Automotive Axles (505010) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached INR 4,924.67 million with an operating margin of 29.8%.

• Revenue declined 7.4% sequentially, mainly due to lower MHCV market volumes.

• EBITDA margin for the quarter was 13.2%, slightly down from 13.5% year-over-year.

• Board approved unaudited financial results for the quarter ended June 30, 2024, and appointed an additional independent director effective August 7, 2024.

• Independent auditor's review found no material misstatements in the financial results.

Financial highlights

• Revenue from operations for Q1 FY25 was ₹4,924.67 million, down from ₹5,319.10 million in Q1 FY24.

• Profit before tax for Q1 FY25 was ₹463.15 million, compared to ₹508.84 million in Q1 FY24.

• Net profit for Q1 FY25 stood at ₹336.54 million, down from ₹375.48 million in Q1 FY24.

• Basic/Diluted EPS for Q1 FY25 was ₹22.53, compared to ₹25.03 in Q1 FY24.

• Other income increased due to higher returns on surplus cash.

Outlook and guidance

• MHCV market expected to be 5% lower in FY25 versus last year.

• Q3 and Q4 anticipated to perform better, with flat market expected in FY26.

• New product launches in bus and ICV brake segments targeted for Q3/Q4 FY25.

• Aspirational target for new bus axle is 20%-30% market share within 6-12 months post-launch.

• Management expects the new independent director's expertise to enhance governance and contribute to future success.