JBM Auto: Q1FY15 Result Analysis

JBM Auto announced its June 2014 quarter results today and the figures have been in-line with the street estimates. On consolidated basis the topline for June 2014 stood at Rs 388.94 crore against Rs 258.76 crore posted in June 2013. The performance at the topline front was also good on sequential basis. With improved realisation, the company has managed to put in a strong performance at PBIT level. PBIT for the quarter ended June 2014 stood at Rs 42.24 crore against Rs 11.01 crore in June 2013. On the sequential basis also the performance has been very good where it’s PBIT stood at Rs 37.58 crore in March 2014. PBIT margins for the June 2014 quarter increased to 10.86% from the levels of just 8% in June 2013 and 9.96% posted in March 2014. 

On the bottomline front its June 2014 quarter PAT stood at Rs 21.39 crore as against Rs 4.09 crore posted in June 2013 and Rs 20.74 crore posted in March 2014. This translates into EPS of Rs 20.96 for June 2014 and Rs 20.21 in March 2014. There are a few adjustments made at the depreciation level. According to the adjustments, the company changed the depreciation method and lowered the depreciation for the quarter by Rs 0.30 crore. We feel, the change in depreciation method hardly impacts the performance of the company in long term. 

We have been quite bullish on the auto ancillary counters and performance of the company vindicates our stand. Rather, an additional factor that increases comfort level in the counter is, not a single share of the company is pledged. We recommend the readers to buy the scrip at current levels.