Indian auto components manufacturer Ask Automotive Ltd on Tuesday, July 29, posted a 16% jump in its first quarter net profit at ₹66 crore compared to ₹56.8 crore in the same period a year ago. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 19.2% to ₹119.4 crore from ₹100.2 crore in Q1FY25.
In the June quarter, the company’s margins rose by 183 basis points year-on-year (YoY) to 13.8%.
The improvement in margins was mainly driven by benefits from increasing capacity utilisation at its Karoli facility, ramp-up of the new Bengaluru facility, and strategic reduction in low value-added wheel assembly business, the company said in a press release.
The company’s chairman and managing director Kuldip Singh Rathee said: “This is the seventh consecutive quarter of robust performance by us since listing of the company.”
“This reflects the result of our continued focus on expanding value-added businesses, improving utilisation of production capacities and bringing cost efficiencies. Our aim is to sustain current level of EBITDA margins and continue our efforts to improve gradually in the subsequent quarters depending upon the growth of the 2W (wheeler) industry,” he added.
In May, Rathee, in an interview with CNBC-TV18, had projected mid-teens revenue growth in FY26, and better operating margins in the current financial year, driven by higher capacity utilisation and a planned ramp-up in newer facilities.
Recently, the company’s board in June approved a joint venture with Germany’s TD Holding GmbH for the manufacturing, marketing, and sale of sunroof control cables and helix cables for passenger vehicles.
Shares of the company closed almost flat at ₹504 on the BSE today (July 29). The stock has gained as much as 16% in the last six months.
Click here for LIVE updates on Q1 results
(Edited by : Shoma Bhattacharjee)
