ASK Automotive Ltd

The Board of ASK Automotive at its meeting held on 24 April 2024 has granted their approval for entering into a joint venture with Aisin Asia (Thailand) Company, Thailand (AA-T) and AISIN Automotive Haryana, India, (AHL) (AA-T and AHL collectively referred to as AISIN Group Companies), for marketing and selling of the Independent After Market (IAM) parts for passenger cars, through a joint venture company, which will be incorporated after execution of Joint Venture Agreement.

The Company shall own 51% of the shareholding in the JV Co., and shall be infusing funds up to Rs. 10,71,00,000/- (in total), in one or more traches in the JV Co. out of which an amount of Rs. 51,00,000/- shall be infused at the time of incorporation of the JV Co. and accordingly the proposed JV Co. will be the subsidiary of the Company. Further, the remaining 49% shall be owned by AISIN Group Companies.

Powered by Capital Market - Live News

Net profit of ASK Automotive rose 71.32% to Rs 49.94 crore in the quarter ended December 2023 as against Rs 29.15 crore during the previous quarter ended December 2022. Sales rose 19.57% to Rs 761.66 crore in the quarter ended December 2023 as against Rs 637.02 crore during the previous quarter ended December 2022.

Powered by Capital Market - Live News

Ask Automotive will hold a meeting of the Board of Directors of the Company on 5 February 2024.

Powered by Capital Market - Live News

Revenue from operations increased 6.45% YoY to Rs 793.86 crore in Q2 FY24. The growth in revenue is mainly driven by an increase of volume in aluminium light weighting precision solutions and safety control cable segment.

Profit before tax declined 14.6% to Rs 56.87 crore in Q2 FY24 as compared with Rs 66.59 crore posted in Q2 FY23.

EBITDA stood at Rs 79.02 crore in Q2 FY24, registering the de-growth of 9.02% as compared with Rs 86.86 crore in Q2 FY23. EBITDA margin was 9.90% in Q2 FY24 as against 11.59% in Q2 FY23.

The company said that the new manufacturing facility at karoli, Rajasthan commenced operations in July 2023 with kick start of mandatory product quality assurance and validation process with its OEMs. As a result, initial operational cost & finance cost incurred during this period has affected the margins. It is expected to normalize with scaling up of volumes starting Q4 FY24.

Kuldip Singh Rathee, chairman and managing director, said, “We continue to judiciously expand production capacities to address the foreseeable demand of our customers. In this direction, we have already invested approximately Rs 315 crore through ASK Automobiles (a wholly owned subsidiary of Ask Automotive) at new manufacturing facility at Karoli, Rajasthan. The plant has commenced operations from July 2023 and is undergoing initial phase of product quality assurance and validation process with OEMs which is expected to get concluded by early January 2024.

With conscious efforts towards renewable energy, we have made the decision to invest approximately Rs 50 crore in setting up 10.56 MWp solar power plant at Sirsa, Haryana for our captive consumption, making use of the recent policy announcement of the Haryana Government. This captive solar power plant is expected to be commissioned by end of July 2024.”

Shares of Ask Automotive debuted on the bourses on 15 November 2023. The scrip was listed at Rs 304.90, exhibiting a premium of 8.12% to the issue price of Rs 282.

Ask Automotive is the largest manufacturer of brake shoes and advanced braking systems for two wheelers in India. The company has diversified its operations and offers products inder advanced braking systems, aluminium light weighting precision solutions and safety constorl cables business segments.

Powered by Capital Market - Live News

Revenue from operations increased 6.45% YoY to Rs 793.86 crore in Q2 FY24. The growth in revenue is mainly driven by an increase of volume in aluminium light weighting precision solutions and safety control cable segment.

Profit before tax declined 14.6% to Rs 56.87 crore in Q2 FY24 as compared with Rs 66.59 crore posted in Q2 FY23.

EBITDA stood at Rs 79.02 crore in Q2 FY24, registering the de-growth of 9.02% as compared with Rs 86.86 crore in Q2 FY23. EBITDA margin was 9.90% in Q2 FY24 as against 11.59% in Q2 FY23.

The company said that the new manufacturing facility at karoli, Rajasthan commenced operations in July 2023 with kick start of mandatory product quality assurance and validation process with its OEMs. As a result, initial operational cost & finance cost incurred during this period has affected the margins. It is expected to normalize with scaling up of volumes starting Q4 FY24.

Kuldip Singh Rathee, chairman and managing director, said, “We continue to judiciously expand production capacities to address the foreseeable demand of our customers. In this direction, we have already invested approximately Rs 315 crore through ASK Automobiles (a wholly owned subsidiary of Ask Automotive) at new manufacturing facility at Karoli, Rajasthan. The plant has commenced operations from July 2023 and is undergoing initial phase of product quality assurance and validation process with OEMs which is expected to get concluded by early January 2024.

With conscious efforts towards renewable energy, we have made the decision to invest approximately Rs 50 crore in setting up 10.56 MWp solar power plant at Sirsa, Haryana for our captive consumption, making use of the recent policy announcement of the Haryana Government. This captive solar power plant is expected to be commissioned by end of July 2024.”

Shares of Ask Automotive debuted on the bourses on 15 November 2023. The scrip was listed at Rs 304.90, exhibiting a premium of 8.12% to the issue price of Rs 282.

