Gravita India Q1 Results: Lead business leads earnings recovery on expected lines

Shares of Gravita India Ltd. are in focus on Tuesday, July 29, as its first quarter results improved from the same quarter last year, which was on expected lines.

The earnings recovery was led by the lead business, while lower finance costs contributed to the 37% growth in profitability from last year to ₹93 crore from ₹68 crore. Finance costs fell by more than half.

Revenue for the quarter increased by 17% from last year to ₹1,070 crore from ₹914 crore.

Gravita India's earnings before interest, taxes, depreciation and amortisation (EBITDA), including other income, increased 39% to ₹130.76 crore from ₹94.35 crore in the year-ago period.

Other income includes hedging-related gains that are essentially part of the core business as per analysts and the firm. The company hedges commodity exposure on the same day it procures scrap, and is therefore included in the EBITDA.

Lead business improves

Gravita India's lead business revenue increased 12% to ₹928.2 crore from ₹832 crore in the previous year. Its EBIT was up 40% at ₹115.6 crore from ₹82.52 crore and margins expanded to 12.5% from 9.9%.

The company's volumes of ₹46,215 tonne, increased 10.3% from ₹41,913 in the previous year. Its EBITDA per tonne was up 13% at ₹21,790 crore from ₹19,321 crore in the year-ago period.

Gravita India shares ended the previous session 3.48% lower at ₹1,820.9 crore. The stock has declined 16.4% this year, so far.

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