For
the quarter ending June 2023, Consolidated Net sales (including other operating income) of Fiem Industries has increased 6.76% to Rs 474.61 crore compared to quarter ended June 2022. Sales of Automotive segment has gone up 6.67% to Rs 472.99 crore (accounting for 99.66% of total sales). Sales of Others segment has gone up 40.90% to Rs 1.62 crore (accounting for 0.34% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 13.97% to Rs 51.84 crore. PBIT of Automotive segment rose 13.74% to Rs 51.91 crore (accounting for 100.13% of total PBIT). PBIT of Others segment rose 56.22% to Rs -0.07 crore (accounting for -0.13% of total PBIT).
PBIT margin of Automotive segment rose from 10.29% to 10.97%. PBIT margin of Others segment rose from negative 13.05% to negative 4.06%. Overall PBIT margin rose from 10.23% to 10.92%.
Operating profit margin has jumped from 12.66% to 12.82%, leading to 8.07% rise in operating profit to Rs 60.83 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 62.05% to 61.83%. Purchase of finished goods cost fell from 0.47% to 0.22%. Employee cost increased from 12.73% to 14.19%. Other expenses fell from 12.14% to 11.08%. Other income rose 277.42% to Rs 3.51 crore. PBIDT rose 12.44% to Rs 64.34 crore. Provision for interest rose 3.55% to Rs 1.75 crore.
PBDT rose 12.71% to Rs 62.59 crore. Provision for depreciation fell 9.72% to Rs 14.31 crore.
Profit before tax grew 21.67% to Rs 48.28 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 12.78 crore, compared to Rs 10.57 crore. Effective tax rate was 26.47% compared to 26.64%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 21.95% to Rs 35.50 crore. Promoters’ stake was 66.56% as of 30 June 2023 ,compared to 66.56% as of 30 June 2022 .
Full year results analysis.
Net sales (including other operating income) of Fiem Industries has increased 17.54% to Rs 1848.06 crore. Sales of Automotive segment has gone up 17.69% to Rs 1,840.53 crore (accounting for 99.59% of total sales). Sales of Others segment has gone down 10.47% to Rs 7.53 crore (accounting for 0.41% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 36.30% to Rs 206.81 crore. PBIT of Automotive segment rose 32.33% to Rs 207.35 crore (accounting for 100.26% of total PBIT). PBIT of Others segment rose 88.98% to Rs -0.55 crore (accounting for -0.26% of total PBIT).
PBIT margin of Automotive segment rose from 10.02% to 11.27%. PBIT margin of Others segment rose from negative 58.96% to negative 7.26%. Overall PBIT margin rose from 9.65% to 11.19%.
Operating profit margin has jumped from 12.34% to 13.45%, leading to 28.20% rise in operating profit to Rs 248.64 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 62.31% to 60.70%. Purchase of finished goods cost rose from 0.37% to 0.44%. Employee cost decreased from 13.22% to 13.07%. Other expenses rose from 11.75% to 12.30%. Other income rose 315.38% to Rs 10.8 crore. PBIDT rose 32% to Rs 259.44 crore. Provision for interest fell 13.50% to Rs 7.43 crore. Loan funds declined from Rs 45.67 crore as of 31 March 2022 to Rs 23.83 crore as of 31 March 2023. Inventories declined from Rs 184.74 crore as of 31 March 2022 to Rs 175.70 crore as of 31 March 2023. Sundry debtors were lower at Rs 140.80 crore as of 31 March 2023 compared to Rs 174.60 crore as of 31 March 2022. Cash and bank balance rose to Rs 183.12 crore as of 31 March 2023 from Rs 68.40 crore as of 31 March 2022. Investments declined from Rs 76.76 crore as of 31 March 2022 to Rs 0.25 crore as of 31 March 2023.
PBDT rose 34.08% to Rs 252.01 crore. Provision for depreciation rose 7.44% to Rs 63.39 crore. Fixed assets declined from Rs 507.28 crore as of 31 March 2022 to Rs 497.19 crore as of 31 March 2023. Intangible assets increased from Rs 1.37 crore to Rs 1.77 crore.
Profit before tax grew 46.26% to Rs 188.62 crore. Share of profit/loss was 95.65% higher at Rs -0.05 crore. Provision for tax was expense of Rs 48.74 crore, compared to Rs 33.65 crore. Effective tax rate was 25.85% compared to 26.33%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 48.50% to Rs 139.83 crore.
Equity capital stood at Rs 13.16 crore as of 31 March 2023 to Rs 13.16 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 66.56% as of 31 March 2023 ,compared to 66.56% as of 31 March 2022 .
Cash flow from operating activities increased to Rs 130.89 crore for year ended March 2023 from Rs 92.25 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 55.17 crore, compared to Rs 19.30 crore during the year ended March 2022.
Business highlights
Company’s
building, one part of Unit-7 situated at Plot No. 1915, Phase -V, Rai
Industrial Estate, Sonipat-131029 (Haryana) caught fire on June 13, 2023. There
were no human casualties reported. The assets are adequately covered by an
insurance policy and the company is in the process of filing insurance claim
for the loss incurred. The carrying value of inventories of Rs 25.83 crore
(including GST reversals) and carrying value of property plant and equipment of
Rs 25.19 crore have been written off in the statement of profit and loss during
the current quarter ended on June 30, 2023. The recoverable amount pertaining
to the loss of the inventory as stated above and loss to the extent of carrying
amount of the property plant and equipment have been shown as receivable as on
June 30, 2023.
In Q1 FY24, automotive segment contributed 99.66% to total revenue and
IPIS & LED luminaries 0.34%.
In terms of product mix, automotive lighting
contributed 33.94% to total revenue in Q1 FY24, Automotive LED lighting 39.41%,
plastic moulded parts 11.48%, rear view mirrors 11.07% and others 4.1%.
In Q1 FY24, domestic OEMs contributed 90.30% to total
revenue, domestic replacement market 7.85% and exports 1.85%.
During Q1 FY24, two-wheelers customers contributed
95.95% to total revenue and four-wheelers 4.05%.