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Earnings Call Transcript

ASK Automotive Earnings Call Transcript: Key Takeaways

ASK Automotive delivered record Q1 results with 52.1% revenue growth, though margins were optically compressed by a 33% pass-through impact of aluminum alloy price inflation.

Guidance and delivery
Revenue guidance 15.0% → 18.0% Raised by 3.0 percentage points
Management target Revenue 18.0% FY27
Highlights
Revenue growth52.1% reported growth; 25.3% growth excluding raw material price pass-through.
MarginsEBITDA margin at 12% impacted by denominator effect from alloy prices.
Order bookConfirmed alloy wheel orders of 70-90cr (FY27) and 250cr (FY28).
Demand visibilityStrong domestic two-wheeler demand and favorable monsoon supporting rural recovery.
Management confidenceHighly optimistic, revising growth guidance upwards to high-teens for the year.

Growth

Net revenue grew 25.3% excluding pass-through impacts; PAT rose 28.8% to 85 crore.

Outlook

Revenue guidance raised to high-teens for FY27; Capex increased to 700 crore for South India expansion.

Risks

EBITDA margin percentage suppressed by raw material pass-through; high debt levels from rapid capacity expansion.

Last quarter's promises, checked

Delivered

  • Guided wheel assembly revenue nil from Apr 1 → delivered nil (= BEAT)
  • Guided mid-teens revenue growth for FY27 → delivered 25.3% net growth (= BEAT)
  • Guided alloy wheel supply start in H2 → delivered on track with Japanese customer (= BEAT)

Partly delivered

  • Guided 400cr FY27 Capex → delivered 700cr (Significant upward revision) (= PARTIAL)

Missed

  • Guided 13.1% EBITDA margin maintenance → delivered 12.0% (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: ASKAUTOLTD. Summary written with AI assistance from the document.

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ASK Automotive Ltd: key numbers

Share price
₹645.15
Market cap
₹12,719 Cr
Revenue (annual)
₹4,176 Cr
Net profit (annual)
₹297.3 Cr
P/E (TTM)
40.2×Sector 33.6×
Promoter holding
74.95%+0.00% QoQ
FII holding
9.50%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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