Ask Automotive Records 17% YoY In FY24; Total Income Stands At Rs. 3,00,495

Brake shoe and Advance Braking Systems manufacturer for two-wheelers in India, ASK Automotive has shared its financial results for the fourth quarter and full year ended 31st March, 2024.

Consolidated Financial Highlights (Figures in ₹Lacs):

Key Financial Highlights:

• Strong performance delivered in Q4 FY24 and recorded Consolidated Total Income of Rs. 78,586 lakh with +38 per cent YoY growth. Total Consolidated Income for FY24 stands at Rs. 300,495 lakh and has grown by +17 per cent YoY.
• All the three product segments performed well on delivering revenue growth in FY24. Sustained market leadership position in the Advanced Braking System business with +23 per cent YoY growth in Q4 FY24 and +7 per cent growth in FY24. The Aluminium Light Weighting Precision Solutions revenue grew by +73 per cent in Q4 FY24 and +29 per cent in FY24. The Safety Control Cable also recorded revenue growth of +32 per cent in Q4 FY24 and +36 per cent in FY24.
• Strengthened position in the EV segment and recorded revenue of Rs. 3315 lakh in Q4 FY24 with +91 per cent YoY growth. FY24 revenue stands at Rs. 12,044 lacs with +133 per cent YoY growth.
• Expanded export business significantly and delivered revenue of Rs. 14,664 lakh in FY24 with +58 per cent YoY growth.
• EBITDA for Q4 FY24 stands at Rs. 8,567 lakh with +71 per cent YoY growth and FY24 at Rs. 31,102 lakh in FY24 with +26 per cent YoY growth.
• Achieved double-digit EBITDA margins at 10.9 per cent in Q4 FY24 and improved to 10.4 per cent in FY24 from 9.6 per cent in last year. Improvement in margins during FY24 are mainly driven by better economies of scale due to higher volume, improved product mix and continued focus on cost optimization.
• Achieved PAT of Rs. 4,776 lakh in Q4 FY24 with +112 per cent YoY growth. This includes one-time deferred tax gain of Rs. 351 lacs recognised in ASK Automobiles (wholly owned subsidiary of ASK Automotive) in Q4 FY24. FY24 PAT stands at Rs 17,377 lakh in FY24 with +41 per cent YoY growth.
• ASK share in Profit/Loss of ASK Fras le JV improved from losses of (Rs. 589 lakh) in FY23 to profit of Rs. 1,650 lakh in FY24. This includes one-time deferred tax gain of Rs. 683 lakh in FY24.
• EPS Increased to Rs. 8.8, up +43 per cent in FY24 against last year.
• The Board has recommended a dividend of 50 per cent i.e. Rs. 1.0 per equity share of face value of Rs. 2.0 each.

Key Initiatives of FY24

• The Company has ventured into a strategic partnership for new segment of Alloy Wheels for Two-Wheeler (2W) through High Pressure Die Casting (HPDC) with Technical Assistance from LIOHO Machine Work Ltd, Taiwan.
• The Company has inked a strategic Joint Venture agreement in April 2024 with AISIN Group to market and sell auto components in Independent Aftermarkets for Passenger Car Products.
• The Company has made an investment of approximately Rs. 38,000 lakh up to March 31, 2024 in setting up its new largest manufacturing facility in Karoli, Rajasthan to cater to upcoming demand of its customers. The Commercial operations of the plant has started and are ramping up fast. The plant is expected to generate cash profits from Q1 FY25.
• The Company also plans to invest approximately Rs. 20,000 lakh for setting up a new manufacturing facility in Bengaluru, Karnataka, to cater to the OEMs established in the Southern India. The plant is expected to be operational by Q4 FY25.
• With a clear focus on renewable energy, the Company is setting up a Mega Solar Power Plant of 9.9MWp in Sirsa, Haryana with investment of around Rs. 4,800 lakh for its captive consumption which is expected to commission by June 2024.
• Commenting on the results, Kuldip Singh Rathee, Chairman and Managing Director of ASK Automotive said in a press statement, “Led by the strong growth of 2W Segment driven by favourable macroeconomic conditions, we have achieved remarkable success in domestic market and witnessed strong growth in exports. We are observing healthy order book. We aim to venture into new product segments while growing all our existing business segments on the back of strong demand in urban sector and recovery in rural sector. We would expect to continue with our legacy of outperforming the industry in future as well.
• We will continue to focus on strengthening our position in EV segment with pipeline of new value-added products to serve EV OEMs in India. In line with our strategy, we are focusing on expanding our export business significantly with offerings of high-quality products to both Automotive and Non-automotive customers in US and Europe market.
• We are also in the process of setting up our 18th manufacturing facility in Karnataka to fulfil demand of southern customers. We are committed to keep contributing towards the value creation for our Stakeholders and Investors. In this direction, we are glad that the Board has recommended a dividend of 50 per cent i.e. Rs. 1.0 per equity share of face value of Rs. 2.0 each."