ASK Automotive Ltd reported strong financial results for the third quarter of FY25, with consolidated total income reaching INR 919 crore, marking a 21% year-on-year increase. The company also delivered its highest-ever EBITDA margin, reaching 12.5%, an improvement of 180 basis points compared to the same period last year. However, despite domestic growth, the company saw a decline in export revenue, raising concerns about its global market position.
For Q3 FY25, ASK Automotive’s EBITDA stood at INR 115 crore, reflecting a 41% increase from the previous year, while net profit (PAT) reached INR 66 crore, growing by 32%. The company's earnings per share (EPS) increased to INR 3.3 from INR 2.5 in the same quarter last year. The nine-month performance also showed strong growth, with revenue rising by 24% to INR 2,760 crore and EBITDA increasing by 50% year-on-year. PAT for the period stood at INR 190 crore, representing a 51% rise. The company attributes its financial performance to increased economies of scale, improved production capacity utilisation at its Karoli facility, and a strong focus on cost optimisation.
Segment-wise, all three of ASK Automotive’s business verticals recorded growth. The Advanced Braking Systems segment grew by 14%, Aluminium Light Weighting Precision Solutions saw a 25% increase, and Safety Control Cables recorded a 10% rise. However, export revenue declined to INR 34 crore in Q3 FY25 from INR 45 crore in the same period last year, indicating a potential challenge in global markets.
The company remains optimistic about the future, expecting the growth momentum in the two-wheeler sector to continue for the rest of FY25. ASK Automotive also announced the commencement of commercial production at its 18th manufacturing facility in Karnataka, which began operations on 14 January 2025. Additionally, a solar power plant with a capacity of 9.9 MWp in Sirsa, Haryana, started trial production on 27 January 2025. The company’s financial position has been further strengthened with a credit rating upgrade from CRISIL, moving from AA- to AA.
Also Read