The company had posted a set of excellent numbers for Q1FY13 and the tempo seems to have got only better in Q2FY13. It company posted a 36% rise in net profit at Rs.70 crore on a 28% rise in net sales at Rs.715 crore. The performance is noteworthy given the fact that despite the slowdown in OEMs the company has come up with such a strong performance. The company continues to remain debt free status and has cash of Rs 340 crore as on September 30, 2012. It recently sub-divided face value of equity shares from Rs 2 per share to Re 1 each effective September 26, 2012. It is going ahead with expansion of two wheeler battery capacity with an investment of Rs.100 crore. Clearly, the internal accruals are enough to fund the capex.

The company has given a guidance of 14-15% for FY13 and in current Q1 it has already surpassed that at 17.2%. Its net profit for H1FY13 at Rs.146 crore is already 68% of 12MFY12 net profit, with two more quarters to go, surely it will have a great FY13. As of 30th Sept 2012, company had reserves of Rs. 806 crore, with net worth of Rs. 823 crore. The depreciating rupee is a concern but its operational efficiencies will more than outdo any such factors. A long term stock for the portfolio.