- Sales for the period was up by 4% Rs103.53 croreeven as the quarter was marred by continuing pressure on the passenger vehicle industry and pandemic situation due to COVID 19. About over 99% of the sales of the company for the period come from passenger vehicle segment of Indian automotive industry especially from Maruti Suzuki and Honda.
- Lower OPM, a contraction of 380 bps to 13.6% was largely due to rise in material cost. The material cost was higher by 540 bps to 58.6%. However the staff cost was down by 200 bps to 15.8%. Similarly the OE was down by 30 bps to 11.8%. Though staff and OE stood lower they could not fully offset the rise in material cost thus have a drag on OPM.
- Other income was lower by 73% to Rs0.09 crore. The interest cost was down by 23% to Rs 0.66 crore and as % of sales it stood lower. The depreciation was down by 2% to Rs 6.44 crore in absolute terms but as proportion to sales it also stood lower. Thus the PBT (before P/L from JV/Assoc) was down by 30% to Rs 7.07 crore.
- Share of profit from JV/Associate was down by 11% to Rs 0.27 crore and thus the PBT (after P/L from JV/Assoc) stood lower by 30% to Rs7.34 crore. Eventually the PAT was down by 21% to Rs 5.85 crore with taxation stand lower by 51% to Rs1.49 crore.
Consolidated sales was down by 13% to Rs 359.51 crore and that together with 470 bps erosion in OPM to 14.1%, the operating profit was down by 34% to Rs50.72 crore. After accounting for lower OI, lower interest and depreciation, the PBT was a down by 52% to Rs22.95 crore. The share of loss from JV/Associates was higher at Rs 0.91 crore (against a profit of Rs 0.32 crore) the PBT was down by 55% to Rs22.04 crore. But with taxation stand lower by 74% to Rs 3.84 crore, the fall at PAT moderated to stand at 46% to Rs 18.20 crore.
The Company derived 98% of sales from the Passenger Vehicle segment of the Indian Automotive Industry. Maruti Suzuki including Suzuki Motors Gujarat continue to remain PPAPs top customer accounting for 56% of the Part Sales. The Companys second biggest customer, Honda has contributed 19% to the Companys topline of year.
The Company has started producing parts for the new models (Brezza&Ignis of MSL that got styling makeover and New Creta of Hyundai) launched during the quarter ended Mar 2020.
Ajay Kumar Jain, CMD of PPAP, commenting on the performance said, The entire world is facing the biggest challenge ever of a global pandemic. This pandemic has affected each and everyone of us. I hope we overcome this crisis with the minimum number possible of human causalities. The current focus is on survival. We are taking enough countermeasures to ensure that the company braves through this pandemic and emerges stronger when the demand revives.
PPAP Automotive : Consolidated Financial Results
|2003 (3)||1903 (3)||Var. (%)||2003 (12)||1903 (12)||Var. (%)|
|Share of P/(L) from Assoc/JV||0.27||0.31||-11||-0.91||0.32||-381|
|PBT before EO||7.34||10.44||-30||22.04||48.55||-55|
|PBT after EO||7.34||10.44||-30||22.04||48.55||-55|
|Provn for taxation||1.49||3.07||-51||3.84||14.81||-74|
|* EPS is on current equity of Rs 14.00 crore, Face value of Rs 10|
Quarterly financials is under IND AS & Fully year is under IGAAP **
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database
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