Igarashi Motor

Igarshi Motors posted a good set of numbers for Q4FY15. It recorded a 11% (YoY) rise in net sales at Rs.102 crore and net profit rose by a whopping 70% at Rs.17 crore. What really helped, more than the topline, was the judicial reduction in costs – despite a 8% rise in raw material costs, total operating costs are down 2%. EBITDA was up at Rs.22 crore, up from Rs.10 crore (YoY). Margins came in very good at 21.57% v/s 10.87%. Other income of Rs.5 crore also helped. Interest cost was down 62% and there was also a forex gain of Rs.47 lakh. The company’s debt is less than Rs.50 crore.

This is no longer a Japanese company though it carries the name. This company was originally promoted as a JV between Crompton Greaves, Igarashi Electric Works of Japan and International Components Corporation, USA. But today, apart from Igarshi, all others have exited. And even Igarshi is no longer a promoter – it holds just 11.33% stake. The company is now owned by the promoters of another BSE listed company HBL Power Systems through Agile Electric. At as 31st March 2015, Agile holds 41.92% stake, promoter Mr.P.Mukund holds 32.60% - taking total promoter holding to 74.52%.

The company makes Permanent Magnet Micromotors and allied components, used  in automobiles, power tools, toys and other household appliances. The company ended FY15 with a net profit of Rs.49 crore, up 6%.