Atul Auto: Q4FY14 Result Analysis

Atul Auto, today announced it fourth quarter result for the fiscal year 2014. The result shows that the company has posted a mixed set of numbers during the last quarter of FY14. The topline and the bottomline of the company has increased by 17% and 12% respectively, while the margins have remained under pressure during Q4FY14 as compared to the same quarter of previous year.

The total revenue of the company stood at Rs 112.6 crore in Q4FY14 as against Rs 96.08 crore during Q4FY13. On the volume front, Atul Auto sold 9649 vehicles during Q4FY14 as against 8448 vehicles during Q4FY13. The increase in sales volume helped the company to post such a growth in topline. The per unit realisation has however increased by 2.6% during the last quarter of FY14 as compared to the same quarter of previous year.

The EBITDA of the company during this quarter stood at Rs 11.79 crore, reporting a jump of around 3% on yearly basis for the quarter ended 31 March, 2014. The net profit during the last quarter of FY14 stood at Rs 8.45 crore, a rise of almost 12% as compared to the corresponding quarter of previous year.

On margin front, the EBITDA margin during Q4FY14 stood at 10.47%, down by 146 basis points as compared to the same quarter of previous year. The plunge in EBITDA margin can be attributed to the increase in employees benefit expense (up by 29% on YoY basis) and other expenses (up by 58% on YoY basis) during Q4FY14. Whereas the net profit margin has also reduced by 35 basis points during the quarter ended 31 March, 2014 as compared to the same quarter of previous year.

On sequential basis, the company's performance during the March quarter was weak as compared to December quarter of fiscal year 2014. The topline and the bottomline during Q4FY14 has plunged by 8.5% and 12.3% respectively on Q-o-Q basis. The EBITDA margin has reduced by 165 basis points to 10.47% during Q4FY14 as compared to Q3FY14.

The company has recommended a dividend of Rs 3.5 per share taking the total dividend for the fiscal year 2014 to Rs 7.5 per share with dividend yield of 2% at current market price of Rs 372 per share. On valuation front, the scrip of the company is trading at a price to earnings (P/E) of 13.72x. Today, on BSE the shares of the company opened at Rs 399 and is currently trading at Rs 372 per share, down by 3.7% from its previous close.