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Mirroring the downturn witnessed by the automotive component industry, Automotive Axles Ltd has witnessed about one-third erosion in its turnover in the quarter ended December 31, 2012, compared to the same quarter in the previous fiscal.
Its net profit was down more steeply — to just a third of the net profit it had recorded in the corresponding quarter in the earlier year.
According to the company’s results, the total income from operations was Rs 198.45 crore in Q1 of its current financial year (the company’s accounting year ends on September 30) compared with Rs 292.53 crore in the same period in the previous accounting year.
The net profit was down at Rs 6.08 crore (Rs 19.73 crore). The EPS declined sharply to Rs 4.02 from Rs 13.08.
Automotive Axles, which is a joint venture company between the Kalyani Group of Pune and Meritor of the US, had recorded a total income of Rs 940.64 crore and a net profit of Rs 45.01 crore for the year-ended September 30, 2012.
The stock, which had touched a low of Rs 331, has pulled back and is trading at Rs 350, a gain of Rs 11.40, on the NSE at 3.20 pm.
The Mysore based company produces rear drive axle assemblies and serves a string of major auto clients including Ashok Leyland, Tata Motors, Mahindra, Volvo India and SML Isuzu Ltd, VE Commercial Vehicles etc.
It also exports axle parts to USA, France, Italy, China, Brazil and Australia, according to the company Web site.
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