The financial results for the fourth quarter and full year ending on March 31, 2024, have been recently released by ASK Automotive Limited, and the figures portray a positive outlook. ASK Automotive reported a consolidated total income of INR 78,586 lakh for the fourth quarter of FY24, signifying a 38% increase year-on-year (YoY). The total consolidated income for the full fiscal year amounted to INR 300,495 lakh, reflecting a 17% YoY growth.
In terms of the company’s earnings before interest, tax, depreciation, and amortization (EBITDA), the figures stood at INR 8,567 lakh for Q4 FY24, marking a 71% YoY growth, while the full year’s EBITDA reached INR 31,102 lakh, showing a 26% YoY increase. ASK Automotive achieved a double-digit EBITDA margin of 10.9% in Q4 FY24 and improved its full-year margin to 10.4% from 9.6% in the previous year.
The net profit (PAT) for Q4 FY24 amounted to INR 4,776 lakh, depicting a 112% YoY increase, with the full-year PAT reaching INR 17,377 lakh, showing a 41% YoY growth. This remarkable growth includes a one-time deferred tax gain of INR 351 lakh recognised in the wholly-owned subsidiary ASK Automobiles Private Limited in Q4 FY24. The company’s earnings per share (EPS) also increased to INR 8.8 in FY24, up by 43% from the previous year.
The Board of Directors has proposed a final dividend of 50%, equivalent to INR 1 per equity share of face value INR 2 each.
In terms of business segments, the Advanced Braking System business grew by 23% YoY in Q4 FY24 and 7% in FY24. The Aluminium Light Weighting Precision Solutions segment witnessed revenue growth of 73% in Q4 FY24 and 29% in FY24, while the Safety Control Cable segment recorded revenue growth of 32% in Q4 FY24 and 36% in FY24. The electric vehicle (EV) segment also experienced significant growth, with revenue of INR 3,315 lakh in Q4 FY24, marking a 91% YoY increase, and INR 12,044 lakh for the full year, up by 133% YoY. Furthermore, the export business delivered revenue of INR 14,664 lakh in FY24, representing a 58% YoY increase.
Commenting on the results, Kuldip Singh Rathee, Chairman and Managing Director, stated, ‘Our robust performance across all business segments and the significant revenue growth with double-digit EBITDA margins reflect our continued focus on expanding value-added businesses and cost efficiencies. We have achieved remarkable success in both domestic and export markets, driven by strong demand and favourable economic conditions.’
Mr. Rathee highlighted ASK Automotive’s strategic initiatives, including a partnership with LIOHO Machine Work Ltd, Taiwan, for high-pressure die-casted two-wheeler alloy wheels, and a joint venture with AISIN Group for marketing auto components in the independent aftermarket for passenger cars. The company invested approximately INR 38,000 lakh in a new manufacturing facility in Karoli, Rajasthan, which is expected to generate cash profits from Q1 FY25. Another INR 20,000 lakh will be invested in setting up a new facility in Bengaluru, Karnataka, operational by Q4 FY25. Additionally, ASK Automotive is establishing a 9.9MWp solar power plant in Sirsa, Haryana, with an investment of INR 4,800 lakh, to be commissioned by June 2024.
The future prospects for ASK Automotive seem promising as they continue to expand their presence both domestically and internationally, with a focus on innovation, strategic partnerships, and sustainable investments.