Automotive Axles is a joint venture between the Kalyani Group and Arvin Meritor Inc., US (formerly the automotive division of Rockwell International Corporation). Both promoters hold 35.52% each, totalling 71.04%.

The operating income grew by marginal 6% to Rs 295.53 crore in March 2012 quarter. Lower raw material costs offset the impact of moderate sales thereby retaining OPM at 12.5% and enabling 6% growth in operating profit to Rs 36.83 crore. Raw material costs, as % to sales net stock adjusted, crashed by 230 bps to 70%. However the other expenditure grew by 80 bps to 11% while the staff cost grew by 70 bps to 5%.

The PBT grew by flat 4% to Rs 28.75 crore limited by higher depreciation and interest costs which offset the stupendous growth in other income. The other income surged to Rs 1.59 crore from Rs 0.10 crore in March 2011 quarter. However 19% growth in depreciation costs (to Rs 6.88 crore) and 77% spike in interest cost (to Rs 2.80 crore) limited the profits. Nonetheless, 20 bps fall in tax rate lifted the net profit though to marginal 5% to Rs 19.25 crore.

In half year ended March 2012, the topline grew by healthy 29% to Rs 588.08 crore. Fall in raw material costs led to 10 bps increase in OPM to 12.6%. Thus the operating profit grew by healthy 30% to Rs 73.99 crore. Impressive other income and marginal depreciation cost limited the impact of doubled interest cost on the profits. Thus the PBT grew by robust 32% to Rs 57.48 crore. However 90 bps hike in effective tax rate limited the growth in net profit though to healthy 30% to Rs 36.55 crore.

The promoters' share in the total shareholding remains unchanged at 71.04% in March 12 quarter. The promoters' have pledged ‘nil' shares of the company.

The scrip is currently trading at Rs 521 on NSE.