GNA Axles Q1 Review – Margins Above Estimates; Outlook Bright: IDBI Capital

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GNA Axles Ltd.’s Q1 FY22 result was above our estimates on all parameters.

Ebitda margin was higher due to lower other expenses.

GNA Axles’ revenue for the quarter stood at Rs 3.3 billion above our estimates on account of strong orders from export customers and domestic tractor players.

We believe NA class 8 truck market to grow by ~25%/15% in CY21/CY22 and domestic medium and heavy commercial vehicle truck market to grow at double digit in FY22 on the back of multi-year low base and economic recovery.

The government strong Infra push will create sustainable demand for tippers and trucks for construction activity.

Domestic tractor Industry to grow at single digit for FY22.

Click on the attachment to read the full report:

IDBI Capital GNA Axles Q1FY22 Result Update.pdf


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