GNA Axles Q4 Review - Margin Below Estimates: IDBI Capital

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IDBI Capital Report

GNA Axles Ltd.'s Q4 FY21 results were above our estimates on revenue and Ebitda level whereas Ebitda margin was below our estimates due to higher raw material cost and higher operating expenses.

Revenue for the quarter stood at Rs 3.1 billion above our estimates on account of strong orders from export customers and domestic tractor players.

We believe North America Class 8 truck market to grow by approximately 40% in CY21 and domestic medium and heavy commercial vehicle truck market to perform relatively better in FY22 on the back of multi-year low base and economic growth recovery, higher road/construction activities whereas domestic tractor Industry to grow in single digit for FY22.

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