Automotive Stampings & Assemblies Ltd (ASL) saw a significant rise in its sales during Q3 FY2022 to Rs 162 crore, an increase of nearly 45 percent as compared to Rs 112 crore Q3FY2021.
The company's net profit improved to Rs 0.39 crore during the comparable period as against loss of Rs 3.91 crore earlier, the company informed in a regulatory filing.
ASAL, which manufactures sheet metal components, welded assemblies and modules for passenger vehicles, commercial vehicles, and tractors offers a product range that includes Body-In-White (BIW) structural panels, skin panels, fuel tanks, rear twist beam, oil sumps & suspensions.
ASAL has two plants in Pune (Maharashtra) and Pantnagar (Uttarakhand) counts some of the main OEMs such as Tata Motors, General Motors, Fiat, Piaggio, Ashok Leyland amongst others as its customers. Tata Autocomp Systems (TACO) holds a 75 percent stake in ASAL.
However, even as ASL's stocks zoomed over 2,400 percent in the past over a year, the company's auditor, in its report drew attention to the fact that though the company earned profit of Rs 0.39 crore during Q3FY2022, it incurred loss of about Rs 6 crore during the first nine months of the current fiscal. ASL's total liabilities which stood at nearly Rs 96 crore until Q3FY2022, thus makes the company's net worth to be negative. However, the company's management insisted that it would be able to meet its liabilities on the basis of letter of financial support provided by the holding company, access to alternative sources of funding by the Group entities, implementation of various measures to improve operational efficiency and optimizing margins and plans to sell surplus properties to reduce borrowings and interest costs.