PPAP Automotive Ltd Share Price – NSE /  BSE

Auto Ancillaries, Small Cap

The orders include a significant business for electric vehicles, valued at approximately Rs 50 crore. This development aligns with the firm’s forward-thinking strategy of aligning its portfolio with growth opportunities in the electric vehicle market. The order is to be executed over a period of 3 years to 5 years.

In an exchange filing, the company said, “A key highlight of these orders is the company’s success in expanding its footprint with KIA, marking a key milestone in PPAP’s efforts to expand its presence with global automotive giants. This new order win underscores PPAP Automotive's ongoing efforts to build long-term partnerships and its dedication to delivering excellence across both existing and new customers.”

Abhishek Jain, CEO & MD of PPAP Automotive, said, “These new orders from longstanding clients underscore PPAP Automotive's enduring relationships and unwavering commitment to excellence, reinforcing its reputation as a trusted leader in the automotive industry. Through our continued efforts, we have successfully made significant inroads with KIA.

We were successful in introducing new technology parts, which were highly appreciated by our customers and were immediately adopted for use in their forthcoming models. We remain committed towards achieving higher revenues coupled with better margins as these premium products bear fruit going ahead.”

PPAP Automotive is a leading manufacturer of automotive sealing systems and interior and exterior automotive parts in India. The company’s manufacturing facilities are located in all the major automotive passenger vehicle manufacturing hubs in North, West and South India.

The company’s standalone net profit surged 106.92% to Rs 5.56 crore in Q2 FY25 as compared with Rs 2.68 crore in Q2 FY24. Revenue from operations rose 0.59% YoY to Rs 1,413.06 crore during the quarter.

The company has a current market capitalization of Rs 346.60 crore.

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Revenue from operations rose 0.59% to Rs 1,413.06 crore during the quarter.

Profit before tax (PBT) soared 125.45% YoY to Rs 7.44 crore during the quarter.

Operating EBITDA stood at Rs 17.9 crore, registering the growth of 36.64% as compared with Rs 13.1 crore posted in same quarter last year. Operating EBITDA margin was 12.7% in Q2 FY25 as against 9.3% in Q2 FY24.

Maruti Suzuki and SMG is the largest customer of the company and it contributes 52% to the overall revenues. The company has commenced supplying parts to Maruti’s New Swift Dzire.

The company expects to conclude FY25 with revenues being in the range of approximately Rs 550 crore to Rs 575 crore and aim to maintain EBITDA margins between 11% to 12%.

Ajay Kumar Jain, chairman & MD of PPAP Automotive, said, “On a standalone basis, EBITDA registered a growth of 45.5% on a YoY basis to Rs 29.9 crore. EBITDA margins saw a sharp uptick, rising from 8.2% in H1FY24 to 11.5% in H1FY25, reflecting a robust growth of 230 basis points. This margin expansion can be attributed to the optimized utilization of existing assets, coupled with the softening of raw material prices. Furthermore, the company's profitability has grown by 6.5x to Rs 7.1 crore in H1FY25, compared to Rs 1.1 crore in the same period last year. On a consolidated basis, we are pleased to share that the company has also turned profitable, reporting a PAT of Rs 3.3 crore for H1FY25.”

Meanwhile, the company’s board has declared interim dividend of Re 1 per share. The record date for the payment of interim dividend is Wednesday, 20 November, 2024. The interim dividend shall be paid within 30 days of declaration.

PPAP Automotive is a leading manufacturer of Automotive Sealing Systems, Interior and Exterior Automotive parts in India. The company’s state of the art manufacturing facilities are located in all the major Automotive Passenger Vehicle manufacturing hubs in North, West and South India.

The company has a current market captilisation of Rs 312.72 crore.

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PPAP Automotive announced that the Board of Directors of the Company at its meeting held on 8 November 2024, inter alia, have recommended the interim dividend of Rs 1 per equity Share (i.e. 10%) , subject to the approval of the shareholders.

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Net profit of PPAP Automotive rose 429.63% to Rs 2.86 crore in the quarter ended September 2024 as against Rs 0.54 crore during the previous quarter ended September 2023. Sales declined 2.39% to Rs 144.86 crore in the quarter ended September 2024 as against Rs 148.40 crore during the previous quarter ended September 2023.

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