Established in 1981, Frontier Springs started with the production of Leaf Springs and Laminated Bearing Springs for Automobiles and Railways. Steadily as the railways modernized, so did the company and within a few years had expanded its plant to accommodate the high demand for Coil Springs for wagons, coaches, and locomotives for the Indian Railways and many more clients.
It has been preferred manufacturers for the following springs with the Indian Railways and BHEL:
- Springs for LHB Coaches
- Suspension Coil Springs for Freight Stock
- Suspension Coil Springs for Coaching Stock
- Suspension Coil Springs for Diesel and Electrical Locomotives (EMD, WAG 9, WAG 7, etc.)
- CLH and VLH Coil Springs for Power Sector (BHEL)
Frontier Springs comprises three different units all working in synergy to fulfill the demands of clients and also developing new products periodically.
• Spring Division- In Kanpur, Uttar Pradesh and Paonta Sahib, Himachal Pradesh
• Forging Division- In Kanpur, Uttar Pradesh
• Colour Coated Roofing Sheets Division- In Paonta Sahib, Himachal Pradesh
The company adopts updated technology throughout its processes of manufacturing which is why it is always moving forward and has systematically grown over the years. Its fully equipped laboratory is one such example of its willingness to adopt all the latest techniques that science has to offer in Industry.
The main aim of Frontier Springs is to manufacture the springs of the best quality and international standards at low cost. To achieve this various processes are undertaken at each and every stage of manufacturing which involve different kinds of testing techniques where its state of the art laboratory is put to use.
In the future it is planning on further expansion and development of more forging components for Railways, Heavy Engineering Industries, Defence etc.
Is a market leader in the niche segment
The company's position as the market leader in the above mentioned niche segments is due to its persistent efforts and emphasis in the areas like product quality, introduction of new products through in-house development, competitive pricing and extremely competitive cost structure, continuous product improvement and dynamic approach to situation.
Quarter results
For the quarter ended March 2019, it registered a 41% jump in sales to Rs 24.32 crore. OPM jumped 230 basis points to 16.3% which saw OP rise 64% to Rs 3.95 crore.
Other income grew from Rs 11 lakh to Rs 19 lakh and interest cost fell 49% to Rs 19 lakh. As depreciation grew 19% to Rs 69 lakh, PBT jumped 107% to Rs 3.26 crore.
Tax fell 50% to Rs 49 lakh, after which PAT grew 359% to Rs 2.77 crore.
FY 2019 results
In FY 2019, it registered a 40% jump in sales to Rs 83.13 crore. OPM rose 140 basis points to 15.2% which saw OP rise 54% to Rs 12.65 crore.
Other income grew from Rs 55 lakh to Rs 70 lakh and interest cost fell 37% to Rs 83 lakh. As depreciation grew 14% to Rs 2.22 crore, PBT jumped 87% to Rs 10.30 crore.
Tax fell 2% to Rs 1.90 crore, after which PAT grew 136% to Rs 8.40 crore.
Since FY 2017, the company has been procuring some profitable orders from Indian Railways, BHEL, BEML and other heavy industries and the management expects the same to continue going forward.
Valuation
The stock trades at Rs 233.
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