JBM Auto

JBM Auto had a disappointing Q4FY15 performance wherein its consolidated net profit showed a fall of 15% at Rs.17 crore on a flat, 0.54% drop in net sales at Rs.375 crore. Apart from the fall in topline, a 1.5% rise in costs, a 75% drop in other income, all together pulled down the bottomline. Tax outgo dropping 88% from Rs.11 crore to Rs.1.2 crore is probably what helped the most. Its component’s division contributes 98% to the earnings and it showed a flat performance while the other two were a drain. Its tool room division showed a sharp 94% drop in EBIT while the Bus division posted a loss.

The company entered into a new segment – of making buses at its Kosi plant and it began commercial production on 21st March 2015. It expects to begin deliveries of the buses from next month and it has an order book of 200 buses from state transport undertakings and airport operators. This is through a partnership with European bus maker BredaMenarininbus (BMB) and it has invested Rs.500 crore to manufacture these buses with a localisation of 85%.