Share the post "Akar Auto Industries ‘s Latest Q1 Report: Profit Up by 33.91% Year-on-Year"
Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 5.76 % in the past year, substantial increase in net sales/revenue by 0.34 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 28.26 %. Marginal decrease of -39.18% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Akar Auto Industries Limited. Notable increase of 33.19 % in net profit Year to Year, Akar Auto Industries Limited’s profitability increased by 60.27 % in this quarter.
- EPS over the Year and quarter: EPS increased by 32.71 % Year to Year. EPS increased by 59.55 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 89.772 Cr | Rs. 94.623 Cr | Rs. 94.942 Cr | + 0.34 % | + 5.76 % |
| Expenses | Rs. 84.62 Cr | Rs. 87.92 Cr | Rs. 88.6 Cr | + 0.77 % | + 4.7 % |
| Operating Profit | Rs. 5.15 Cr | Rs. 6.7 Cr | Rs. 6.34 Cr | -5.37 % | + 23.11 % |
| OPM % | 5.74 % | 7.08 % | 6.68 % | -0.4 % | + 0.94 % |
| Other Income | Rs. 0.046 Cr | Rs. 0.097 Cr | Rs. 0.059 Cr | -39.18 % | + 28.26 % |
| Interest | Rs. 2.22 Cr | Rs. 3.71 Cr | Rs. 2.9 Cr | -21.83 % | + 30.63 % |
| Depreciation | Rs. 0.95 Cr | Rs. 1.12 Cr | Rs. 1.2 Cr | + 7.14 % | + 26.32 % |
| Profit before tax | Rs. 2.03 Cr | Rs. 1.97 Cr | Rs. 2.3 Cr | + 16.75 % | + 13.3 % |
| Tax % | 43.19 % | 51.44 % | 33.38 % | -18.06 % | -9.81 % |
| Net Profit | Rs. 1.15 Cr | Rs. 0.96 Cr | Rs. 1.54 Cr | + 60.42 % | + 33.91 % |
| EPS in Rs | Rs. 1.07 | Rs. 0.89 | Rs. 1.42 | + 59.55 % | + 32.71 % |
Today, we’re looking at Akar Auto Industries Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 5.76 %. However, it did see a marginal increase of 0.34 % from the previous quarter. Expenses ticked up slightly by 0.77 % quarter-on-quarter, aligning with the annual rise of 4.7 %. Operating profit, while up 23.11 % compared to last year, faced a quarter-on-quarter dip of -5.37 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 0.94 %, but a shrinkage of -0.4 % sequentially. Other income fell by -39.18 % compared to the last quarter, despite an annual growth of 28.26 %. Interest expenses dropped significantly by -21.83 % from the previous quarter, yet the year-over-year increase remains at a moderate 30.63 %. Depreciation costs climbed by 7.14 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 26.32 %. Profit before tax grew annually by 13.3 % but saw an increase from the preceding quarter by 16.75 %.
Tax expenses as a percentage of profits decreased slightly by -9.81 % compared to last year, with a more notable quarter-on-quarter decrease of -18.06 %. Net profit rose by 33.91 % year-on-year but experienced a 60.42 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 32.71 % but a quarterly rise of 59.55 %. In summary, Akar Auto Industries Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 89.772 Cr | Rs. 94.623 Cr | Rs. 94.942 Cr | + 0.34 % | + 5.76 % |
| Expenses | Rs. 84.62 Cr | Rs. 87.92 Cr | Rs. 88.6 Cr | + 0.77 % | + 4.7 % |
| Operating Profit | Rs. 5.15 Cr | Rs. 6.7 Cr | Rs. 6.34 Cr | -5.37 % | + 23.11 % |
| Net Profit | Rs. 1.15 Cr | Rs. 0.96 Cr | Rs. 1.54 Cr | + 60.42 % | + 33.91 % |
| EPS in Rs | Rs. 1.07 | Rs. 0.89 | Rs. 1.42 | + 59.55 % | + 32.71 % |
In reviewing Akar Auto Industries Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 5.76 % year-on-year growth, however, there was a minor increase of 0.34 % from the previous quarter. Expenses rose by 4.7 % compared to the previous year, with a 0.77 % increase quarter-on-quarter. Operating Profit surged by 23.11 % annually, and saw a -5.37 % decrease from the last quarter.
Net Profit showed yearly increase of 33.91 %, and experienced a 60.42 % increase from the previous quarter. Earnings Per Share (EPS) rose by 32.71 % annually, however rose by 59.55 % compared to the last quarter. In essence, while Akar Auto Industries Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
54
3-Year Profit
42
5-Year Profit
51
10-Year Profit
157
Current Price
3,820
Market Cap
The financial outlook for the company under BSE code 532406 reveals a significant five-year profit of 42 percents. This marks a notable increase to 54 percents over the last three years, indicating a strong upward trend in the company's financial health during this period. However, it's important to note that recent challenges have impacted the company's performance, leading to a trailing twelve-month loss of 42 percents. This sharp decline in profitability is particularly concerning, as the company has also reported no sales across any analyzed timeframe, suggesting a highly unconventional and perhaps risky operational approach. The company's stock prices mirror this financial volatility, with the stock trading at 112 percents over the past five years but experiencing a dramatic drop to 47 percents within the last year. Over a decade, the stock price was at 49 percents, reflecting long-term concerns regarding the company's stability and future outlook. Such performance poses questions about the sustainability of the business and whether it can rebound from these recent setbacks.
With a market capitalization of ₹3,820 crore, the company’s stock is currently trading at ₹157, having fluctuated within a range of ₹224 / 86.0 over the years. The stock's P/E ratio of 65.0 reflects a relatively high valuation compared to its earnings, which could suggest strong future growth expectations or heightened investor demand. The company’s book value is ₹8.09, representing the total value of its assets on a per-share basis, while the dividend yield of 0.12% offers a modest return to shareholders. ROCE, at 47.4%, highlights the company's efficient use of capital in generating profits, while ROE at 38.7% underscores its ability to generate returns for shareholders. The debt-to-equity ratio of 0.09 is very low, indicating conservative financial management and minimal reliance on borrowed funds. Despite this, the company shows a negative net cash flow of ₹0.86 crore, which could point to cash management challenges or recent heavy investments. The Piotroski score of 8.00 suggests moderate financial strength, while the Graham Number, pegged at ₹21.0, offers a rough estimate of the stock's intrinsic value. The Price-to-Book (P/B) ratio of 19.4 signals that the stock is trading at a premium, which might reflect investor confidence in the company's growth trajectory.
