Robust Financial Growth for ASK Automotive

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ASK Automotive Limited, India’s leading manufacturer of brake shoes and advanced braking systems for two-wheelers, has announced impressive financial results for the fiscal year 2023-24. The company reported significant growth in revenue, EBITDA, and profit after tax (PAT), highlighting its strong market position and strategic advancements.

Key Highlights:

  • Revenue Growth: ASK Automotive achieved a 17% year-over-year (YoY) increase in total consolidated income, reaching ₹300,495 lacs. The fourth quarter alone saw a 38% YoY growth with total income of ₹78,586 lacs.
  • EBITDA Increase: The company’s EBITDA grew by 26% YoY, totaling ₹31,102 lacs for the fiscal year. The fourth quarter EBITDA was ₹8,567 lacs, reflecting a 71% YoY increase.
  • PAT Surge: PAT for the fiscal year increased by 41% YoY to ₹17,377 lacs. The fourth quarter PAT was ₹4,776 lacs, marking a 112% YoY growth.
  • Dividend Declaration: A final dividend of 50%, or ₹1 per equity share, was declared.

Financial Performance Breakdown:

  • Product Segments:
    • Advanced Braking Systems: Recorded a 23% YoY growth in Q4 and 7% growth for the fiscal year.
    • Aluminium Light Weighting Precision Solutions: Achieved a 73% YoY growth in Q4 and 29% for the fiscal year.
    • Safety Control Cable: Saw a 32% YoY growth in Q4 and 36% for the fiscal year.
  • EV Segment: Strengthened its position with a 91% YoY growth in Q4 and 133% for the fiscal year, recording revenues of ₹3,315 lacs and ₹12,044 lacs respectively.
  • Export Business: Expanded significantly with a 58% YoY growth, achieving ₹14,664 lacs in revenue.

Operational and Strategic Initiatives:

  • Partnerships: ASK Automotive entered into a strategic partnership for two-wheeler alloy wheels with LIOHO Machine Work Ltd, Taiwan, and signed a joint venture with AISIN Group to market and sell auto components for passenger cars.
  • Manufacturing Expansion: The company invested ₹38,000 lacs in a new manufacturing facility in Karoli, Rajasthan, which began commercial operations and is expected to generate profits from Q1 FY25. Additionally, a new facility is planned for Bengaluru, Karnataka, with an investment of ₹20,000 lacs, expected to be operational by Q4 FY25.
  • Renewable Energy: A Mega Solar Power Plant of 9.9MWp is being set up in Sirsa, Haryana, with an investment of ₹4,800 lacs, expected to be commissioned by June 2024.

Management Commentary:

Mr. Kuldip Singh Rathee, Chairman and Managing Director, highlighted the company’s robust performance across all business segments and significant growth in both domestic and export markets. He emphasized the strategic focus on expanding value-added businesses, enhancing production capacities, and fostering new partnerships to drive future growth.

Company Overview:

ASK Automotive Limited is India’s largest manufacturer of brake shoes and advanced braking systems for two-wheelers, holding a ~50% market share in OEMs. The company offers diverse products across advanced braking systems, aluminium light weighting solutions, and safety control cables, with a strong focus on the EV and export markets. ASK Automotive is listed on NSE (ASKAUTOLTD) and BSE (544022).

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