Tega Industries (TEGA) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 18.15% YoY to ₹9,517.56 million, while consolidated PAT fell 14.30% to ₹1,168.99 million amid input and logistics inflation and lower one-time non-operating income.

• Operating EBITDA margin was 19.21%, down from 23.27%; demand visibility was supported by recurring consumables, repeat customers and a ₹2,359 million order book.

• Strategic priorities include digital products, higher R&D, recyclable products and capacity expansion in Chile, India and South Africa.

Financial highlights

• Consolidated total income increased to ₹9,759.54 million from ₹8,566.84 million; PBT declined to ₹1,549.71 million from ₹1,838.62 million.

• Consolidated PAT was ₹1,168.99 million versus ₹1,364.05 million; basic EPS was ₹19.65 versus ₹24.10 and diluted EPS was ₹17.55 versus ₹20.48.

• Operating EBITDA was ₹1,828.58 million, with margin at 19.21% versus 23.27%; raw-material and logistics inflation reduced profitability.

• Other income fell to ₹241.98 million from ₹511.62 million consolidated; prior-year results benefited from higher non-operating fair-value gains on investments.

• Consolidated assets rose to ₹11,792.13 million from ₹10,183.39 million, while net worth increased to ₹7,360.35 million from ₹6,137.22 million.

Outlook and guidance

• Research spending is planned to rise from 1% to 3% of revenue, supporting nearly six concurrent development projects, particularly in Chile and India.

• A sensor-based IoT product is planned to provide real-time product-health alerts; Industry 4.0 rollout was targeted for Q3 of FY23.

• The target is to make products 100% recyclable within five years, including recycling and re-grinding services for used products.

• DynaPrime off-take is expected to compound at 25% over five years, with the product targeted to represent slightly less than half of revenue by 2027.

• Chile greenfield capacity was planned for commissioning by FY25; India and South Africa expansions will focus on brownfield growth and debottlenecking.