ICICIdirect.com has come out with its report on Supreme Infrastructure. According to the research firm, the weak performance of the company is expected to continue.
ICICIdirect.com's report on Supreme Infrastructure
Supreme Infrastructure (Supreme) reported a 3.2% YoY decline in topline to ~Rs 321.5 crore vs. our estimate of Rs 359.7 crore mainly due to slower execution, unavailability of work and a delay in release of funds by clients
EBITDA margins came in at 15.7%, contracting 11 bps YoY
The PAT de-grew 70.3% YoY to Rs 2.6 crore, below our estimate of Rs 6.8 crore mainly due to the topline miss
"Although the business environment is expected to improve with an economic recovery in sight, we remain wary of the company due to concerns over dismal order inflows and weak execution. Considering Supreme’s balance sheet, its high leverage (1.9x gross D/E) would continue to remain painful to its bottomline. Hence, we are dropping coverage on the company", says ICICIdirect.com research report.
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