"This is the highest ever absolute revenue and EBITDA earned by us in any quarter in past. Also, we continue to outperform the two-wheeler industry vehicle production growth in both Q2 FY25 and H1 FY25," he added. ASK Automotive, an auto component maker, reported a 63% rise in consolidated net profit to INR 67 crore for the July-September quarter of FY 2024-25, compared to INR 41 crore in the same period last year. The company's total income for the quarter increased by 22.2% to INR 976 crore from INR 798 crore in the corresponding quarter of FY 2023-24. ASK Automotive also posted an EBITDA of INR 119 crore, a 50.3% increase from INR 79 crore in Q2FY24.
ASK Automotive, known as the largest manufacturer of brake shoes and advanced braking systems for two-wheelers in the country, expressed satisfaction over its financial performance. The company claimed this quarter marked its highest ever revenue and EBITDA.
"We had a strong finish to the second quarter and first half of the year in both revenue and profitability. This is the fourth consecutive quarter of robust performance by us since listing of the company last year. During Q2 FY25, we delivered strong performance in business and recorded significant growth," said Kuldeep Singh Rathee, Chairman and Managing Director of ASK Automotive.
Rathee credited the company's focus on value-added businesses, improved production capacities, and cost efficiencies for the positive results.
"This is the highest ever absolute revenue and EBITDA earned by us in any quarter in past. Also, we continue to outperform the two-wheeler industry vehicle production growth in both Q2 FY25 and H1 FY25," he added.
The company aims to maintain or improve its EBITDA margins in the upcoming quarters, depending on the growth of the two-wheeler industry.
"Our aim is to sustain this level of EBITDA margins and improve gradually in the subsequent quarters depending upon the growth of the 2W Industry in H2 FY25. Our mega manufacturing facility at Karoli is ramping up fast. The increased economies of scale and operational efficiencies are benefitting us in delivering better results," Rathee stated.
ASK Automotive has started generating positive EBITDA margins from its Karoli plant. Additionally, construction of a new plant in Bengaluru is on track.
"As we go forward, we are hopeful of maintaining the trend of outperforming the industry growth in the subsequent quarters of FY25. We anticipate the growth momentum in the two-wheeler sector to continue for the remaining part of the year with prevailing positive market sentiments on arrival of the upcoming festive season," he said.
ASK Automotive's shares saw a 1.75% rise, closing at INR 421.40 apiece on the Bombay Stock Exchange on Tuesday.
