PPAP Automotive Q2 net up 25.5% to Rs 11.6 cr

Auto component maker PPAP Automotive Wednesday reported a 25.5 per cent year-on-year rise in net profit to Rs 11.6 crore in September quarter.

The company had posted a net profit of Rs 9.20 crore in the same period last year.

Sales from operations rose 21.7 per cent to Rs 118.6 crore in the reporting quarter, compared with Rs 97.5 crore in the year-ago period, the company said in a release.

"Despite the current global turbulence, rise in the petroleum prices, adverse exchange rates and a non-buoyant market, we have been able to improve our revenues and sustain our overall performance," said Ajay Kumar Jain, chairman and managing director, PPAP Automotive.

The company continues to widen its customer base and enhance its product offerings with advanced engineering capabilities, he added.

The passenger vehicle (PV) segment accounted for 96 per cent in the company's overall sales, the company said.

Its automotive sealing products were used in 70 per cent of total PVs produced at 10.79 lakh in the country during the quarter, it added.

Maruti Suzuki including Suzuki Motors Gujarat continue to remain the company's top customer, accounting for 46 per cent of the parts sales, followed by Honda, which contributed 34 per cent to the company's topline during the quarter, the release said.

PPAP Automotive is currently developing parts for 23 new models that are expected to start production within the next two years, it said, adding these parts are being developed for the company's existing customers as well as for new customers like Hyundai and MG Motors.

During the quarter, 21 per cent of the part sales came from from new vehicle launches, it added.

The company's stocks closed 5.12 per cent higher at Rs 387.95 apiece on the BSE, against 0.84 per cent decline in the benchmark.