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 second quarter ended September 2015 rose by 10 bps to 12.4% due to decreased raw material expenses. Raw material cost (as a % to sales, net of stock) fell 100 bps at 57.7%. Other expenses (% of sales net of stock) rose by 90 bps to 15.6%. Employee expenses rose 90 bps to 12.8%.

Thus the operating profit rose 13% to Rs 29.29 crore. Other income registered nine fold rise to Rs 37 lakh vis a vis Rs 4 lakh. After 5% rise in depreciation cost to Rs 8.03 crore and 17% rise in interest expense to Rs 3.29 crore, PBT rose 19% at Rs 18.34 crore. After 21% rise in tax provision (70 bps rise in tax rate) at Rs 5.8 crore, net profit stood at Rs 12.54 crore against profit of Rs 10.67 crore in previous corresponding quarter, a rise of 18%.

Half Year Performance

Topline and bottomline for the first half ended Sept 2015 increased by 13% and 18% to Rs 439.53 crore and Rs 22.06 crore respectively.

The OPM during the first half ended September 2015 stood at a steady 12.3%. Raw material cost (as a % to sales, net of stock) fell 80 bps at 57.8%. Other expenses (% of sales net of stock) rose by 6 bps to 15.24%. Employee expenses rose 10 bps to 11.9%.

Thus the operating profit rose 13% to Rs 53.9 crore. Other income registered three fold rise to Rs 72 lakh vis a vis Rs 24 lakh. After 4% rise in depreciation cost to Rs 15.86 crore and 7% rise in interest expense to Rs 6.4 crore, PBT rose 21% at Rs 32.37 crore. After 29% rise in tax provision (190 bps rise in tax rate) at Rs 10.31 crore, net profit stood at Rs 22.06 crore against net profit of Rs 18.76 crore in previous corresponding half, a rise of 18%.

For the fiscal ended March 31, 2015, the company's net profit stood at Rs 42.26 crore, rise of 13% on 15% rise in net sales at Rs 824.77 crore.

The promoters' have pledged nil shares of the company as on Sept 15. Promoter shareholding stands at 69.96%.

Shares of Fiem Industries are trading 5.2% higher at Rs 630 at BSE on 9 November 2015, the following trading session after earnings were announced.