Key Points of the call:

The Company sold 10,764 vehicles during Q3 FY 2013-14 in compared to 9,173 vehicles in Q3 FY 2012-13, showing YoY growth of 17%.

The Sales revenue surged to Rs 122.89 crore in Q3 FY 2013-14 as compared to Rs 103.31 crore in Q3 FY 2012-13, YoY growth of 19%.

The operating EBITDA during the quarter grew by 20% to Rs 15.83 crore for Q3 FY 2013-14.

The Profit before tax during the quarter jumped by 21% to Rs 14.42 crore for Q3 FY 2013-14.

The Profit after tax during the quarter grew by 17% to Rs 9.66 crore for Q3 FY 2013- 14.

The scenario where the automobile sector is passing through is the decade's worst slowdown. The market has remained challenging. Unstable situations across the country and vehicle financing options have been the main reasons for weak growth. Until M&HCV shows growth, slowdown in 3 wheeler industry will continue.

In the 4Q FY 14, the company plans to maintain the growth momentum.

For the introduction of petrol 3 wheeler, the particular evaluation under technical team is going on and will be introduced in another couple of quarter's time.

There are 179 dealers as of date. Atul Auto is targeting to have pan India presence and cover 250 dealers by next year.

45% of sales are coming from Rajastahan and Gujarat. Sales do not come from Tamilnadu and West Bengal. Rest of sales come from 13-14 other states.

No plans for price hike in immediate future.

Regarding Sri Lankan project, the company is yet to receive the permission from govt.

Cargo segment of 3W has been stagnant for past 3-4 years. It will bounce back as it is last mile connectivity

Volume wise breakup of Atul Auto is 60% from passenger vehicles and 40% is cargo vehicles.

Scientifically it is 7 years life span for a three wheeler cargo vehicle. But depends on use and abuse of the product.

At this point time, company is in spending mode, over medium to long term, margin will improve once the scale of volumes improve.

The company increased capacity from 24K to 48K units at beginning of the year at capex of Rs 10 crore. Its working at 80% utilization. Has room for further 15-20% expansion in that plant.

New plant will be operational by FY 16. It will have capacity between 50K to 60K units. Total capex for the project will be around Rs 100 crore.

In current FY, the company expects 20% growth for itself, and so it plans to close FY 14 with sales of 40K units.

In FY 15, the company plans to do 50K units in sales.

The company buys tyres from MRF and CEAT.

Little bit of dilution of equity by promoters in the quarter was totally for personal requirement and there is no other intention. They are likely to maintain this level.

In next 2-3 years time, the brand of the company will be seen all across the country.