Established in 1985, in technical and financial collaboration with Showa Corporation of Japan, Munjal Showa is among the pioneering global leaders in the manufacture of shock absorbers.

Munjal Showa products serve as original equipment to a wide range of Maruti Suzuki upper end cars and export models, Honda City car, complete range of Hero Honda Motorcycles, Kawasaki Bajaj Motorcycles, and Hero range of mini-motorcycles and mopeds and Honda Motorcycles and Scooters India (Pvt) Limited. In over a decade the Company's state-of-the-art Shock Absorbers, Front Fork, Struts and Window Balancers/Gas Springs have become symbols of reliability and quality for popular two and four wheeled vehicles.

Quarterly Performance

For the first quarter ended June 2017, the company has reported 2% increase in the total income from operations at Rs 395.07crore. The raw material cost as % of sales net of stock adjustments rose 80 bps to 74.4%. The other expenses (as % of sales net of stock adjustments) fell 110 bps to 11.2%. Employee cost rose by 22 bps to 7.6%. Resultantly, operating margins remained steady at 6.7% leading to 3% rise in operating profit to Rs 26.66 crore.

With 94% rise in other income to Rs 5.53 crore (vis a vis Rs 2.85 crore), PBIDT increased by 12% to Rs 32.19crore. The company's interest cost rose 600% to Rs 7 lakh and depreciation charges fell by 4% to Rs 7.14 crore. Thus, profit before tax increased by 18% to Rs 24.98 crore. After 18% risein tax provision at Rs 7.34 crore, (2 bps rise in tax rate), the company's net profit rose by 18% at Rs 17.64 crore.

Shares of Munjal Showa are trading 2.4% lower around Rs 223 at BSE on 10 Aug 2017, the following day after earnings were announced.