Automotive Axles (505010) Q4 24/25 earnings summary

Executive summary

• Ended the year on a high note despite a soft domestic and export market and unfavorable product mix.

• Focused on product portfolio expansion, including MS185 and MS04 axles, and cost optimization initiatives.

• Entered a technical and service agreement with MHVSIL, now selling directly to OEMs with MHVSIL providing market intelligence and design support.

• Audited financial results for the quarter and year ended March 31, 2025, were approved and present a true and fair view as per auditor's unmodified opinion.

• Board recommended a final dividend of Rs. 30.50 per share (305%) for FY 2024-25, subject to shareholder approval.

Financial highlights

• Q4 total income was INR 568 crores, up from INR 536 crores in the previous quarter but down from INR 576 crores year-over-year.

• FY25 revenue was Rs. 22,291.74 million, with net profit of Rs. 1,555.35 million and EPS of Rs. 102.92.

• EBITDA for Q4 was INR 12.7 crores, with a margin of 12.7%, up from 12% in the previous quarter and 12.1% year-over-year.

• FY25 EBITDA margin was 11.9%, slightly higher than 11.8% last year despite lower revenue.

• Generated INR 72 crores in additional operating cash; balance sheet remains debt-free.

Outlook and guidance

• Expecting top-line growth in high single digits and profit increase in FY26, driven by direct OEM sales and new products.

• Market for M&HCV expected to remain soft in FY26, with production around 400,000 units, a 3% growth.

• EBITDA improvement in FY26 will be marginal due to soft market conditions; significant growth expected when export markets recover in FY27-FY28.

• Board is finalizing direct agreements with OEMs for future sales, indicating a shift in business model.