Elsewedy Electric [SWDY]
Egypt / Industrials / Q3 2021 Results
12M PT: EGP12.7 (+53%)
set on 28 Dec 2020
Investment Rating: Overweight | Risk Rating: Medium
Despite revenue growth, margins weighed on bottom line
Elsewedy Electric’s [SWDY] Q3 2021 revenues increased by 31% y/y to EGP14.9bn (+8% q/q), driven by an increase in the wires & cables segment. However, consolidated net income after minorities slipped 14% y/y to EGP704mn (-21% q/q) on a drop in GPM to 11.5%
(-6.1pp y/y, 3pp q/q) which came in 4pp below our expectations. While we were initially expecting a y/y slippage in net earnings in Q3 2021, earnings still came 9% short of our expectations. Generally speaking, profitability was primarily dented by the narrower margin of the wires & cables segment.
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Dina Abdelbadie
Equity Analyst
T +202 3300 5716