Automotive Axles Q2 Review- Strong Financials; Robust Long-Term Potential In The MHCV Segment: Axis Securities

Axis Securities Report

Automotive Axles Ltd. reported weaker-than-expected revenue and Ebitda compared to our estimates, while profit after tax was largely in line. Revenue declined by 15% YoY but increased by 5% QoQ, missing our estimates by 6%. The YoY decline was primarily due to a ~13% decrease in production volumes of medium and heavy commercial vehicle trucks, while the MHCV Bus segment saw a ~4% YoY volume growth (where Autoaxle has minimal product presence) during the quarter.

Ebitda came in at Rs 51 crore, down 23% YoY but up 5% QoQ, missing estimates by 4%, primarily due to negative operating leverage. PAT was reported at Rs 36 crore, a decline of 20% YoY but an increase of 6% QoQ, missing estimates by a marginal 2%, largely following the Ebitda performance.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.