JBM Autoreported 20% drop in net profit to Rs 17.03 crore (after adjusting for minority interest and share of loss/profit of associates) for first quarter ended June 2015 against Rs21.42 crore in the corresponding quarter of previous year on 6% drop in topline to Rs 364.3 crore. Strong performance at the operational level was witnessed at one hand but big rise in interest and depreciation charges led to drop in net profits for the quarter.

JBM Auto is engaged in the manufacture of sheet metal components, assemblies, sub- assemblies, tools, dies and moulds. The company operates through three main divisions namely Sheet Metal Division, Tool Room Division and special purpose vehicle (SPV).

Quarter Performance

The OPM during the first quarter ended June 2015 rose 180 bps to 15.2% due to decreased raw material and other expenses. Raw material cost (as a % to sales, net of stock) fell 360 bps to 66.4%. Other expenses (% of sales net of stock) rose 80 bps to 8.3%. Employee expenses rose 190 bps to 10.4%.

Thus the operating profit rose 6% at Rs 55.39 crore. Other income rose 75% at Rs 1 crore. Thus PBIDT rose 7% at Rs56.39 crore. After 40% risein depreciation cost to Rs13.97crore and 51% rise in interest expense to Rs12.97 croe, PBT after EO fell 19% at Rs 29.45 crore. After 30% drop intax provision at Rs8.59 crore (460 bps drop in tax rate), PAT stood at Rs20.76 crore, drop of 13%.

The components division, forming 94% of the company's revenues registered 5% growth in sales to Rs 342.6 crore during the first quarter. Profits from the division surged 48% at Rs 38 crore. On the other hand, the Tool Rooms division forming the rest 6% of sales registered 66% drop in revenues at Rs 21.57 crores. PBIT from the segment fell 54% at Rs 7.81 crore. The Bus division registered loss of Rs 3.48 crore during the quarter.

AnnualPerformance:

For the fiscal ended March 31, 2015, the company's net profit stood at Rs76.41crore, rise of 52% on14% rise in net sales at Rs1557 crore.

The promoters' have pledged nil shares of the company as onJune 2015.Promoter shareholding stands at 61.98%.

Shares of JBM Autoare currently trading around Rs 150 at BSE.