Ucal Fuel System posted a very muted performance for Q1FY16 and the market had seemingly guessed that and the stock price ended in the red, despite results coming in after market closure.

The company ended Q1FY16 with an overall dull performance with a drop in both topline as well as bottomline. Net sales for the quarter was down 12% (YoY) at Rs.112 crore and net profit was at a meager Rs.2.36 crore, down 24%. The company had ended FY15 with a net profit of Rs.20 crore. Clearly, it needs a lot of catching up to do in the remaining three quarters.

EBITDA for the Q1 was at Rs.14 crore, down 18% and margins came in lower at 12.5% v/s 13.38%. The fall in net profit, to some extent was curtailed due to a 14% drop in interest cost and 69% decline in tax outgo.

The company manufactures Fuel Management Systems for Automotive sector and also pumps, emission control parts and various components for both ferrous and non ferrous material. It is a preferred supplier for some of the top OEMs such as Maruti Udyog, Hyundai, Cummins, Bosch, Mikuni, General Motors, TVS Motor Company, Bajaj Auto, Suzuki, Yamaha, Hero Honda Motors, etc. The company’s equity is pretty high at Rs.22.11crore and reserves stands at Rs.284 crore.