ASK Automotive Ltd Share Price – NSE  /  BSE

Auto Ancillaries, Small Cap

The Board of ASK Automotive at its meeting held on 24 April 2024 has granted their approval for entering into a joint venture with Aisin Asia (Thailand) Company, Thailand (AA-T) and AISIN Automotive Haryana, India, (AHL) (AA-T and AHL collectively referred to as AISIN Group Companies), for marketing and selling of the Independent After Market (IAM) parts for passenger cars, through a joint venture company, which will be incorporated after execution of Joint Venture Agreement.

The Company shall own 51% of the shareholding in the JV Co., and shall be infusing funds up to Rs. 10,71,00,000/- (in total), in one or more traches in the JV Co. out of which an amount of Rs. 51,00,000/-shall be infused at the time of incorporation of the JV Co. and accordingly the proposed JV Co. will be the subsidiary of the Company. Further, the remaining 49% shall be owned by AISIN Group Companies.

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Net profit of ASK Automotive rose 71.32% to Rs 49.94 crore in the quarter ended December 2023 as against Rs 29.15 crore during the previous quarter ended December 2022. Sales rose 19.57% to Rs 761.66 crore in the quarter ended December 2023 as against Rs 637.02 crore during the previous quarter ended December 2022.

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Ask Automotive will hold a meeting of the Board of Directors of the Company on 5 February 2024.

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Revenue from operations increased 6.45% YoY to Rs 793.86 crore in Q2 FY24. The growth in revenue is mainly driven by an increase of volume in aluminium light weighting precision solutions and safety control cable segment.

Profit before tax declined 14.6% to Rs 56.87 crore in Q2 FY24 as compared with Rs 66.59 crore posted in Q2 FY23.

EBITDA stood at Rs 79.02 crore in Q2 FY24, registering the de-growth of 9.02% as compared with Rs 86.86 crore in Q2 FY23. EBITDA margin was 9.90% in Q2 FY24 as against 11.59% in Q2 FY23.

The company said that the new manufacturing facility at karoli, Rajasthan commenced operations in July 2023 with kick start of mandatory product quality assurance and validation process with its OEMs. As a result, initial operational cost & finance cost incurred during this period has affected the margins. It is expected to normalize with scaling up of volumes starting Q4 FY24.

Kuldip Singh Rathee, chairman and managing director, said, “We continue to judiciously expand production capacities to address the foreseeable demand of our customers. In this direction, we have already invested approximately Rs 315 crore through ASK Automobiles (a wholly owned subsidiary of Ask Automotive) at new manufacturing facility at Karoli, Rajasthan. The plant has commenced operations from July 2023 and is undergoing initial phase of product quality assurance and validation process with OEMs which is expected to get concluded by early January 2024.

With conscious efforts towards renewable energy, we have made the decision to invest approximately Rs 50 crore in setting up 10.56 MWp solar power plant at Sirsa, Haryana for our captive consumption, making use of the recent policy announcement of the Haryana Government. This captive solar power plant is expected to be commissioned by end of July 2024.”

Shares of Ask Automotive debuted on the bourses on 15 November 2023. The scrip was listed at Rs 304.90, exhibiting a premium of 8.12% to the issue price of Rs 282.

Ask Automotive is the largest manufacturer of brake shoes and advanced braking systems for two wheelers in India. The company has diversified its operations and offers products inder advanced braking systems, aluminium light weighting precision solutions and safety constorl cables business segments.

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