Girish Pai

Nirmal Bang

Equity Bottom-Up

<p>3QFY21 Result Update</p>
<h2>Sadbhav Engineering Ltd</h2>
<h3>Struggling towards a slow recovery</h3>
<p>Sadbhav Engineering (SADE) reported 26% YoY growth in revenue for 3QFY21 while for 9MFY21 revenue declined by 35% YoY. Assuming a similar recovery in execution in 4QFY21, FY21 revenue will reach ~Rs17bn, which is almost equivalent to its debtors. Trade receivables as of 31st Dec, 2020 stood at Rs16.3bn vs Rs16.9bn in 2QFY21. The debtor amount is not only high, it seems sticky and will require provisions/write-offs…</p>

<p>2QFY21 Result Update</p>
<h2>Sadbhav Engineering Ltd</h2>
<h3>Sluggish execution, pick-up expected by 4Q</h3>
<p>Sadbhav Engineering (SADE) reported weak 2QFY21 numbers as stretched working capital, delays in receiving mobilization advance, lockdown related labour problems and monsoon resulted in sluggish execution. While execution improved from 1QFY21 (up 79.5% QoQ), it was still down 27% YoY. For 2QFY21, the company’s revenue stood at Rs4.1bn while EBITDA was down by 28.4% YoY at Rs498mn. Adj. net profit stood at…</p>

<p>1QFY21 Result Update</p>
<h2>Sadbhav Engineering Ltd</h2>
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<p><strong>Execution remains weak</strong></p>
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<p>Sadbhav Engineering (SADE) reported weak 1QFY21 numbers owing to multiple factors like lockdown, migration of labors, supply chain disruptions, working capital issues due to stretched finances and delay in payments from authorities. For 1QFY21, the company’s revenue stood at Rs2.3bn, down 72.6% YoY while EBITDA was down by 81.4% YoY at Rs195mn. Adj. loss stood at Rs266mn vs PAT of Rs1.05bn in 1QFY20 primarily due to…</p>
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<p>4QFY20 Result Update</p>
<h2> Sadbhav Engineering Ltd</h2>
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<h3>Awaiting further balance sheet repair</h3>
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<p>Sadbhav Engineering (SADE) reported weak 4QFY20 numbers as the company continued to grapple with working capital issues and delayed start of construction for various projects. For 4QFY20, the company’s revenue stood at Rs4.09bn, down 60% YoY while EBITDA was down by 60.2% YoY to Rs0.5bn, Adj. PAT declined by 71.7% to Rs82mn primarily due to exceptional gain of Rs170mn. The company reported loss at PBT…</p>

India

Sadbhav Engineering Limited provides construction services, with a focus on irrigation, roads and highways, and mining operations.  The Company constructs earthen dams and canals, rehabilitates and upgrades roads, and excavates overburden of mineral properties.

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