AIA Engineering reported sales of INR 1,093 crore in the second quarter of FY27, with EBITDA of INR 361 crore and profit after tax of INR 249 crore. EBITDA was down about 5% year over year on a reported basis, as higher export freight costs and lower non-operating income weighed on results.
The company sold 61,500 metric tons during the quarter, bringing first-half sales to about 126,000 metric tons. Management described the six-month volume as broadly flat year over year. First-half sales were INR 2,246 crore, EBITDA was INR 786 crore and profit after tax reached INR 550 crore.
Export freight costs were the main pressure on operating profitability, according to executive Sanjay Majmudar. He said they had risen by more than 3.5% year over year and amounted to about 10% of sales in the quarter, compared with a typical range of 7% to 8%. Management said gross margins were broadly comparable, while higher freight costs also contributed to an increase of about INR 178 in realization per ton.
AIA Engineering’s order backlog increased to INR 10.7 billion, above its usual range of INR 5 billion to INR 7 billion. Management attributed the rise to orders received late in the quarter, rather than delayed dispatches. Net working capital remained at about 129 days.
The company said its strategy remains focused on higher-value products, including its NGDS and liner-based solutions for mining customers. Trials are underway at several sites, but management said some have taken longer than expected and did not provide a firm schedule. Results could begin to become visible in the second half of FY27.
Kunal Shah said the company is internally planning for base growth of 25,000 to 30,000 metric tons a year in FY28 and FY29, while stressing that this is not formal guidance. AIA Engineering incurred INR 86 crore in capital expenditure in the first half and expects to spend a further INR 250 crore in the second half, including on land for its corporate house and other expenditure.
Sources: Investing.com News.