- Atul Auto has seen negative growth of 12.42% as compared to 19.54% de-growth of overall industry.
- Net profit margin for Q3FY17 is 9.19% as compared to 9.68% in previous quarter and 10.56% in Q3FY16.
- EBIDTA margin has remained 15% for Q3FY17.
- EPS for Q3FY17 is Rs. 5.6 which is down by 0.69 paisa compared to Q2FY17.
- Raw material consumption has increased by 41 basis point on account of increase in commodity prices.Because of increase in raw material cost, EBIDTA for Q3 has dropped by 1% compared with Q2FY17.
- Account receivables has reduced as compared to previous quarter and debt-free status is maintained.
- Volume for the company in domestic market has dropped by 18.9% which is in line with industry’s drop of 18.3%in Q3FY17.
- In overseas market, the company has achieved 7x the volume of Q3FY16, while the industry saw decline of 22%.
- In Q3FY17, the company has sold 11,043 vehicles with turnover of Rs. 133.76 crores as compared to 11,761 vehicles and turnover of Rs. 142.7 crores in Q2FY17.
- Domestic sales for Q3FY17 has remained 10,116 vehicles as against 11,253 vehicles for Q2FY17. Export sales have increased to 927 vehicles against 508 vehicles in Q2FY17.
- Out of 11,043 vehicles sold in Q3FY17, passenger auto is 6069 vehicles and remaining are load carriers.
- The market share of the company in cargo segment has remained 18% whereas in passenger segment it is 6%.
- Till December 2016, the overall Auto industry of India has registered a positive growth of 6.67%, domestic market grew by 9.42% whereas export has de-growth of 7.37%.
- Because of the impact of Demonetization, volume growth for auto industry has remained negative 3.33%.
- 3-wheeler industry has seen overall decline of 14.8% till December 2016. Domestic market have flat growth rate of 1.88% while in international front, export have declined by almost 35%.
Bharat stage 4:
- BS4 complying products are ready. The company will get certificates of the products by end of February 2017.
- When BS4 becomes effective from April’17, raw material cost may go up between 5% and 7%.
- The company is likely to launch E-rickshaws from Q1FY18.The market size for electric vehicle in India is around 150,000 a year at 10,500 per month.
- The product will approved by authorized certifying agency and it will be meeting government norms.
- The product will be distributed through authorized dealers so after-market services will also be available. Warranty will also be available on critical components.
- The company will tie-up with retail finance company for easy availability of finance.
- Margin on these products will be in line with regular products.
- The company have 200 primary and 120 secondary distributors in the domestic market and 10 distributors in overseas market.
- As of now, the company is selling majority of diesel and petrol fuelled vehicles in Gujarat, Haryana, Rajasthan and Punjab.
Inventory Stock levels:
- Dealers’ stock levels have come down in Q3FY17 as compared to H1 of current fiscal year. Retail stock levels have gone up.
- The company has already crossed FY16’s figure of export of 1500 vehicles in first nine months of FY17.
- The company is targeting African markets and Latin American markets which are major destinations for 3-wheelers other than India.
- Demand for products in Africa is around 1,75,000 units per annum while for Latin American countries market demand is somewhere between 50,000 and 60,000 units per annum.
- In Africa the company is facing the challenge of having USC from the buyers. The African buyers are unable to get the FOREX which is a major concern in developing market.