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Atul Auto: Volume Growth Boosts Net Profits post Demonetisation - Views on News from Equitymaster
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  • Sep 19, 2017 - Atul Auto: Volume Growth Boosts Net Profits post Demonetisation

Atul Auto: Volume Growth Boosts Net Profits post Demonetisation
Sep 19, 2017

Atul Auto has announced the first quarter results of financial year 2017-2018 (1QFY18). Topline grew by 24.6% YoY while bottom-line grew by 61.7% YoY during the quarter.

Performance summary:
  • Total income grew by 24.6% YoY during 1QFY18. Net sales grew by 24.3% YoY. On the other hand, other operating income increased by 81.8%YoY. Atul Auto sold 8,974 vehicles in 1QFY18 as against 7,606 vehicles in 1QFY17, a growth of 18%.This was despite a 8.9% de-growth for the overall three wheeler industry.
  • Domestic sales volumes increased by 12% for the year at 8,109 units whereas export volumes grew by 157% at 865 units YoY in Q1 FY18. The overall three wheeler domestic sales volumes for the industry declined by 25% whereas the export numbers for the industry grew by 25%.
  • Operating margins stood at 9.3% during the quarter, a Y-o-Y decline of 140 basis points. Operating profit grew by 46.2%. Atul Auto's gross margin for the quarter stood at 33.1%. EBITDA for the quarter increased to Rs. 121 million compared to Rs 82.7 million in 1QFY17.This is mainly due to increase in volumes across domestic and export markets.
  • Net profit increased by 61.7% YoY. This is mainly due to increase in sales volume post wearing off of demonetisation impact.

    Financial Snapshot
    (Rs m) 1QFY17 1QFY18 Change
    Net sales 1,037.2 1,289 24.3%
    Other operating income 5.5 10 81.8%
    Total Sales 1,042.7 1,298.8 24.6%
    Expenditure 960.0 1,178 22.7%
    Operating profit (EBDITA) 82.7 121 46.2%
    EBDITA margin (%) 7.9% 9.3%  
    Other income 3.1 5.2 67.7%
    Interest (net) 0.7 1.0 42.9%
    Depreciation 12.6 12.9 2.4%
    Profit before tax 72.5 112.2 54.8%
    Exceptional Items 0 0  
    Tax 24.2 34.1 40.9%
    Minority Interest 0 0  
    Profit after tax/(loss) 48.3 78.1 61.7%
    Net profit margin (%) 4.7% 6.1%  
    No. of shares (m) 22 22  
    Diluted earnings per share (Rs)   17.92  
    Price to earnings ratio (x)*   27.90  

    *based on trailing 12 months earnings

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