- 30 Sep 2024
- ICICI Securities
JAMNA AUTO REPORTS STABLE PERFORMANCE IN Q1FY25
News: Jamna Auto reported steady performance in Q1FY25. Net sales for the quarter came in at ₹ 557 crore, down 3% YoY amid ~2% YoY growth in M&HCV production volumes. EBITDA in Q1FY25 stood at ₹ 75 crore with EBITDA margins at 13.4%, down 50 bps QoQ however up 70 bps YoY amid supportive gross margins. PAT for the quarter stood at ₹ 46 crore, up 2% YoY.
Views: Topline for the quarter was marginally short of estimates. On the new initiatives front, the share of new products in sales mix remained unchanged at ~46% vs. the slated target of ~50% by FY27E while on the new markets front, the share of sales stood at ~23% vs. the slated target of 50% by FY27E. With company setting up a new plant for VECV as well as foray into new segments such as Agri-implements, we hold a positive view on the company with long term investment horizon. Expected revival in CV sales volume in H2FY25E is added positive.
Impact: Neutral