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Automotive Axles registered strong earnings once again for the first quarter ended June 2018. Net Profit for the quarter rose124% to Rs 28.99 crore in Q1 FY19, against Rs 12.94crore in year-ago, driven by revenue as well as operational growth.
Revenue in Q1FY19 increased sharply by 62% to Rs 473.79 crore, from Rs 292.73 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 first quarter ended June 2018 rose 210 bps to 11.8% due to decreased raw material, employee expense and other cost. Raw material cost (as a % to sales, net of stock) fell 28 bps to 70.25%. Other expenses (% of sales net of stock) fell 120 bps at 11.7%. Employee expenses fell 50bps to 6.5%.
Thus the operating profitrose 97% to Rs 55.92crore. Other income stood 25% lower at Rs 90 lakh. After 80% risein interest charges to Rs18 lakh and 26% rise in depreciation cost to Rs 12.48 crore, the company's PBT rose 125% to Rs 44.16crore. After 128% rise in tax provision to Rs 15.17 crore (40 bps rise in tax rate), net profit stood at Rs 28.99 crore, higher by 124%.
Shares of Automotive Axles are currently trading around Rs 1300 at BSE.
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