Axis Securities: Automotive Axles  Q1 Review - Cost Cuts  To Benefit; CV Cycle Recovery Holds Key
Automotive Axles Ltd.’s special axle plant- Mysuru (image: Company website)

Axis Securities: Automotive Axles Q1 Review - Cost Cuts To Benefit; CV Cycle Recovery Holds Key

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Axis Securities Report

Q1 FY21 was a washout quarter for Automotive Axles Ltd. It reported a loss of Rs 23 crore in Q1 FY21 on account of subdued performance of Automobile industry especially commercial vehicles (CV) as Automotive Axles derives all its revenues from the commercial vehicle segment.

The production was shut for April and May 2020 while a small amount of production was done in June 2020; the company reported a Sales revenues of Rs 38 crore and loss of Rs 14 crore at Ebitda level in Q1 FY21.

The sales volumes in CV segment appears have bottomed out as month on month improvement is seen in industry volumes.

Though the current truck fleet capacity utilization is low at approximately 50%, the demand is expected to pick up as sentiment improves (driven by opening up of economy, capex cycle recovery etc).

Click on the attachment to read the full report:

Axis Securities AutomotiveAxles Q1FY21 Result Update .pdf

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