Ask Automotive's advanced braking system business maintained its leadership position with a 26% Y-o-Y growth in Q1 FY25. Aluminium Light Weighting Precision Solutions segment saw a revenue increase of 39%, while the safety control cables recorded a 33% revenue growth in the same period.
The company credited the improvement in EBITDA margins to better economies of scale due to higher volumes, the ramp-up of production at the new Karoli manufacturing facility, and continuous cost optimization efforts.
Ask Automotive reported a Profit After Tax (PAT) of INR 57 crore in Q1 FY25, marking a 63% Y-o-Y growth. CRISIL has revised the company’s outlook to Positive from Stable and reaffirmed its rating to A1+ for short-term and AA- for long-term.
Kuldip Singh Rathee, Chairman and Managing Director, remarked, "During Q1 FY25, we delivered strong performance in our business and recorded significant growth of +31% in revenue, +59% in EBITDA and +63% in PAT on Y-o-Y basis. This is the highest ever absolute Revenue and EBITDA earned by us in any quarter in past. Also, we have yet again outperformed the 2W industry vehicle production growth in Q1 FY25."
He added, "I am delighted to share that we achieved EBITDA margins of 11.9% in Q1 FY25 which is 210 bps higher than Q1 FY24 and 100 bps as compared to Q4 FY24. Now our aim is to sustain this level of EBITDA margins and improve gradually in the subsequent quarters. This reflects the result of our continued focus on expanding value-added businesses, improving utilization of production capacities, and bringing cost efficiencies. We are hopeful of outperforming the industry growth in the subsequent quarters of FY25. We are committed to keep contributing towards the value creation for our Stakeholders and Investors."
This robust financial performance demonstrates Ask Automotive's strong operational capabilities and strategic growth initiatives. The outlook for the company remains positive, and the management is optimistic about sustaining and further improving these metrics in the upcoming quarters.
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