Incap: Q3 was better than consensus and FY guidance is unchanged - Nordea

Net sales was above consensus (Refinitiv) in Q3. Clean operating profit margin was also better than consensus in Q3. Inventory destocking effect was not as bad as feared during Q3 but the full impact of the decreased volumes will become visible during the fourth quarter. However, relative profitability should remain good because Incap has reduced workforce by 1136 people in India to keep utilization ratios at healthy level. The company could even be able to grow organically in near future. Guidance for the full year 2023 was repeated and market consensus for the net sales in this year could even be upgraded after Q3 release we believe. However, uncertainty related to the biggest customer and delivery volumes in 2024 may remain.

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