Indra improves its profitability
Indra has improved its profitability by 14.6% and accelerated its revenue growth (+19.4) in the third quarter of 2022. Order intake in the first nine months of 2022 was up 21% compared to the first nine months of 2021, with double-digit growth in both Minsait and Transport & Defence.
Revenues in the first nine months of 2022 grew 14% compared to the first nine months of 2021, mainly thanks to Minsait (+19.0%). Revenue growth in Q3 2022 accelerated to 19.4% versus Q3 2021, with double-digit growth in both divisions. Foreign exchange contributed positively with € 50 million in the first nine months of the year, compared to € 41 million in the first nine months of the previous year.
EBIT for the first nine months of 2022 reached €204 million, up 19% year-on-year (excluding the capital gain on the sale of the San Fernando facility), thanks to improved operating margins in both divisions compared to the first nine months of 2021.
T&D's EBIT margin reached 11.3% and Minsait's EBIT margin reached 5.8% in the first nine months of 2022. Meanwhile, Free Cash Flow in the first nine months of 2022 was EUR 54 million compared to EUR 5 million in the first nine months of 2021, reducing the Net Debt/EBITDA ratio to 0.6x compared to 1.7x in September 2021.
Ignacio Mataix, CEO of Indra, gave a positive review of these results: "The highlights of the results for the first nine months of 2022 are the clear improvement in operating profitability, the acceleration in revenue growth, the sustained demand from our customers, which has shown no signs of weakness in this last quarter despite the weaker macroeconomic outlook in general, and again the strong cash generation in the third quarter of the year".
"The strength of commercial activity is well reflected in the double-digit growth of our order intake and backlog, which translates into double-digit growth in Indra's revenues as well," explained Ignacio Mataix, who also noted that "even more remarkable is the improvement in profitability, reflected in the year-on-year growth of the operating margin, driven by the growth in revenues, the improvement in the supply mix and the efficiencies achieved, and despite the environment of high wage inflation in the businesses and markets where we operate".
Indra's CEO pointed out that "once again, the positive cash generation in the first nine months of the year stands out, reaching 54 million euros, the best in the last ten years, reducing our financial leverage to 0.6x compared to 1.7x in September 2021", who also explained that "with one quarter to go until the end of 2022, these solid results allow us to reiterate all our annual targets for 2022, which we had already increased in our previous earnings communication, all in a context of a general worsening of the global macroeconomic environment".
