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In the quarter ended March 2011, Automotive Axles, rear axle assemblies' manufacturer, recorded robust 46% growth in net profit to Rs 18.40 crore though largely limited by high raw material prices and unfavourable non operating performance. The topline grew by impressive 63% to Rs 278.14 crore. It included the sales of Rs 51.98 crore from recently acquired brakes business. However fall in OPM by 210 bps, spurt in interest cost by 129% and crash in other income by 80% constrained the PBT growth to 43% to Rs 27.57 crore. Aided by fall in effective tax rate, the net profit improved by 46% to Rs 18.40 crore.
Company has purchased brake manufacturing facilities consisting of Building, Plant and Machinery from Kalyani Global Engineering Pvt Lid for a consideration of Rs 224 lakhs on 3rd January. 2011. Thus the results for the quarter ended and half year ended March 2011 are not comparable with their corresponding previous periods.
Quarter Performance
The net sales grew by impressive 63% to Rs 278.14 crore in March 2011 quarter aided both domestic and export demand. The domestic sales grew by 64% to 268.12 crore while the exports increased by 47% to 10.02 crore contributing in ratio of 96:4 to the net sales. The net sales also included the sales of Rs 51.98 crore from recently acquired brakes business. The OPM fell by 210 bps to 12.5% on increased raw material costs limiting the growth in operating profit to 40% to Rs 34.83 crore. The raw material cost, as % to sales net stock adjusted, grew by 230 bps to 73%. Also the other expenditure rose by 20 bps to 10%. Only the staff cost reduced by 60 bps to 5%.
The PBT grew by robust 43% to Rs 27.57 crore though limited by interest cost and other income. The other income crashed by whopping 80% to Rs 0.10 crore while the interest cost grew by significant 129% to Rs 1.58 crore. Only the growth in depreciation cost was 8% to Rs 5.78 crore. Aided by the crash in effective tax rate by 170 bps, the net profit was lifted by notable 46% to Rs 18.40 crore.
Half Year Performance
The operating income grew by robust 49% to Rs 457.60 crore in half year ended March 2011. The domestic sales grew by 49% to Rs 437.70 crore while the exports grew by robust 58% to Rs 19.90 crore. Fall in OPM by 90 bps to 12.5% constrained the operating profit growth to 39% to Rs 57.06 crore. Crash in other income (by 87%) and increase in interest cost (by 70%) restricted the growth in PBT to 42% to Rs 43.68 crore. Nevertheless, fall in effective tax rate by 240 bps lifted the net profit by robust 48% to Rs 28.16 crore.
The promoter's % of share holding is constant at 71.04% as on quarter ended March 2011. The promoters' have pledged ‘nil' shares of the company.
The scrip is trading at Rs 450 on BSE
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