Automotive Axles

PAT down 85% largely on weak operating show

Feb 17, 2020 04:02 IST capital market

Automotive Axles (AAL), an equal (35.5%) joint Venture between Kalyani Group and USA based Meritor Group and also the largest independent axle and brake manufacturers in India, catering to several large M&HCV OEMs, specialty and defence OEMs has registered 85% fall in standalone net profit to Rs 4.52 crore for the quarter ended Dec 2019. Sharp fall in bottom-line is largely due to a sharp fall in sales by 65% to Rs 164.71 crore and 250 bps in operating profit margin to 9% thus dragging the operating profit down by 74% to Rs 14.78 crore. With interest and depreciation as % of sales stand higher the fall at PBT accentuated to 85% to Rs 6.79 crore. But for higher other income and lower taxation, the fall at bottom-line would have been much steeper than reported.

Quarterly performance

Sales was down by 66% to Rs 164.71 crore with continued end user demand for automotive. Lower sales together with 250 bps fall in OPM to 9%, has resulted in 74% fall in operating profit to Rs 14.78 crore. The other income was up by 152% to Rs 1.81 crore and thus the PBIDT was down by 71% to Rs 16.58 crore.

The interest cost was up by 358% to Rs 0.71 crore and the depreciation was down by 21% to Rs 9.09 crore. Thus the PBT was down by 85% to Rs 6.79 crore. With taxation stand lower by 84% to Rs 2.26 crore, the PAT was down by 85% to Rs 4.52 crore.

Nine-month performance

Sales was down by 46% to Rs 783.20 crore hit by subdued demand for M&HCV in domestic market. The operating profit margin for the period eroded by 140 bps to 10.3% and that along with lower sales resulted in 53% fall in OP to Rs 80.49 crore. The PBT was down by 58% to Rs 56.80 crore after accounting for higher other income, higher interest and depreciation as % of sales.

With EO expense being Rs 2.02 crore against nil in the corresponding previous period, the PBT after EO was down by 60% to Rs 54.77 crore. With taxation down by 57% to Rs 19.39 crore, the PAT was eventually lower by 61% to Rs 35.38 crore.

Automotive Axles : Standalone Results

 

1909 (3) 1809 (3) Var. (%) 1909 (6) 1809 (6) Var. (%) 1903 (12) 1803 (12) Var. (%)
Sales 164.71 485.78 -66 783.20 1457.95 -46 1939.04 1553.54 25
OPM (%) 9.0 11.5 10.3 11.7 11.8 10.8
OP 14.78 55.79 -74 80.49 170.57 -53 229.09 167.06 37
Other inc. 1.81 0.72 152 5.26 2.49 111 2.96 4.52 -35
PBIDT 16.58 56.51 -71 85.75 173.06 -50 232.05 171.58 35
Interest 0.71 0.15 358 1.36 0.54 154 0.55 0.55 0
PBDT 15.88 56.35 -72 84.39 172.52 -51 231.50 171.03 35
Dep. 9.09 11.45 -21 27.59 36.19 -24 46.19 43.21 7
PBT 6.79 44.90 -85 56.80 136.33 -58 185.31 127.82 45
EO Exp 0.00 0.00 2.02 0.00 0.00 0.00
PBT after EO 6.79 44.90 -85 54.77 136.33 -60 185.31 127.82 45
Taxation 2.26 14.35 -84 19.39 44.74 -57 63.76 43.89 45
PAT 4.52 30.55 -85 35.38 91.60 -61 121.55 83.93 45
EPS (Rs)* # # # # 80.4 55.5
* EPS is on current equity of Rs 15.112 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

Powered by Capital Market - Live News

Related Story