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Fiem Industries is one of the leading manufacturers of automotive lighting & signaling equipments and rear view mirrors. Its major business comes from the two-wheeler segment of the vehicle industry. It also manufactures metals parts and plastic components for two and four wheelers.
Its diversified products portfolio ranging from rear view mirrors, head lamps, tail lamps, signalling lamp, roof lamps, wheel covers, warning triangle, complete rear fender assembly, frame assembly, mudguards, LED Display Panels and various sheet metal & plastic parts etc. is capable of catering to the needs of almost all segments of automobile industry viz., four-wheelers, LCVs, HTVs and tractors.
Around 71% of sales come from Lighting and Signaling Equipments and close to 13% comes from the Rear View Mirrors. Plastic Moulded Parts is the third biggest product line with 10% share in sales.
September 2013 quarter results- sales jump 25% and PAT soars 44%
The company has one foreign subsidiary i.e. Fiem Industries Japan Co ltd. The company has adopted the option of submitting standalone results.
Fiem Industries reported a 25% rise in sales to Rs 179.12 crore for the quarter ended September 2013.
OPM grew from 11.2% to 11.8% taking OP up 31% to Rs 21.15 crore.
Other income jumped 464% to Rs 70 lakh.
Interest cost grew 16% to Rs 3.69 crore and depreciation grew 19% to Rs 5.27 crore.
Thus PBT went up 49% to Rs 12.88 crore.
After providing for tax (up 62% to Rs 3.81 crore) PAT rose 44% to Rs 9.08 crore.
Six month results – sales are up 15% and PBT is up 34%
For the six months ended September 2013 the company reported a 15% rise in sales to Rs 331.13 crore.
OPM improved from 11.4% to 11.8% taking OP up 20% to Rs 38.92 crore.
Other income grew 240% to Rs 75 lakh. Interest cost fell 9% to Rs 7.39 crore and depreciation grew 18% to Rs 10.48 crore.
Thus PBT went up 38% to Rs 21.80 crore.
After providing for tax (up 49% to Rs 6.67 crore) PAT rose 34% to Rs 15.13 crore.
Has diversified in fast growing LED Lighting business
While the company will continue to solidify its position in Auto-component business by judiciously seizing the strategic growth opportunities and expanding its product portfolio, it has gone in for diversification since last year for manufacturing of LED Luminaries for indoor and outdoor applications such as Recess Panels, down lights, spot lights, LED Bulbs & LED Tribe Lights, Bay Lights, Flood Lights, Solar based Lantern and Street lights etc.
Valuation
The share price trades at Rs 205. P/E works out to 7.5.
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