INDUS Holding AG Reports Solid Fiscal Year 2023 Results Amid Challenging Market Conditions

INDUS Holding AG demonstrated resilience with their FY23 financial outcomes, managing to maintain sales at €1.80bn amidst a challenging macroeconomic environment. The company saw an 11.9% year-on-year increase in EBIT to €150m, with lower impairments significantly contributing to the financial stability of the firm. Adjusted EBIT, excluding impairments, was reported at €169m, slightly down by 4.3% from the previous year. INDUS Holding AG's capital markets day in Frankfurt revealed optimistic growth plans supported by a record high free cash flow (FCF) of €199m, evidencing a robust financial position that backs future acquisitions and dividend attractiveness.

The Engineering and Infrastructure segments of INDUS exhibited mixed results, with a slight uptick in Engineering sales and a stable performance in Infrastructure, despite cost pressures. The Materials segment faced a minor setback with a 2.7% decrease in sales. However, overall margins remained strong across the board, showcasing operational efficiency. The company has earmarked €70m for acquisitions in the coming fiscal year, targeting areas like infrastructure networks and energy technologies. This strategy underlies INDUS's ambition to capitalize on the current market valuations and strengthen its portfolio.

A proposed dividend of €1.20 per share reflects the company's commitment to shareholder returns, supported by the divestment of its underperforming automotive segment and consistent operational success. With plans to increase the dividend payout and a goal to grow EBIT to over €200m, INDUS Holding AG presents a compelling proposition for investors, underscored by a valuation that appears undemanding at the current levels. A BUY recommendation with a target price of €36 further solidifies confidence in the company’s financial health and growth trajectory.