ASK Automotive Limited has reported impressive financial results for the first quarter of FY2025, showcasing substantial growth across all key metrics. The company achieved a 31% year-on-year (YoY) increase in consolidated total income, amounting to INR 865 crore. This notable performance reflects the company's ongoing commitment to excellence and innovation within the automotive industry.
The company’s three primary product segments have all delivered strong revenue growth. The Advanced Braking System business saw a 26% YoY increase, while the Aluminium Lightweight Precision Solutions and Safety Control Cables segments recorded growth of 39% and 33% respectively. This diverse growth underscores ASK Automotive's strong market presence and ability to adapt to industry demands.
In addition to revenue growth, ASK Automotive reported a significant rise in EBITDA, which surged by 59% YoY to INR 103 crore. The EBITDA margin improved to 11.9%, marking an increase of 210 basis points (bps) from Q1 FY2024 and 100 bps from Q4 FY2024. This margin improvement is attributed to better economies of scale, ramped-up production at the new Karoli manufacturing facility, and focused cost optimisation initiatives.
The company also reported a robust increase in Profit After Tax (PAT), which grew by 63% YoY to INR 57 crore. Earnings per Share (EPS) rose to INR 2.88, a 63% increase from INR 1.77 in Q1 FY2024. This financial performance highlights ASK Automotive's strong operational efficiency and strategic focus.
The company’s credit rating by CRISIL has been reaffirmed as A1+ for short-term and AA- for long-term, with an outlook revised to Positive from Stable. This rating reflects the strong business fundamentals and future growth prospects of ASK Automotive.
The two-wheeler segment, a key market for ASK Automotive, posted a 19.6% growth in vehicle production in Q1 FY2025, as reported by the Society of Indian Automobile Manufacturers (SIAM). With a positive outlook for the monsoon and the upcoming festive season, this segment is expected to continue its growth trajectory, further benefiting ASK Automotive.
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