Automotive Axles (505010) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue was INR 498 crore, with a 7.4% sequential decline due to lower MHCV market volumes.

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

• Operating margin improved by 0.5% sequentially, with EBITDA margin at 13.2% versus 13.5% year-over-year.

• Cost and margin controls remain effective, with ongoing initiatives to enhance shareholder value.

• 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.

• EBITDA margin: 13.2% for Q1 FY25, slightly down from 13.5% year-over-year.

• 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.

Outlook and guidance

• MHCV market expected to be 5% lower in FY25 versus last year, with Q3 and Q4 anticipated to perform better.

• Market may remain flat in FY26, but new product launches aim to offset product mix vulnerabilities.

• Next industry peak expected in 3-4 years, driven by higher HP and tonnage vehicles.

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