Fiem Ind surges 20% on emerging sole supplier to Ola for few products

The company said that it is the sole supplier of head lamps, tail lamps, indicators, rear fender assemblies and mirrors for Ola Electric's newly launched scooters S1 and S1 Pro

Shares of Fiem Industries hit a 52-week high of Rs 951.80 as they rallied 20 per cent on the BSE in intra-day trade on Tuesday after the company said it is the sole supplier of headlamps, tail lamps, indicators, rear fender assemblies and mirrors for Ola Electric's newly launched scooters S1 and S1 Pro.

In addition to other existing Electric Vehicle (EV) clients, this is a landmark client addition for us and we are excited and fully prepared to cater all demands of Ola Electric in the future, the company said in an exchange filing. The company further added that it sees a huge potential in the Indian 2-Wheeler EV segment and going forward, it is hopeful of capturing greater market share in this segment.

Fiem Industries is engaged in the business of manufacturing and supply of auto components comprising of automotive lighting and signalling equipments, rear view mirrors, plastic molded parts and sheet metal components for motorized vehicles, and LED luminaries for indoor and outdoor applications and integraled passenger information systems with LED Display etc.

Meanwhile, the company reported a 57 per cent quarter-on-quarter (QoQ) decline in its consolidated net profit at Rs 11.32 crore for the quarter ended June 2021 (Q1FY22). The company had posted profit of Rs 26.58 crore in the March 2021 (Q4FY21) quarter and consolidated loss of Rs 23.82 crore in the year-ago quarter (Q1FY21).

The company’s consolidated net sales during the quarter under review declined by 34 per cent QoQ to Rs 272.25 from Rs 414.97 crore in the previous quarter. During the quarter, the company's operations were adversely impacted by the outbreak of the Covid-19 pandemic and consequent regional lockdowns announced by the various state governments, Fiem Industries said in a statement.

At 09:48 am, the stock was traded 14 per cent higher at Rs 905 on the BSE, as compared to a 0.01 per cent decline in the S&P BSE Sensex. A combined around 350,000 equity shares had changed hands on the counter on the NSE and BSE.