 crore.

• Planned wind-mill investment of ₹100 crore aims to reduce power costs; planned expansion and wind capex to be funded from internal accruals.

• Cement sales expected to remain flat near term; thermal-power business aims to maintain growth in line with sector activity.