The auto component maker also saw its profit more than double in the fourth quarter. The profit was driven by robust performance across all business segments, including the ASK FRAS-LE joint venture as well as on one-time deferred tax gain.
20 May 2024 | 2649 Views | By Kiran Murali
Auto component maker ASK Automotive Ltd reported a 41 percent year-on-year growth in its net profit for the financial year 2024 while its profit during the fourth quarter more than doubled from the year-ago period. The profit was driven by robust performance across all business segments, including the ASK Fras-Le ...
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Auto component maker ASK Automotive Ltd reported a 41 percent year-on-year growth in its net profit for the financial year 2024 while its profit during the fourth quarter more than doubled from the year-ago period. The profit was driven by robust performance across all business segments, including the ASK Fras-Le joint venture as well as on one-time deferred tax gain.
ASK Automotive makes brake shoes and advanced braking systems for two-wheelers. The company also provides aluminum lightweighting precision solutions and safety control cables. Its customers include Honda Motorcycles, Hero MotoCorp, Royal Enfield, Ampere and Ather. It also exports components to companies such as Polaris and Aptiv.
The company’s consolidated profit after tax for the full financial year came in at Rs 173.8 crore, against Rs 123 crore in the financial year 2023. EBITDA, or operating profit, rose 26 percent on year to Rs 311 crore. Total revenue was at Rs 3,005 crore, up 17 percent.
“Led by the strong growth of the 2W segment driven by favourable macroeconomic conditions, we have achieved remarkable success in the domestic market and witnessed strong growth in exports. We are observing a healthy order book,” Chairman and Managing Director Kuldip Singh Rathee said in a press release.
ASK Automotive sustained market leadership in the advanced braking system business with a 7 percent growth in the year. The aluminum lightweighting precision solutions revenue grew by 29 percent while the safety control cable sales rose by 36 percent. Revenue from the electric vehicle segment jumped 133 percent to Rs 120.44. Exports grew 58 percent to Rs 146.64 crore.
The company’s operating profit margin improved by 80 basis points to 10.4 percent. The double-digit margin reflects higher volume, improved product mix and focus on cost optimization. Net profit growth was further boosted by Rs 16.5 crore from the share of profit from the ASK Fras Le JV, compared with a loss of Rs 58.9 crore in FY23. “This (PAT) includes a one-time deferred tax gain of Rs 683 lacs (Rs 68.3 crore) in FY24,” the company said.
Meanwhile, ASK Automotive’s consolidated profit after tax for the fourth quarter more than doubled to Rs 47.8 crore from Rs 22.5 crore in the year-ago period. Total revenue during the period rose 37.6 percent on year to Rs 785.86 crore.
Operating profit jumped 70.1 percent on year to Rs 85.67 crore and EBITDA margin improved to 10.9 percent from 8.8 percent.
The company noted that its fourth-quarter profit after tax includes a one-time deferred tax gain of Rs 3.51 crore in wholly-owned subsidiary ASK Automobiles Pvt Ltd during the quarter. The share of profit from the joint venture was Rs 10.6 crore, compared with Rs 5.2 crore in the year-ago period.
ASK Automotive invested Rs 380 crore in FY24 to set up its new largest manufacturing facility in Karoli, Rajasthan. The plant, which has started operations, is expected to generate cash profits in the first quarter of the current financial year.
The company now plans to invest Rs 200 crore for a manufacturing facility in Bengaluru to cater to OEMs in South India. The plant is expected to be operational by the fourth quarter of this year. The board has also declared a dividend of Rs 1 per equity share.