Jay Bharat Maruti

YoY, the company has reported a turnaround – from a net loss of Rs.4 crore in Q4FY14, it showed a net profit of Rs.10 crore. Sequentially, its been a flat growth in bottomline – its net profit in Q3 was at Rs.11 crore. Although a closer scrutiny of the numbers shows that YoY growth sales in net sales was flat at 1.2% and more than operational efficiency, two other factors helped the turnaround. Firstly, the company in Q4FY15 had an other income of Rs.6 crore compared to Rs.1 crore in previous Q4 and secondly, in Q4FY14, the company had an exceptional expense of Rs.14 crore – cost of replacement of a component to a customer which actually pushed the company into the red.

This auto part and equipment making company is a JV between the JBM Group and Maruti Suzuki, which holds 29.25% stake. JBM Industries holds 2.85%. Total promoter holding is at 58.56%. Around 90% of its business comes from Maruti while the rest is sold to Eicher Motors and M&M. A small cap and low volume company, returns are capped and fortunes are inevitably linked with that of Maruti. Hopefully, with Maruti expected to do much better in coming months, FY16 could be much better.

The company ended FY15 with a net profit of Rs.40 crore, up 150%. On an equity of Rs.10.82 crore, reserves stands at Rs.196 crore and EPS is at Rs.18.47 (face value of Rs.5).