Stock Report

Pavna Industries Ltd announces Q3, 9M FY2024 results

Posted On : 2024-02-19 20:07:08( TIMEZONE : IST )

Pavna Industries Limited (NSE: PAVNAIND. BSE: 543915), among leading manufacturers of wide range of automotive parts for reputed OEMs serving different vehicle segments including passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles and off-road vehicles, announced its unaudited financial results for third quarter and nine months ended 31st December 2023 in the Board meeting held on 14th February 2024.

Performance Highlights:
For the quarter ended December 31st, 2023:

- Revenue from Operations stood at Rs. 79.86 crore in Q3 FY24, as against Rs. 76.16 crore in Q2 FY24, Q-o-Q increase of 4.86% mainly due to increase in sales volumes

- EBITDA (excluding other income) was at Rs. 7.93 crore in Q3 FY24 as against Rs. 8.68 crore in Q2 FY24, decrease of 8.69% Q-o-Q basis

- EBITDA Margin for the quarter ended Q3 FY24 was 9.93% as against 11.40% in Q2 FY24, Qo-Q decrease of 147 bps mainly due to increase in raw material prices

- Q3 FY24 PAT stood at Rs. 2.20 crore as against PAT of Rs. 2.75 crore in Q2 FY24, decrease of 20.02% on Q-o-Q basis

- Q3 FY24 PAT Margin stood at 2.76% as against PAT Margin of 3.62% in Q2 FY24, Q-o-Q decrease of 86 bps

For the nine months ended December 31st, 2023:

- Revenue from Operations stood at Rs. 235.43 crore in 9M FY24, as against Rs. 278.10 crore in 9M FY23, Y-o-Y decrease of 15.35%. Pavna Goyam Auto Pvt. Ltd. (PGAPL) ceased to be a subsidiary of Pavna Industries from 11th May, 2023 which impacted H1 FY24 revenues

- EBITDA (excluding other income) was at Rs. 24.96 crore in 9M FY24 as against Rs. 19.77 crore in 9M FY23, increase of 26.22% Y-o-Y basis

- EBITDA Margin for the quarter ended 9M FY24 was 10.60% as against 7.11% in 9M FY23, Yo-Y increase of 349 bps mainly due to better operational efficiencies and optimum utilization of resources. Moreover, the loss making subsidiary is no longer associated with the Company leading to improvement in the margins

- 9M FY24 PAT stood at Rs. 9.07 crore as against PAT of Rs. 2.59 crore in 9M FY23, increase of 250.15% on Y-o-Y basis

- 9M FY24 PAT Margin stood at 3.85% as against PAT Margin of 0.93% in 9M FY23, Y-o-Y increase of 292 bps

Commenting on the result, Mr. Swapnil Jain, Managing Director, Pavna Industries Ltd. said, "As for the financial performance of the Company, in 9M FY24, Pavna Industries Limited witnessed a decline of 15.35% in revenue compared to the same period last year. This decrease can be primarily attributed to the strategic transition following the divestment of Pavna Goyam Auto Private Ltd. (PGAPL), a significant contributor to our consolidated revenue until May 11th, 2023. EBITDA Margin for 9M FY24 was 10.60%. The increase in margins by 349 bps underscores our commitment to operational efficiency and resource optimization through rigorous value engineering processes which also optimized our manpower. Moreover, the dissociation of the loss-making subsidiary has positively impacted our EBITDA margins, signalling improved profitability.

Typically, second and third quarters usually represent peak sales periods for our industry, resulting in increased volumes during the quarter. Notably, Lock Systems have majorly contributed to the increased sales volumes and revenues during the quarter.

I extend my sincere appreciation to the entire team at Pavna Industries Limited for their unwavering dedication and hard work, which have been instrumental in our continued success. I also express gratitude to our valued shareholders for their unwavering support and insightful contributions, which drive our determination to thrive in the ever-evolving market conditions."

Shares of Pavna Industries Limited was last trading in BSE at Rs. 500.05 as compared to the previous close of Rs. 518.30. The total number of shares traded during the day was 119 in over 16 trades.

The stock hit an intraday high of Rs. 518.00 and intraday low of 500.00. The net turnover during the day was Rs. 60599.00.