PPAP Automotive shares surged 20%, reaching the upper circuit at ₹221.65 on the NSE, after the company reported solid financial results for Q2 and H1 FY25. The company, a key supplier for Maruti Suzuki and SMG, saw a significant boost in revenue and profitability, driven by improved operational efficiency and cost management.
Key Financial Highlights
- Revenue: Q2 FY25 revenue stood at ₹141.3 crore, up from ₹140.5 crore in Q2 FY24, while H1 FY25 revenue increased to ₹260 crore compared to ₹251.8 crore in the previous year.
- Operating EBITDA: A notable YoY growth of 45.5% was recorded, with Q2 FY25 EBITDA at ₹17.9 crore (up from ₹13.1 crore in Q2 FY24), and H1 FY25 EBITDA reaching ₹29.9 crore, resulting in an EBITDA margin increase from 8.2% in H1 FY24 to 11.5% in H1 FY25.
- Profit After Tax (PAT): PAT for Q2 FY25 was ₹5.6 crore, compared to ₹2.7 crore in Q2 FY24, while H1 FY25 PAT surged to ₹7 crore, a 6.5x growth compared to ₹1.1 crore in H1 FY24.
Business Outlook and Commentary
Ajay Kumar Jain, Chairman and MD of PPAP Automotive, expressed satisfaction with the company’s progress, highlighting the company’s focus on operational efficiency and customer relationships. The company aims to conclude FY25 with revenues between ₹550-575 crore and maintain EBITDA margins between 11-12%.
In addition, PPAP Automotive has initiated supply of parts for Maruti’s new Swift Dzire model. The Board has also declared an interim dividend of ₹1 per share as a token of appreciation for shareholders.
As of 10:08 am, shares were trading 20% higher at ₹221.65 on the NSE.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
