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In the quarter ended Dec 10, Automotive Axles, rear axle assemblies' manufacturer, almost met the market expectation with robust 52% growth in net profit to Rs 9.76 crore on healthy operating performance, marginal non operating expenses and crash in effective tax rate. The topline grew by healthy 32% to Rs 179.46 crore backed by growth across both markets. Operating profit margin (OPM) grew by 50 bps on fall in raw material cost thereby lifting the operating profit by healthy 37% to Rs 22.23 crore.
Quarter Performance
The operating income grew by healthy 32% to Rs 179.46 crore in Dec 2010 quarter backed by growth in both domestic sales and exports. The domestic sales, that contribute 94% to total, grew by 30% to Rs 169.58 crore. Also the exports spurted by impressive 71% to Rs 9.88 crore. Fall in raw material costs enabled 50 bps hike in OPM to 12.4%. Thus it lifted the operating profit by healthy 37% to Rs 22.23 crore. Raw material cost, as % to sales net stock adjusted, declined by 30 bps to 72%. Also the staff cost reduced by 60 bps to 6%. Only the other expenditure grew by 90 bps to 10%.
The PBT grew by robust 42% to Rs 16.12 crore aided by marginal growth in non operating expenses though partially limited by fall in other income. The other income crashed by 91% to Rs 0.08 crore. On the other hand, interest cost grew by only 20% to Rs 0.98 crore while the depreciation cost grew by marginal 5% to Rs 5.22 crore. Further fall in effective tax rate by 380 bps enabled a robust net profit growth of 52% to Rs 9.76 crore.
Company has purchased brake manufacturing facilities consisting of Building, Plant and Machinery from Kalyani Global Engineering Pvt Lid for a consideration of Rs 224 lakhs on 3rd January. 2011.
The promoter's % of share holding is constant at 71.04% as on quarter ended Dec ‘10. The promoters' have pledged ‘nil' shares of the company.
The scrip is trading at Rs 390 on BSE
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