Revenue in Q4 increased sharply by 31% to Rs 469.07 crore, from Rs 359.08 crore in previous corresponding quarter.

Established in 1981, Automotive Axles is a joint venture of Kalyani Group and Meritor Inc., USA. It manufactures drive axles, non-drive axles, front steer axles, specialty & defence axles and drum & disc brakes, and provides these products to major domestic and global manufacturers of trucks & buses.

Quarter Performance

The OPM during the fourth quarter ended Mar 2018 rose 140 bps to 11.7% due to decreased employee expense and other cost. Raw material cost (as a % to sales, net of stock) rose 134bps to 70.34%. Other expenses (% of sales net of stock) fell 210 bps at 12.3%. Employee expenses fell 36bps to 5.7%.

Thus the operating profitrose 48% to Rs 54.71crore. Other income stood 112% higher at Rs 89 lakh. After 27% dropin interest charges to Rs19 lakh and 16% rise in depreciation cost to Rs 11.89 crore, the company's PBT rose 62% to Rs 43.52 crore. After 69% rise in tax provision to Rs 15.24 crore (150 bps rise in tax rate), net profit stood at Rs 28.28 crore, higher by 58%.

Full Year Performance:

Sales for FY17-18 rose 30% to Rs 1519.36 crore.

The OPM during year ended March 2018 rose 130 bps to 11% due to decreased cost on all fronts. Raw material cost (as a % to sales, net of stock) fell 19bps to 70.26%. Other expenses (% of sales net of stock) fell 53 bps at 12.38%. Employee expenses fell 48bps to 6.46%.

Thus the operating profit rose 47% to Rs 167.1crore. Other income stood 124% higher at Rs 4.52 crore. After 55% drop in interest charges to Rs55lakh and 10% rise in depreciation cost to Rs 43.21 crore, the company's PBT rose 70% to Rs 127.81 crore. After 71% rise in tax provision to Rs 43.88 crore (21 bps drop in tax rate), net profit stood at Rs 83.93 crore, higher by 70%.

Shares of Automotive Axles closed marginally higher at Rs 1567.95, at BSE on 08 May 2018, the day earnings were announced.