Atul Auto Q1FY18 Concall Summary

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Industry Outlook

  • For Q1FY18, the overall industry growth has been 7%, domestic market has grown by 6% whereas the export market has grown by 14%.
  • Domestic growth is limited to passenger vehicle and 2 wheelers only.
  • Commercial vehicles that is MHCV, LCVs and micro-LCVs including 3-wheelers industry has seen negative growth.
  • Overall 3-wheeler industry has declined by 8.9%, out of which domestic market has fallen by 25% while export market has grown by 25%.

Q1FY18 for Atul Auto:

  • Sales volume for the company have grown by 18% as against negative growth of 8.9% in industry volume.
  • Domestic sales for the company has grew by 12% as against negative 25% growth in industry.
  • In export market, the company has seen growth by 1.57 times as against growth of 25% in the industry.
  • In Q1FY18, the company have sold 8794 vehicles as against 7606 vehicles during Q1FY17
  • In cargo business, the company has achieved increase in sales by 23%, the numbers are 4582 vehicles which has put the company at number 2 position in the segment.
  • Overall market share in cargo application has remained 17% for the company.
  • In passenger segment, the company has 4392 vehicles with the growth of 13% in the segment.
  • The domestic sales for the company has remained 8107 vehicles as against 7270 vehicles in Q1FY17, registering growth of 12%.
  • In export market, the company have sold 865 vehicles as against 336 vehicles last year in Q1FY17.
  • The company is supplying petrol fuelled vehicles in five states as of now in Q1FY18

Financial performance:

Atul Auto Q1FY18 Financial Highlights.png
  •  Net profit for the Q1FY18 has been 781 lakhs which is up by 62% compared to Q1FY17.
  • Profitability has remained 6.06% as against 4.66% in Q1FY17.
  • EBIDTA has improved to 9.78%, which is up by 151 basis point.
  • The company has been able to maintain its debt free status in Q1FY18.


  • The company has offered e-rickshaw to few selected dealers and the response have been good. The numbers will start improving from Q1FY18 onwards.
  • On a single charge the vehicle will be able to run up to 80 km and charging time is between 7 hours and 8 hours. The life of a battery is around 10 months to 12 months.
  • Batteries for the products are being sourced from Exide and Amaron.
  • The company is giving warranty of 2 years on e-vehicles thus the longevity of Atul e-rickshaw is as good as Bajaj 3-wheelers.
  • The company has launched the products in Bihar and Gujarat.
  • The market demand for e-rickshaw is around 120,000 vehicles a year.
  • On the capacity of manufacturing electric three wheelers, the plant has got fungible capacity thus it can manufacture entire 60,000 vehicles.


  • The company is planning to incur CAPEX of 100 crores for Ahmedabad plant, of which 45 crores are already spent and the next decision will be made after H2FY18. The 45 crores expense is not accounted yet.


  • By the end of FY18, the company is hopeful of increasing strength of dealers by 15% to 20%.
  • On the alternative fuel engine front, the company is quite confident of getting HT approvals from all the states and implement a PAN India roll out of vehicles by end of FY18.

Domestic Market:

  • The company has launched gasoline fuelled engine in Gujarat, Rajasthan, Haryana, Punjab and Karnataka.
  • Rural market contributes almost 50% to the sales of the company.

Export market:

  • The products are being exported to 3 Latin American countries and 6 African countries.

Future Outlook:

  • The company is hopeful of attaining 5000 average volumes in coming months including exports.