Automotive Axles share drops over 5% as Q2 operating profit tanks 23% YoY

Automotive Axles share price: Automotive components manufacturer, Automotive Axles, shares dropped up to 5.27 per cent to hit an intraday low of Rs 1,746.40 per share on Thursday, October 31, 2024. 

 

The fall in Automotive Axles share price came on the back of weak set of September quarter of financial year 2025 (Q2FY25) results announced on Wednesday, October 30, 2024.

 

The company’s net profit fell 20 per cent year-on-year (Y-o-Y) to Rs 36 crore in the September quarter of FY25 (Q2FY25), from Rs 45 crore in the September quarter of FY24 (Q2FY24).

 

The revenue from operations, also known as topline, plummeted 15.4 per cent Y-o-Y to Rs 494.6 crore in Q2FY25, from Rs 584.4 crore in Q2FY24.

 

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda), or operating profit, tanked 23 per cent annually to Rs 51 crore in the September quarter of FY25, from Rs 66 crore in the September quarter of FY24.

 

Consequently, Ebitda margin, or operating profit margin (OPM), fell 100 basis points Y-o-Y to 10.3 per cent in the quarter under review, from 11.3 per cent in the same quarter previous fiscal year.

 

Automotive Axles, founded in 1981 as a joint venture between the Kalyani Group and Meritor Inc. of the USA, specialises in manufacturing and supplying automotive parts for major domestic and global truck and bus manufacturers. 

 

With a focus on various vehicle segments, including light commercial vehicles (LCV), medium commercial vehicles (MCV), heavy commercial vehicles (HCV), military, and off-highway vehicles, the company has established itself as a leader in the industry.

 

The company’s diverse product portfolio encompasses drive axles, front steer axles, off-highway axles, and braking solutions, with ongoing innovations in products like tandem axles and solo axles to meet evolving market demands.

 

As the largest independent axle manufacturer and the second-largest brake manufacturer in India, Automotive Axles boasts a robust customer base that includes prominent companies such as Ashok Leyland, Daimler India, Mahindra & Mahindra, Tata Motors, and Volvo Eicher. 

 

The market capitalisation of Automotive Axles is Rs 2,747.38 crore, according to BSE. The company falls under the BSE SmallCap category.

 

At 1:30 PM, Automotive Axles shares were trading 1.38 per cent lower at Rs 1,818.25 per share. In comparison, BSE Sensex was trading 0.65 per cent lower at Rs 79,423.73 levels.