AIA Engineering (AIAENG) Q4 20/21 earnings summary

Executive summary

• FY21 consolidated revenue from operations was ₹288,149.24 lakh and PAT after minority interest was ₹56,612.19 lakh; pandemic restrictions slowed activity and customer conversions.

• Mining remains the primary growth opportunity through conversion from forged media to high-chrome solutions; cement outlook is flat near term and thermal power is expected to track sector growth.

Financial highlights

• Consolidated revenue from operations ₹288,149.24 lakh vs ₹298,087.75 lakh YoY; EBITDA ₹82,744.19 lakh vs ₹82,219.10 lakh, with EBITDA margin 28.72% vs 27.58%.

• Consolidated PBT ₹72,964.79 lakh vs ₹71,872.43 lakh; PAT after minority interest ₹56,612.19 lakh vs ₹59,035.80 lakh; EPS ₹60.02 vs ₹62.59.

• Standalone revenue from operations ₹247,299.38 lakh vs ₹258,762.44 lakh; PAT ₹48,490.18 lakh vs ₹83,252.97 lakh. Prior-year other income included ₹33,974.07 lakh of dividend income.

• Consolidated operating cash flow was ₹59,846.19 lakh vs ₹67,913.05 lakh; year-end cash and cash equivalents were ₹46,217.43 lakh vs ₹14,849.19 lakh.

Outlook and guidance

• A 50,000 MT greenfield mill-liner facility, with estimated capex of ₹250 crore, was targeted for commissioning in H2 FY22; capacity was expected to rise from 390,000 MT to 440,000 MT.

• A second 50,000 MT grinding-media expansion phase was deferred until global COVID-related uncertainty stabilizes; planned capex is to be funded from internal cash accruals.

• Mining growth depends on converting forged-media demand to high chrome and launching mill liners; management expected customer-site travel to resume as vaccination and pandemic conditions improved.

• Cement production and sales were expected to remain flat near term; thermal power business was expected to grow in line with the sector.