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Auto Parts & Equipment company ASK Automotive announced Q1FY25 results:
- Robust performance in Q1FY25 with Consolidated Total Income at Rs 865 crore, posting 31% YoY growth.
- All the three product segments continue to perform well and delivered robust revenue growth in Q1FY25.
- Sustained market leadership position in the Advanced Braking System business with 26% YoY growth in Q1FY25. The Aluminium Light Weighting Precision Solutions revenue grew by 39% in Q1FY25. The Safety Control Cables also recorded revenue growth of 33% in Q1FY25.
- Strong start of the year with EBITDA in Q1FY25 at Rs 103 crore, recording 59% YoY growth.
- Achieved EBITDA margins of 11.9% in Q1FY25, an improvement of 210 bps from Q1FY24 and 100 bps from Q4FY24. Improvement in margins is mainly driven by better economies of scale due to higher volumes, benefit from ramp up of production at new Karoli manufacturing facility and focus on cost optimization initiatives.
- Achieved PAT of Rs 57 crore in Q1FY25 with 63% YoY growth.
- EPS increased to Rs 2.88 in Q1FY25 against Rs 1.77 in Q1FY24; up 63% YoY.
- CRISIL revised outlook to Positive from Stable. Reaffirmed rating to A1 for Short Term and AA- for Long Term.
Commenting on the results, Kuldip Singh Rathee, Chairman and Managing Director said: “During Q1FY25, we delivered strong performance in our business and recorded significant growth of 31% in revenue, 59% in EBITDA and 63% in PAT on year-on-year basis. This is the highest ever absolute Revenue and EBITDA earned by us in any quarter in past. Also, we have yet again outperformed the 2W industry vehicle production growth in Q1FY25.
I am delighted to share that we achieved EBITDA margins of 11.9% in Q1FY25 which is 210 bps higher than Q1FY24 and 100 bps as compared to Q4 FY24. Now our aim is to sustain this level of EBITDA margins and improve gradually in the subsequent quarters. This reflects the result of our continued focus on expanding value-added businesses, improving utilization of production capacities and bringing cost efficiencies.
We are also now benefitting from ramp up of our new mega manufacturing facility at Karoli which is resulting in delivering better performance by us. Further, construction work for our new plant at Bengaluru has started and is progressing well as per plan.
Our credit rating by CRISIL have been reaffirmed to A1 for Short Term and AA- for Long Term with outlook revised to Positive from Stable. This is testimony of the strength of our business and its future growth prospects.
In Q1FY25, as per SIAM, the Two-Wheeler segment posted a strong growth of 19.6% in vehicle production compared to same quarter last year. With positive outlook on monsoon and coming festive season, the two-wheeler Sector is expected to continue the growth momentum for the remaining part of the year.”
I firmly believe that we are in midst of exciting times both as a country and as an Industry. The recently announced government budget is a growth-oriented budget reflecting policy continuity and stability. There are several initiatives aimed at strengthening manufacturing, infrastructure development and employment creation which are expected to bolster economic activity of the country. We are committed to harness these opportunities to drive our business growth in future.
We are hopeful of outperforming the industry growth in the subsequent quarters of FY25. We are committed to keep contributing towards the value creation for our Stakeholders and Investors.”
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