Company Disclosure

Financial Highlights (Unaudited Standalone)

Income Statement:

  • Total Income: ₹6,707.28 Lakhs in Q1 FY27, compared to ₹6,452.67 Lakhs in Q1 FY26 (4.0% YoY growth) and ₹5,924.24 Lakhs in Q4 FY26 (13.2% QoQ growth)
  • Profit Before Tax (PBT): ₹615.33 Lakhs, up 203.7% from ₹202.57 Lakhs in Q1 FY26 and marginally higher than ₹612.94 Lakhs in preceding quarter
  • Profit After Tax (PAT): ₹447.96 Lakhs, up 218.4% from ₹140.65 Lakhs in Q1 FY26

Profitability Metrics:

  • EBITDA Margin: 16.2%, representing 640 basis points expansion year-on-year
  • Return on Capital Employed (ROCE): Improved to 22%, crossing the company's 20% target for the first time
  • Earnings Per Share (EPS): Basic and Diluted EPS stood at ₹12.31 for the quarter

Management Commentary

Mr. Viraj Kalyani, Managing Director and CEO, attributed the strong performance to operational and financial discipline built over past several quarters. Key factors mentioned include new inventory policy, tighter cost controls, and focus on top strategic accounts. Management priorities for Q2 include improving Overall Equipment Effectiveness in the Forge Shop, accelerating collections, and converting strengthening order pipeline into revenue.

Operational & Strategic Highlights

Cost Reduction Initiatives:

  • Internal 'Vriddhi Council' has realized ₹19.1 Crores in savings to date
  • Annual target of ₹50 Crores in cost savings

Working Capital Optimization:

  • Cash Conversion Cycle improved to 148 days from 168 days in preceding quarter
  • Ongoing target to reduce further to 120 days
  • Trade receivables stand at ₹124.21 Crores
  • Management leveraging bill discounting frameworks and enforcing recovery policies within legal parameters
  • Strengthened credit control and collection monitoring with weekly ageing reviews

Capital Expenditure Discipline:

  • Commissioned second conrod production line for key customer program using existing infrastructure with zero additional capex
  • Ongoing wheel hub line expansion executed by redeploying existing machining assets
  • Reduced planned capital outlay from initial ₹10 Crores to approximately ₹2 Crores

Order Book & Business Development:

  • Secured key new orders from marquee global customers for engine and wheel hub components
  • New orders represent approximately ₹20 Crores in annual revenue potential
  • Management acknowledges recent reduction in driveline business segment
  • Actively tracking and developing prospective growth areas to diversify revenue base