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In the quarter ended June 10, Automotive Axles, rear axle assemblies' manufacturer, recorded net profit growth of whopping 443% to Rs 14.55 crore on both robust operating performance and supportive non operating performance. The operating income grew by impressive 198% to Rs 196.17 crore backed by robust growth in both domestic sales and exports. With increase in OPM by 250 bps boosted the operating profit by impressive 263% to Rs 27.50 crore. Crash in interest cost and marginal growth in depreciation cost lifted the net profit by whopping 443% to Rs 14.55 crore.
Quarter Performance
The company's operating income grew by whopping 198% to Rs 196.17 crore backed by impressive sales at both markets especially the domestic. The domestic sales, that contribute 97% to total, grew by significant 199% to Rs 190.50 crore. The exports too improved by whopping 152% to Rs 5.67 crore. Increase in operating profit margin (OPM) by 250 bps to 14.0% boosted the operating profit by whopping 263% to Rs 27.50 crore. In terms of cost, as % to sales net stock adjusted, the raw material cost grew by 250 bps to 70%. On the other hand, the staff cost and other expenditure reduced by 380 bps to 6% and 40 bps to 10% respectively.
The PBT further grew by whopping 453% to Rs 22.04 crore thanks to downfall in interest cost and marginal depreciation cost. The interest cost slipped by notable 51% to Rs 0.65 crore while the depreciation cost grew only by 16% to Rs 5.39 crore. The only partial dampener was the 76% downfall in other income to Rs 0.58 crore. The increase in effective tax rate by 130 bps limited the growth in net profit though to whopping 443% to Rs 14.55 crore.
Nine Month Performance
In nine month ended June 2010, the company ‘s topline grew by impressive 193% to Rs 502.76 crore largely on account of domestic sales that contributes 96% to total. The domestic sales grew by whopping 209% to Rs 484.50 crore while the exports grew by 22% to Rs 18.26 crore. The OPM increased by 310 bps to 13.6% lifting the operating profit by significant 279% to Rs 68.59 crore. Crash in interest cost by notable 47% to Rs 2.15 crore and marginal growth in depreciation cost by 11% to Rs 15.72 crore boosted the PBT before EO to whopping Rs 52.71 crore from Rs 2.72 crore in nine months ended June 2009. Further with nil EO expense (against Rs 0.27 crore in nine months ended June 2009), the PBT after EO stood at impressive Rs 52.71 crore compared to Rs 2.45 crore in nine month ended June 2009. On accounting tax provision, the net profit settled at Rs 34.59 crore from Rs 2.70 crore in nine month ended June 2009.
The promoter's % of share holding is constant at 71.04% as on quarter ended June ‘10. The promoters' have pledged ‘nil' shares of the company.
The scrip is trading at Rs 489 on BSE
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