Home
/
News
/

Motor Sich cuts EBITDA margin 15pp on 18% revenue growth in 9M13

Motor Sich cuts EBITDA margin 15pp on 18% revenue growth in 9M13

28 October 2013

Aircraft engine producer Motor Sich (MSICH UK) reported UAH 5,918 mln in revenue in 9M13, 18% higher yoy. The company’s EBITDA plunged 26% yoy (UAH 527 mln yoy) to UAH 1,511 mln, mainly caused by a negative difference between “other operating profit” and “other operating expenses” (which declined UAH 632 mln yoy). Motor Sich’s bottom line decreased 18% yoy to UAH 992 mln.

 

Alexander Paraschiy: While the company remains extremely profitable by itself (EBITDA margin was 26% in 9M13), its inflated “other operating expenses” are the key area of concern for us. So far, we have no clear explanation for this phenomenon, but given that net “other operating expenses” are constantly at the level of UAH 200 mln per quarter, we still believe the company’s bottom line remains predictable. We remain neutral on the Motor Sich investment case.

Latest News

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...