Axles India posted its FY24 results

23 October 2024

• Revenue and Profitability: In FY24, the company experienced a substantial increase in revenue, with a 14.4% rise from ₹746 crore in FY23 to ₹854 crore. This growth was driven by increased sales of products and services across various categories, especially automotive components and tools. The profit after tax (PAT) also surged by 63.8%, reaching ₹86 crore compared to ₹53 crore in the previous year. The higher profitability is attributed to better cost management, increased operational efficiency, and improved market conditions.
  
• Financial Position: The company's total assets grew from ₹416 crore in FY23 to ₹518 crore in FY24, reflecting a 24.5% increase. Notable improvements include an increase in inventories by ₹86 crore, highlighting higher stock levels to meet rising demand, and a substantial boost in trade receivables. On the liabilities side, total liabilities rose from ₹205 crore to ₹243 crore, primarily driven by a 37% increase in current borrowings. Equity also saw growth, with total equity rising by 30.2% to ₹275 crore.
  
• Future Prospects: The company maintains a positive outlook for the coming years, driven by continuous demand for automotive components in both domestic and international markets. While the domestic market may experience some fluctuations due to stock adjustments, international exports, especially to the USA and Mexico, show stable growth prospects. Additionally, ongoing efforts in product innovation and customer engagement are expected to support future expansion. The company plans to address logistical challenges proactively to ensure supply chain continuity.