A part of the Steel Strips group, the company manufactures the steel rims which come around the wheels of automobiles. It supplies to Maruti, Mahindra & Mahindra and Bajaj Tempo.
The company has posted its results for the year ended 31st March 2008. In real terms, the company has shown an improvement but a look at the margins indicates that there has been some pressure. YoY, the net sales rose 31% at Rs.259.64 crore. The company’s operating expense rose 32% and though the EBIDTA rose 24% at Rs.49.42 crore, its OPM was down from 20.12% to 19.03%. PBT was up 17% at Rs.23.36 crore and PAT rose 22% at Rs.12.56 crore. NPM was also down marginally at 6.57% from 7.07% last fiscal.
The company’s future growth path looks good. It is setting up a new plant for manufacturing wheels rims for passenger cars and multi utility vehicles near Chennai in Tamil Nadu, with an initial capacity of 3 millions wheel rims p.a. This is likely to start trial production in 1st quarter of year 2008-09.
The company’s focus is expected to be exports and it has already started going ahead in that direction. In April 2008, Renault of France, one of the largest manufacturer of cars in Europe and the leading manufacturer of light commercial vehicles, has given an export order to the company for supply of approx 1 million steel wheel rims over 5 years, valued at approx Rs.110 crore. This export order is for one of their new vehicles to be produced in Europe.
Prior to this, PSA Peugeot Citroen, Europe's number two automotive manufacturer had given another export order for the supply of over 70,000 steel wheel rims for their existing passenger car model, valued over Rs 4.50 crore p.a This is the second order from them, they had already placed another order for 13,75,000 steel wheel rims, valued at over Rs 75 crore.
The company expects its exports to grow over 200% in FY 08-09 and hopes to cross export of 4,25,000 wheels rims in the current fiscal. The rising cost of steel is sure to hike up its operating costs this fiscal too but surely, it will be able to pass it on to the consumers.
Quoted at Rs.170, stay invested.
The company has posted its results for the year ended 31st March 2008. In real terms, the company has shown an improvement but a look at the margins indicates that there has been some pressure. YoY, the net sales rose 31% at Rs.259.64 crore. The company’s operating expense rose 32% and though the EBIDTA rose 24% at Rs.49.42 crore, its OPM was down from 20.12% to 19.03%. PBT was up 17% at Rs.23.36 crore and PAT rose 22% at Rs.12.56 crore. NPM was also down marginally at 6.57% from 7.07% last fiscal.
The company’s future growth path looks good. It is setting up a new plant for manufacturing wheels rims for passenger cars and multi utility vehicles near Chennai in Tamil Nadu, with an initial capacity of 3 millions wheel rims p.a. This is likely to start trial production in 1st quarter of year 2008-09.
The company’s focus is expected to be exports and it has already started going ahead in that direction. In April 2008, Renault of France, one of the largest manufacturer of cars in Europe and the leading manufacturer of light commercial vehicles, has given an export order to the company for supply of approx 1 million steel wheel rims over 5 years, valued at approx Rs.110 crore. This export order is for one of their new vehicles to be produced in Europe.
Prior to this, PSA Peugeot Citroen, Europe's number two automotive manufacturer had given another export order for the supply of over 70,000 steel wheel rims for their existing passenger car model, valued over Rs 4.50 crore p.a This is the second order from them, they had already placed another order for 13,75,000 steel wheel rims, valued at over Rs 75 crore.
The company expects its exports to grow over 200% in FY 08-09 and hopes to cross export of 4,25,000 wheels rims in the current fiscal. The rising cost of steel is sure to hike up its operating costs this fiscal too but surely, it will be able to pass it on to the consumers.
Quoted at Rs.170, stay invested.
Source: Sptulsian.com
