Munjal Showa reports 3.6% YoY decline in FY24 profit

Munjal Showa Ltd, which makes shock absorbers for two and four-wheelers, saw its net profit for the financial year 2024 decline 3.6 percent amid weakness in the operating performance. Profit for the fourth quarter fell significantly due to a high base as the company had recorded a one-time gain in the year-ago period.

The Gurugram-based auto component maker’s net profit for the year came in at Rs 30.8 crore, against Rs 31.9 crore in the financial year 2023. Revenue from operations decreased by 5.5 percent on year to Rs 1,172.7 crore. Total expense during the quarter was lower by around 4 percent on year at Rs 1,169.6 crore.

The company recorded a one-time loss of Rs 1.3 crore in the year on account of some voluntary retirement scheme costs, while the company had booked a one-time gain of Rs 3.5 crore.

For the quarter ended March 31, Munjal Showa clocked a net profit of Rs 7.8 crore, compared with Rs 21.2 crore in the year-ago quarter. The company had registered a one-time gain of Rs 10.9 crore in the comparable period, primarily on account of compensation from one of the customers concerning a component supply arrangement change in an earlier year.

Revenue from operations during the quarter declined 1.5 percent on year to Rs 294.3 crore, while total expenses rose 1.6 percent on year to Rs 290.6 crore.

The company’s board has also recommended a dividend of Rs 4.50 per share for the financial year 2024, subject to shareholder approval at the AGM.