Tega Industries (TEGA) Q4 22/23 earnings summary

Executive summary

• FY 2022-23 consolidated revenue rose 27.55% to ₹12,139.72 million; PAT increased to ₹1,840.30 million from ₹1,168.99 million.

• Acquired McNally Sayaji Engineering Limited (MSEL) on March 29, 2023, expanding from consumables into mineral-processing equipment and integrated solutions.

• Q4 revenue increased 36% YoY to ₹396 crore; robust sales across geographies came amid geopolitical, inflation and supply-chain pressures.

Financial highlights

• Revenue from operations rose 27.55% to ₹12,139.72 million; total income increased 26.5% to ₹12,346.56 million.

• Consolidated EBITDA grew 40.59% to ₹2,910.98 million; operating EBITDA was ₹2,704.14 million versus ₹1,828.58 million.

• PAT was ₹1,840.30 million versus ₹1,168.99 million; basic EPS increased to ₹27.76 from ₹19.65.

• Operating EBITDA margin improved to 22.28% from 19.21%; PAT margin was 15.16% versus 12.28%.

• Gross margin declined 100 bps YoY as supply-chain cost benefits and higher prices reached customers with a lag; quarterly gross margins improved through the year.

Outlook and guidance

• MSEL revenue CAGR is envisaged at 15% over the next three to four years.

• Planned capacity investment includes a greenfield project in Chile and expansions in Africa and India; Chile is expected to lead capex over the next 18 months.

• R&D investment ambition is to increase from 1% to 3% of revenue; an investment of USD 30 million in Chile and India was planned by 2025.

• FY 2023-24 digital priorities include completing cloud migration, sales-force automation and Darwinbox implementation, and upgrading SAP for real-time planning.