PPAP Automotive

Will ride recovery in car industry

Aug 14, 2020 09:08 IST capital market

PPAP Automotive, a leading manufacturer of automotive sealing systems, interior and exterior automotive parts in India, has registered 81%fall in consolidated sales to Rs 17.68crore. As the passenger car production in the country decline by 84% in quarter ended June 2020, the fall in revenue of the company was in line with the end user industry. But with operating profit margin turn negative 71.3% compared to positive 16.6% in corresponding previous period, it was a loss of Rs 12.60 crore compared to a profit of Rs 15.24 crore in the corresponding previous period. Other income was down by 53% to Rs 0.10 crore and thus the PBIDT was a loss of RS 12.50 crore compared to a profit of Rs 15.45 crore in the corresponding previous period. The interest was lower by 11% to Rs 0.58 crore and the depreciation was up by 1% to Rs 6.51 crore. Thus at PBT level it was a loss of Rs 19.59 crore compared to a profit of Rs 8.36 crore in the corresponding previous period. Share of loss from Associate & JV stand lower at Rs 1.09 crore compared to a profit of Rs 0.04 crore in the corresponding previous period. The PBT after EO was a loss of Rs 20.68 crore compared to a profit of Rs 8.41 crore in the corresponding previous period. With taxation being a write back of Rs 4.92 crore compared to a provision of Rs 260 crore in the corresponding previous period, the PAT was a loss of Rs 15.76 crore compared to a profit of Rs 5.80 crore in the corresponding previous period.

Yearly performance

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 Rs 50.72 crore. After accounting for lower OI, lower interest and depreciation, the PBT was a down by 52% to Rs 22.95 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 Rs 22.04 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.

Management Comment

Ajay Kumar Jain, CMD of PPAP, commenting on the performance said, Despite the Corona crisis, the Company was able to significantly contain the losses during this unprecedented period due to our flexible operations and high cost consciousness.

PPAP Automotive : Consolidated Financial Results

 

2006 (3) 1906 (3) Var. (%) 2003 (12) 1903 (12) Var. (%)
Sales 17.68 92.05 -81 359.51 410.98 -13
OPM (%) -71.3 16.6 14.1 18.8
OP -12.60 15.24 PL 50.72 77.20 -34
Other inc. 0.10 0.21 -53 0.58 1.07 -45
PBIDT -12.50 15.45 PL 51.31 78.27 -34
Interest 0.58 0.65 -11 2.64 4.05 -35
PBDT -13.08 14.80 PL 48.67 74.22 -34
Dep. 6.51 6.44 1 25.72 26.00 -1
PBT -19.59 8.36 PL 22.95 48.23 -52
Share of P/(L) from Assoc/JV -1.09 0.04 PL -0.91 0.32 -381
PBT before EO -20.68 8.41 PL 22.04 48.55 -55
EO Exp 0.00 0.00 0.00 0.00
PBT after EO -20.68 8.41 PL 22.04 48.55 -55
Provn for taxation -4.92 2.60 LP 3.84 14.81 -74
PAT -15.76 5.80 PL 18.20 33.74 -46
EPS (Rs)* # # 13.0 24.1
* EPS is on current equity of Rs 14.00 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

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