Auto component maker Talbros on Friday reported a whopping 144 per cent jump in consolidated net profit at Rs 10.6 crore for the quarter ended in December.
The company had posted a net profit of Rs 4.3 crore in the third quarter of the financial year 2019-20, Talbros Automotive Components Ltd (TACL) said in a release. Total Income from operations rose 35.6 per cent to Rs 132.1 crore in the third quarter of financial year 2020-21 as compared to Rs 97.4 crore revenue in October-December period of the previous fiscal year.
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"We had started off the year at lower pace amid pandemic, while in the third quarter, we have achieved highest-ever revenue numbers with over 35 per cent growth Year-over-Year and remarkable EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins despite the rollback of certain costs. We have grown faster than the Industry," said Anuj Talwar, Jt. Managing Director, TACL. The company reported EBITDA of Rs 21.1 crore in the quarter under review as against Rs. 11.7 crores in the third quarter of 2019-20.
Despite partial rollback of cost saving initiatives, EBITDA margins grew 399 basis points Y-o-Y on account of higher utilisation of capacities and better product mix, Talbros said. "We are moving towards the road of evolution gradually. From 20 per cent exports in the previous fiscal, we have reached 24 per cent level in the current financial year. We aim to increase export to 30 per cent in the next five years," Talwar said.
He said the company appreciates the government's measures to support the industry, adding that the Productivity-Linked Incentive (PLI) scheme will add to the margins with increased exports. "Long-awaited scrapping policy for government and PSUs and addition of voluntary scrapping of vehicles for the private sector will boost up the demand of automobiles. We have vast experience in exports, and our technological partnerships are adding up marquee clientele to our portfolio. We remain positive on our path to recovery with the addition of multiyear orders to our company," he added.
During the quarter, Talbros 50 per cent JV Marelli Talbros Chassis Systems Pvt. Ltd signed a multiyear order with a large European car manufacturer with the supplies to begin the first quarter of the next fiscal, it said. The company also entered in a Technical Assistance Agreement with its Japanese partner 'Sanwa Packing Industry Co. Ltd for light-weight aluminium heat shields for Indian markets, the company said in the release.
TACL, together with JV alliances, has eight manufacturing facilities at Haryana, Uttarakhand, and Maharashtra along with one materials division in Gurgaon and R&D technology center at Faridabad. The company has technical collaborations with Nippon Leakless Corporation Japan and Sanwa Packaging Japan. The company has technical collaborations with Nippon Leakless Corporation Japan and Sanwa Packaging Japan.