Precision profit grows by 254% for nine months ended December 2019

Solapur Based Precision Camshafts Limited on 10th February’2020 posted 254 Per cent increase in consolidated net profit to Rs 33.02 crores.

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Solapur Based Precision Camshafts Limited on 10th February’2020 posted 254 Per cent increase in consolidated net profit to Rs 33.02 crores. This includes the compensation received for loss of business from Ford worth Rs.11.10 crores for the nine months ended December 31, 2019. In the corresponding period previous year, the consolidated profit was Rs.9.32 crores.

The company has grown by 14.51 per cent during the nine months ending December’2019 from Rs 510.48 crores to Rs. 584.53 crores. Company registered consolidated EBIDTA of Rs.102.45 crores.

Out of the total income of Rs. 584.53 crores PCL Contributes 69% i.e. Rs.333.85 crores and balance Rs.250.68 crores is generated by the subsidiary companies.

Out of the Rs.333.85 crores, 62.4% of the total revenues are realised from the export operations during the period of nine months ended December’2019.

General Motors & Ford Motors remained the biggest customers of the PCL India.

Commenting on the results, Mr Yatin Shah, CMD said: “We continue to grow in international market by increasing our export sales, particularly machined camshafts wherein our entire proceeds of our IPO has gone into setting up of the machine shop. This has resulted into increased profitability as Machined Camshafts witnessed highest ever take off in past 7 quarters wherein, we are hopeful of utilising maximum capacity in coming years.”

Standalone performance of the company strengthened during the nine months period ending December’19. Standalone net profits increased by 126% to Rs. 50.59 crores (which includes exceptional income), whereas Revenues of Standalone Company improved 10.98 percent to Rs.333.85 crore.

Without considering the exceptional item, standalone net profit margins improved to 19.36% for the quarter ended December’2019. This is one of the highest profit margins of the PCL on standalone basis in last 7 quarters.

International Subsidiaries viz EMOSS & MFT, which were acquired from the internal accruals of the company, have registered growth in the sales during these 9 months.

Our Indian Subsidiary, MEMCO has grown in revenues in-spite of the sluggish market situations in India and having major customer like Bosch.

Company is increasing its management bandwidth for its Indian as well as its overseas subsidiaries for better profitability and growth.