The development comes amidst declining sales in FY24; finds solace in enhanced businesses from Maruti Suzuki and Toyota. Management expects revenue growth of 15% in FY25.
28 May 2024 | 5924 Views | By Shahkar Abidi
Rico Auto Industries, a Gurugram-based supplier of machined components and assemblies, specialising in both aluminium and ferrous materials for original equipment manufacturers, has recently made a strategic move to secure 12.31 acres of leasehold land at the SIPCOT Industrial Park in Shoolagiri, located in Hosur.
This acquisition serves as ...
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Rico Auto Industries, a Gurugram-based supplier of machined components and assemblies, specialising in both aluminium and ferrous materials for original equipment manufacturers, has recently made a strategic move to secure 12.31 acres of leasehold land at the SIPCOT Industrial Park in Shoolagiri, located in Hosur.
This acquisition serves as a step towards the company's future expansion plans, with a particular emphasis on catering to the needs of automotive vehicle manufacturers based in Southern India, the company informed investors on Monday.
The development comes even as Rico Auto Industries reported a 23.7% YoY drop in net profit to Rs 39 crore in FY24 as against Rs 51 crore reported in FY23. On similar lines, the company's revenue declined by 6.3% YoY to Rs 2,174 crore, in comparison to Rs 2,322 crore in FY23. About 79% of the company's business comes from the domestic market, while the rest from exports.
The management attributed the decline in revenue to the early End of Program (EOP) for export customers GKN and PSA. However, the replacement program for GKN is nominated with SOP (Start of production) in FY25. Secondly, there was a decline in the volume of Renault Nissan programs. Furthermore, the management added that there was a delay in SOP of new programs at the customer end.
However, we have partially been able to bridge the impact by increasing our share of business with Maruti Suzuki and Toyota" the management explained, adding that they expect revenue growth of 15% in FY25.