ASK Automotive Ltd, a brake shoe manufacturer for two-wheelers, reported a net profit of ₹67 crore for the quarter ended September 30, 2024, marking a 63% increase from the same period last year. The company's consolidated revenue rose by 22% year-on-year to ₹976 crores.
Its Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 50% to ₹119 crores, with EBITDA margins improving to 12.2%, up by 230 basis points compared to the previous year.
For the first half of FY25, the company recorded revenues worth ₹1,841 crores, up 26% year-on-year, while net profit increased by 63% to ₹124 crores.
The company reported growth across all three business segments. The Advanced Braking System division saw an 18% year-on-year growth, while the Aluminium Light Weighting Precision Solutions grew 27% and Safety Control Cables segments grew 18% on year.
The company's new manufacturing facility at Karoli has begun contributing positively to EBITDA margins, the company said in a press release. Construction of a new plant in Bengaluru is progressing as planned, while a 9.9MWp Solar Power Plant in Sirsa, Haryana, for captive consumption is nearing completion.
Mr. Kuldip Singh Rathee, Chairman and Managing Director said this is the fourth consecutive quarter of robust performance by the company since its listing on the stock market last year. Rathee also expressed optimism about the two-wheeler sector's growth prospects and said, "We anticipate the growth momentum in two-wheeler sector to continue for the remaining part of the year with prevailing positive market sentiments on arrival of the upcoming festive season."
ASK Automotive maintains approximately 50% market share in the two-wheeler OEM brake shoe segment in India.