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GNA Axlesreported 42% rise in net profit to Rs11.08 crore on 5% rise in net sales to Rs145.07crore for the first quarter ended June 2017. Drop in interest cost and depreciation charges coupled with higher other income partly negated the weak operational performance thereby pulling up the bottomline. The quarter witnessed moderate dropin margins.At the PBIDT level, the company registered 6% rise in profit.
GNA is amongst the world's leading manufacturers of automotive transmission components. 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.
Quarter Performance:
The OPM during the first quarter ended June 2017 fell 40 bps to 15.8%due to increased employee and other expenses. Else, raw material cost (as a % to sales, net of stock) was steady at 62.6% during Q1FY18. Other expenses (% of sales net of stock) rose 90 bps to 16.8%. Employee expenses rose 10 bps to 5%.
Thus the operating profit rose 2% to Rs22.93crore. Other income stood at Rs 90 lakh vis a vis nil last year. PBIDT thus rose 6% to Rs 23.83 crore. After 8% drop in depreciation cost atRs5.89 crore and 46% drop in interest expense to Rs2.09 crore, PBT rose 31% at Rs15.85 crore. After 10% risein tax provision (560 bps drop in tax rate) at Rs4.77 crore, net profit stood at Rs11.08crore against profit of Rs7.81crore in previous corresponding quarter, a rise of 42%.
Sales for year ended Mar 2017 had increased 1% at Rs513.41 crore. Net profit stood at Rs29.6 crore against profit of Rs25.96 crore in previous year, a rise of 14%.
The company is targeting 13-15% growth in FY18 if domestic market will perform better.
The company has finished its IPO through fresh issue of 63,00,000 equity shares at a price of Rs 207.
Shares of GNA Axles are currently trading around Rs 285 at BSE.
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