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.

Quarter Performance

The OPM during the first quarter ended June 2015 fell by 10 bps to 12.1% due to increased employee and other expenses. Raw material cost (as a % to sales, net of stock) fell 50 bps at 58%. Other expenses (% of sales net of stock) rose by 30 bps to 15.6%. Employee expenses rose 46 bps to 13%.

Thus the operating profit rose 12% to Rs 24.61crore. Other income almost doubled at Rs 35 lakh vis a vis Rs 19 lakh. After 3% rise in depreciation cost to Rs 7.82 crore and 2% drop in interest expense to Rs 3.11 crore, PBT rose 24% at Rs 14.03 crore. After 40% rise in tax provision (360 bps rise in tax rate) at Rs 4.51 crore, net profit stood at Rs 9.52 crore against profit of Rs 8.08 crore in previous corresponding quarter, a rise of 18%.

AnnualPerformance:

For the fiscal ended March 31, 2015, the company's net profit stood at Rs 42.26 crore, rise of 13% on15% rise in net sales at Rs 824.77 crore.

The promoters' have pledged nil shares of the company as onJune 2015.Promoter shareholding stands at 69.96%.

Shares of Fiem Industriesare currently trading around Rs 645 at BSE.