Earnings|AIA Engineering Ltd (NSE:AIAENG): Q3FY23 Results Out; Total Income rise 51% YoY

AIA Engineering Ltd (NSE:AIAENG) is a leading manufacturer of high-chrome grinding media, liners, vertical mill spares, and diaphragms used in the cement, mining, and thermal power generation industries. It has a global presence and exports its products to over 120 countries. The company is headquartered in Ahmedabad, India.

AIAE has reported a total income of Rs. 1344.8 crore during the period ended December 31, 2022, as compared to Rs. 890.4 crore during the period ended December 31, 2021. The company has posted a net profit of Rs. 352.4 crore for the period ended December 31, 2022, as against a net profit of Rs. 138.15 crore for the period ended December 31, 2021. The company’s EPS has also increased to Rs.37.37 for the period ended December 31, 2022, from Rs.14.65 for the period ended December 31, 2021.

The company’s performance was led by growth in both volumes and realisations. Volume growth was particularly strong, with a 23% YoY increase to 71,439 metric tons per annum (mtpa). This was a positive surprise, as mining/non-mining volumes grew 8%/60% YoY, respectively. Incremental sales from its recently commissioned mining mill liner plant contributed to this growth.

In terms of volume growth in Q3FY23, mining volumes were up 8% YoY to 44,284 mtpa (from gold and copper ores along with the recently commissioned mining mill liner plant), while non-mining volumes grew 60% YoY to 27,155 mtpa (mainly from increased thermal demand). The conversion of new mines also led to strong volume growth.

The company expects incremental volume growth of 30-35kmtpa for FY23 and FY24. In terms of volume growth in Q3FY23, mining volumes were up 8% YoY to 44,284 mtpa (from gold and copper ores along with the recently commissioned mining mill liner plant), while non-mining volumes grew 60% YoY to 27,155 mtpa (mainly from increased thermal demand). The conversion of new mines also led to strong volume growth.

Overall, AIA Engineering Ltd.’s impressive Q3FY23 performance is a testament to its strong product portfolio, favorable product mix, and ability to pass on increased input costs to customers. The company’s growth prospects remain strong, given its ongoing focus on product innovation, R&D, and expansion in new markets.