In an announcement that underscores its commitment to growth and operational expansion, ASK Automotive Limited, India’s leader in brake systems for two-wheelers, has reported a stellar financial performance for the third quarter and the first nine months of fiscal year 2024. Alongside its impressive financial results, the company revealed plans to establish a new manufacturing facility in Karnataka, marking a significant step in its strategic growth initiatives.
The third quarter of FY24 saw ASK Automotive achieve a 19% increase in revenue, alongside a 39% rise in EBITDA, and a remarkable 71% surge in PAT. These results reflect the company’s strong market position and its focus on innovation and customer satisfaction.
Financial highlights for the quarter ending December 31, 2023, showcased total income reaching Rs. 76,313 lacs, demonstrating a 19.4% year-on-year growth. Over the nine months of FY24, the company’s income grew by 11.2% to Rs. 2,21,909 lacs. This growth is attributed to the expansion in the Aluminium Light Weighting Precision Solutions and Safety Control Cable segments, as well as significant advancements in the EV channel.
The company’s strategic expansion was highlighted by the Board of Directors’ approval of a capex of approximately Rs. 21,900 lacs for a new manufacturing facility in Karnataka. Scheduled to be operational by Q4 FY25, this facility represents ASK Automotive’s commitment to enhancing its manufacturing capabilities and serving its customers in the southern part of India more effectively.
Mr. Kuldip Singh Rathee, Chairman and Managing Director, expressed enthusiasm about the new facility, stating, “This new manufacturing facility will be in addition to our existing 2 facilities in South. Also, this will be our 18th manufacturing facility in India (including 1 plant under Joint Venture Company).” He further commented on the quarterly results, noting the company’s robust performance and its strategic positioning for sustained growth.
The announcement also includes the company’s forward-looking initiatives in sustainability, with the development of a 10.56MWp solar plant in Sirsa, Haryana, aimed at optimizing energy costs.
About ASK Automotive Ltd.: ASK Automotive Ltd. is at the forefront of manufacturing brake shoes and advanced braking systems for two-wheelers in India, commanding a significant share of the OEM market. With a rich history of providing safety and precision solutions, the company continues to diversify its offerings across various segments, including EVs and exports. Its strategic collaborations and a joint venture with global industry leaders further solidify ASK Automotive’s position as a dynamic and innovative company poised for future growth.
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