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:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.