Established in 1985, in technical and financial collaboration with Showa Corporation of Japan, Munjal Showa is among the pioneering global leaders in the manufacture of shock absorbers.

Munjal Showa products serve as original equipment to a wide range of Maruti Suzuki upper end cars and export models, Honda City car, complete range of Hero Honda Motorcycles, Kawasaki Bajaj Motorcycles, and Hero range of mini-motorcycles and mopeds and Honda Motorcycles and Scooters India (Pvt) Limited. In over a decade the Company's state-of-the-art Shock Absorbers, Front Fork, Struts and Window Balancers/Gas Springs have become symbols of reliability and quality for popular two and four wheeled vehicles.

Quarterly Performance:

For thefirst quarter ended June 18, the company has reported 12% increase in the total income from operations at Rs 442.39crore. The raw material cost as % of sales net of stock adjustments rose 100 bps to 75.4%. The other expenses (as % of sales net of stock adjustments)rose 14bps to 11.38%. Employee cost fell 3bps to 7.57%. Resultantly, operating margins dropped 120bps to 5.6% leading to 6% drop in operating profit to Rs24.94 crore.

With just 3% risein other income to Rs 5.71crore (vis a vis Rs 5.53 crore), PBIDT decreased by 5% to Rs 30.65crore. The company's interest cost was almost nil and depreciation charges fell 6% to Rs 6.7 crore. Thus, profit before tax decreased by 4% to Rs 23.95 crore. After 11% drop in tax provision at Rs 6.55 crore, (200 bps dropin tax rate), the company's net profit fell 1% at Rs 17.4crore.

Shares of Munjal Showa are currently trading around Rs 218 at BSE.