Ask Automotive is the largest manufacturer of brake shoes and advanced braking systems for two wheelers in India. The company has diversified its operations and offers products inder advanced braking systems, aluminium light weighting precision solutions and safety constorl cables business segments.

The scrip rose 0.32% to settle at Rs 295.75 on Friday, 1 December 2023.

Powered by Capital Market - Live News

Net profit of ASK Automotive declined 15.34% to Rs 41.24 crore in the quarter ended September 2023 as against Rs 48.71 crore during the previous quarter ended September 2022. Sales rose 6.45% to Rs 793.87 crore in the quarter ended September 2023 as against Rs 745.76 crore during the previous quarter ended September 2022.

Powered by Capital Market - Live News

Ask Automotive will hold a meeting of the Board of Directors of the Company on 1 December 2023.

Powered by Capital Market - Live News

The scrip was listed at Rs 304.90, exhibiting a premium of 8.12% to the issue price.

So far, the stock has hit a high of 311.75 and a low of 304.15. On the BSE, over 8.15 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of ASK Automotive was subscribed 51.14 times. The issue opened for bidding on 7 October 2023 and it closed on 9 November 2023. The price band of the IPO was fixed at Rs 268-282 per share.

The offer comprised only an offer for sale of 2,95,71,390 equity shares worth Rs 833.91 crore by existing shareholders- Kuldip Singh Rathee and Vijay Rathee.

The company will not directly receive any proceeds from the offer, and all the proceeds will be received by the selling shareholders, in proportion to the offered shares sold by them.

The promoters and promoter group held 100% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding for the same is expected to be around 85%.

ASK Automotive is largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers in India. Company had a market share of approximately 50% in Fiscal 2023 in terms of production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket (IAM), on a combined basis.

The product range of the company includes AB systems, aluminium lightweight precision (ALP), wheel assembly to 2W OEMs and safety control cables (SCC). The company operates in India as well as overseas.

The firm reported a net profit of Rs 34.83 crore and net sales of Rs 656.50 crore for the three months ended on 30 June 2023.

Powered by Capital Market - Live News

The benchmark indices traded with modest losses in afternoon trade. The Nifty hovered below the 19,450 mark. PSU bank and metal stocks were in demand while IT, consumer durables and healthcare shares declined.

At 12:28 IST, the barometer index, the S&P BSE Sensex, was down 317.22 points or 0.49% to 64,942.23. The Nifty 50 index lost 79.65 points or 0.41% to 19,445.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.11% while the S&P BSE Small-Cap index shed0.04%.

The market breadth was negative. On the BSE, 1,675 shares rose and 2,066 shares fell. A total of 150 shares were unchanged.

On the macro front, India's inflation rate for October will be unveiled on 13 November 2023. India's inflation based on wholesale price index (WPI) for October will be unveiled on 14 November 2023.

Gainers & Losers:

Coal India (up 4.76%), Eicher Motors (up 1.91%), NTPC (up 1.25%), Hindalco Industries (up 1.06%) and BPCL (up 0.85%) were major Nifty gainers.

SBI Life Insurance Company (down 1.95%), Apollo Hospitals Enterprise (down 1.40%), HDFC Life Insurance Company (down 1.28%), Bajaj Finance (down 1.24%) and Tech Mahindra (down 1.23%) were major Nifty losers.

Stocks in Spotlight:

Glenmark Pharmaceuticals dropped 4.70%. The company has posted a net loss of Rs 61.6 crore in Q2 FY24 as compared with a net profit of Rs 278.6 crore in Q2 FY23. Revenue rose by 6.3% YoY to Rs 3,207.4 crore during the period under review.

Fortis Healthcare rallied 3.15%. The company reported 15% decline in consolidated net profit to Rs 173.72 crore in Q2 FY24 as compared with Rs 204.37 crore in Q2 FY23. The company’s revenue from operations jumped 10.13% year on year (YoY) to Rs 1,769.95 crore in Q2 FY24.

Biocon slipped 3.58%. The global biopharmaceuticals company has reported a net profit of Rs 126 crore for Q2 FY24 as against a PAT of Rs 47 crore in Q2 FY23. Consolidated revenues for the second quarter grew by 52% year-on-year (YoY) to Rs 3,620 crore.

Hindustan Copper surged 7.90% after the company’s consolidated net profit zoomed to Rs 60.70 crore in Q2 FY24 as against Rs 25.87 crore posted in Q2 FY23. Revenue from operations stood at Rs 381.40 crore in the quarter ended 30 September 2023, registering a growth of 79.78% YoY.

Global markets:

Markets in Europe declined and Asian stocks traded mixed on Monday, as investors look to more economic data ahead of high-stakes talks between the U.S. and China. U.S. President Joe Biden and China’s President Xi Jinping are set this week for their first in-person meeting in about a year.

Japan’s wholesale inflation slowed sharply last month, in a sign that cost pressures were gradually cooling, according to data released by the Bank of Japan. The central bank’s corporate goods price index rose 0.8% in October from a year earlier.

Ratings agency Moody’s Investors Service on Friday downgraded its ratings outlook on the U.S. government to negative from stable, pointing to rising risks to the nation’s fiscal strength.

Powered by Capital Market - Live News