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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
176
Current Price
4,272
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 113 percents over the past five years but experiencing a dramatic drop to 63 percents within the last year. Over a decade, the stock price was at 55 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.
The company currently holds a market cap of ₹4,272 crore, with its stock trading at ₹176. Historically, the stock has fluctuated between ₹224 / 86.0, reflecting its performance in response to market dynamics and various economic factors. The company's Price-to-Earnings (P/E) ratio stands at 72.7, indicating that the stock is perceived as highly valued by the market, possibly driven by expectations of future earnings growth. The book value per share is ₹8.09, which offers insight into the company's intrinsic worth, while its dividend yield of 0.11% provides a steady return for long-term investors. Return on Capital Employed (ROCE) is 47.4%, showcasing the company’s ability to generate profits from its capital investments. Return on Equity (ROE) is 38.7%, highlighting how efficiently the company uses shareholder funds to generate profits. The debt-to-equity ratio is very low at 0.09, which is a positive indicator of financial stability. However, the company’s net cash flow of ₹0.86 crore raises concerns about its liquidity position. The Piotroski score of 8.00 reflects the company’s overall financial health, while the Graham Number of ₹21.0 suggests the stock's intrinsic value. Despite these factors, the Price-to-Book (P/B) ratio of 21.7 indicates that the stock is trading at a premium to its book value, which might imply market optimism about the company's future growth prospects.
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