Established in 1993, GNA Axles is one of India's leading rear axle shafts manufacturer. Its products find applications across on-highway vehicles (LCV, MCV, HCV and buses, among others) and off -highway vehicles (agricultural tractors and machinery, forestry, construction equipment, defence and mining, among others). GNA Axles has a large variety of Axle Shafts ranging from 1.5kg to 65kg & capacity to produce upto 165kg producing about 2 million Axle Shafts annually. It also manufactures solid and hollow spindles used in assembling the axle for various vehicles and equipment.

Its products are widely used world over by the leading OEM manufacturers across USA, Sweden, Turkey, Brazil, Italy, Germany, Spain, Mexico, Japan, UK, France, China and Australia, among others. Besides, the company is also tier 1 suppliers to several Indian OEMs.

Quarter Performance:

The OPM during the first quarter ended June 2018 dropped 90 bps to 14.9%due to increased raw materialexpenses. Raw material cost (as a % to sales, net of stock) rose 280 at 65.4% during Q1FY19. Other expenses (% of sales net of stock) fell 200 bps to 15.8%. Employee expenses fell 80bps to 4.2%.

Thus the operating profit rose 38% to Rs 31.63crore. Other income stood at Rs 13 lakh, lower by 86%. PBIDT thus rose 33% to Rs 31.76 crore. After 35% rise in depreciation cost at Rs 7.94 crore and 10% rise in interest expense to Rs 2.3crore, PBT rose 36% at Rs 21.52 crore. After 57% risein tax provision (490 bpsrise in tax rate) at Rs 7.51 crore, net profit stood at Rs 14.01crore against profit of Rs 11.1crore in previous corresponding quarter, a rise of 26%.

Shares of GNA Axles closed 3.1% lower at Rs 397 on 20 July, 2018, the following day after earnings were announced.