DISA India Ltd , a leading manufacturer of foundry and surface preparation equipment, has released its financial results for the second quarter. The company demonstrated resilience in a challenging market environment, with mixed performance across key financial metrics.

Revenue Growth and Profit Margins

DISA India reported a consolidated revenue of ₹1,040.00 million for the quarter, marking a significant increase of 19.95% compared to ₹867.00 million in the same period last year. This robust top-line growth reflects the company's strong market position and ability to capitalize on demand in the foundry equipment sector.

However, the company's net profit saw a slight decline:

The marginal decrease in net profit despite revenue growth suggests increased operational costs or competitive pricing pressures in the market.

Operational Performance

DISA India's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a healthy increase to ₹144.00 million, up from ₹121.00 million in the previous year, representing a growth of 19.01%. This improvement in operational performance is noteworthy, especially considering the challenging economic environment.

The EBITDA margin remained relatively stable at 13.92%, compared to 13.90% in the same quarter last year, indicating that the company has managed to maintain its operational efficiency despite the increase in revenue.

Financial Position and Outlook

While the quarterly results show a mixed picture, DISA India's year-to-date performance provides additional context:

The half-yearly figures demonstrate that DISA India has maintained a growth trajectory in both revenue and profitability on a broader timescale.

Conclusion

DISA India's Q2 results reflect a company navigating through a complex market landscape. The substantial revenue growth is a positive indicator of the company's market strength and demand for its products. However, the slight dip in quarterly profits underscores the challenges in maintaining margins amidst rising costs.

As DISA India moves forward, investors and industry observers will be keen to see how the company balances its growth strategies with profitability in the coming quarters. The stable EBITDA margin and overall half-yearly growth suggest that DISA India is well-positioned to capitalize on opportunities in the foundry and surface preparation equipment market, despite short-term fluctuations in quarterly performance.

DISA India Limited , a leading foundry machinery manufacturer, has reported mixed financial results for the first quarter. The company saw an increase in revenue but experienced a decline in profitability.

Revenue Growth

DISA India's consolidated revenue from operations increased by 6.3% to ₹1,019.70 crore, compared to ₹959.30 crore in the same quarter of the previous year. On a standalone basis, the company's revenue grew by 8.2% to ₹1,017.30 crore.

Profit Decline

Despite the revenue growth, the company's profitability took a hit. Consolidated profit after tax decreased by 14.2% to ₹130.40 crore, down from ₹151.90 crore in the corresponding quarter of the previous year. Standalone profit after tax also fell by 11.6% to ₹131.50 crore.

Earnings Per Share

The consolidated earnings per share (EPS) for the quarter stood at ₹89.67, showing a decrease from ₹104.46 in the same quarter of the previous year.

Order Backlog

DISA India maintains a healthy order backlog of ₹2,690.00 crore, indicating a strong pipeline of future business.

Operational Highlights

The company's financial results reflect a mixed performance:

Legal Update

DISA India is currently involved in a legal dispute concerning an arbitration award of ₹25.50 crore. The company has deposited ₹17.00 crore with the Karnataka High Court pending resolution of the case. This ongoing legal matter stems from an alleged unsatisfactory performance of equipment supplied to a customer in the past.

Subsidiary Closure

The company has completed the closure of operations of its subsidiary, Bhadra Castalloy Private Limited. This closure resulted in exceptional costs in the previous fiscal year, including impairment losses and severance pay.

DISA India's board of directors approved these financial results at their meeting held on August 11. The company continues to operate in a single segment of manufacturing and selling foundry machinery and machinery parts.