Automobile ancillary company Endurance Technologies Limited (Endurance) reported slightly lower than expected numbers for Q1FY19. Consolidated revenue was up 24% yoy (4% qoq) at Rs1,860cr, lower than the consensus estimate of Rs1,942cr. EBITDA was up 27% yoy (6% qoq) at Rs271cr, while EBITDA margin expanded 38bps yoy to 14.6%. EBITDA and EBITDA margin missed the consensus estimate of Rs297cr and 15.3%, respectively. Consolidated PAT was up 29% yoy (7% qoq) at Rs125cr, marginally missing the consensus estimate of Rs128cr.
Owing to the pass-through clause with most of its clients, albeit with a lag, Endurance has managed to keep gross profit margin in the 40-42% range over past several quarters. Aftermarket segment, which enjoys higher margins and margin flexibility compared to OEM business, constitutes ~5% of total revenues.
Margin expansion (yoy basis) during the quarter was led by lower operating expenses and employee cost (as % of sales).
Endurance Technologies Ltd ended at Rs1,470, down 35.4 points, or 2.35%, from its previous close of Rs1,505.40 on the BSE. The scrip opened at Rs1,493.50 and has touched a high and low of Rs1,509.90 and Rs1,466.50, respectively. A total of 39,749 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.
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