Automotive reports healthy performance in Q3FY22
News: Automotive Axles reported a healthy performance in Q3FY22 with topline for the quarter coming in at Rs.374.4 crore, up 21% QoQ. EWBITDA in Q3FY22 was at Rs.35 crore with EBITDA margins at 9.3%, up 210 bps QoQ. PAT in Q3FY22 came in in at Rs.20 crore, nearly 2x on QoQ basis
Views: Sales growth for the quarter was marginally lower than the sequential volume growth witnessed at its key client i.e. Ashok Leyland. However savings were realised on the raw material as well as employee costs resulting in robust profitability for the quarter. We remain positive on the company as it is a key beneficiary of CV cyclical recovery domestically.