ASK Automotive Ltd. shares surged as much as 13% on Wednesday after the auto components maker reported a strong set of earnings for the June quarter, supported by robust growth in revenue and profitability.
Today's rally further added to the prolonged surge in the stock price, as it has already delivered a return of more than 100% over the past 33 months.
The stock is currently trading at Rs 626.35 apiece on NSE, gaining around 74.4 points from the previous close at Rs 551.3.
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Revenue Growth Drives Quarterly Performance
The company reported a consolidated net profit of Rs 85 crore for the first quarter, up 28.8% from Rs 66 crore in the corresponding period last year.
Revenue from operations rose 52.4% year-on-year to Rs 1,358 crore compared with Rs 891 crore in the year-ago quarter, reflecting healthy demand across its business segments.
Operating performance also improved during the quarter. Ebitda increased 34.2% year-on-year to Rs 160.6 crore from Rs 119.6 crore a year earlier.
Despite the sharp increase in revenue and operating profit, profitability at the margin level softened. The company's Ebitda margin stood at 11.8% in the June quarter, compared with 13.4% in the same period last year, indicating that costs rose faster than operating income.
Investors, however, appeared to focus on the strong topline growth and double-digit increase in earnings, pushing the stock sharply higher during the trading session.
Stock Price Since Listing
The latest quarterly performance adds to the company's strong long-term track record. ASK Automotive shares have doubled investors' wealth over the past 33 months, that is, since the company got listed, underscoring sustained business growth and improving financial performance.
In the past year, the stock delivered a return of around 33%, and 38% in the past month itself.
Currently, the stock is trading at a price-to-earnings multiple of 34.35 times, and has a market cap of Rs 12,349.01 crore as at the end of the preceding trading session.
Market participants will continue to watch the company's ability to maintain revenue momentum while improving margins in the coming quarters amid evolving demand trends and input cost dynamics.
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