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 third quarter ended December 2015 rose by 80 bps to 12.9% due to decreased raw materialexpenses. Raw material cost (as a % to sales, net of stock) fell 210 bps at 56.1%. Other expenses (% of sales net of stock) rose by 30 bps to 15.5%. Employee expenses rose 80 bps to 12.3%.

Thus the operating profit rose 37% to Rs 33.42crore. Other income dropped 8% at Rs 59 lakh. After 10% rise in depreciation cost to Rs 8.39 crore and 47% rise in interest expense to Rs 4.24 crore, PBT rose 47% at Rs 21.38 crore. After 28% rise in tax provision (400 bps drop in tax rate) at Rs 5.72 crore, net profit stood at Rs 15.66 crore against profit of Rs 10.09crore in previous corresponding quarter, a rise of 55%.

Nine MonthPerformance

Topline and bottomline for the first nine months ended Dec 2015 increased by 18% and 31% to Rs 698.12 crore and Rs 37.73 crore respectively.

The OPM during the first nine months ended Dec 2015 stood at a steady 12.5%. Raw material cost (as a % to sales, net of stock) fell 120 bps at 57.2%. Other expenses (% of sales net of stock) rose by 50 bps to 15.6%. Employee expenses rose 80 bps to 12.7%.

Thus the operating profit rose 21% to Rs 87.3crore. Other income registered 50% increase to Rs 1.32 crore vis a vis Rs 88 lakh. After 6% rise in depreciation cost to Rs 24.24 crore and 20% rise in interest expense to Rs 10.64 crore, PBT rose 30% at Rs 53.76 crore. After 28% rise in tax provision (40 bps drop in tax rate) at Rs 16.03 crore, net profit stood at Rs 37.73 crore against net profit of Rs 28.83 crore in previous corresponding period, a rise of 31%.

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 newly set up unit of the company at Ahmedabad, Gujrat has started commercial production/supply wef 11 Jan 2016.

Shares of Fiem Industriesarecurrently trading around Rs 675 at BSE.