Yuken India

The company is a leading manufacturer of oil hydraulic equipments in collaboration with Yuken Kogyo Company of Japan. Total promoters stake as at 30th Sept 2012 stood at 52.54% of which the Japanese company held 40%. Its captive foundry unit at Bangalore provides over 90% of its castings requirement. Like in Q1Fy13, the performance was not very enthusing in Q2, with YoY net sales dropping 5% and net profit was down 82% at Rs.41 crore. Apart from falling topline, a 10% rise in raw material cost, 12% rise in employee cost, 63% jump in depreciation and 47% surge in interest outgo pushed the bottomline down. Operating cost ate away 97% of the topline compared to 92% in Q2FY12.

Its total debt currently stands at Rs.39 crore. But the best part about the company is its tiny equity of Rs.3 crore, giving an annualised EPS at Rs.6 (face value Rs.10/share). More importantly, it is sitting on a fat reserve of Rs.49.15 crore. This is the overall lull in the economy which is reflected in the company’s performance or else, till these two quarters of current fiscal, the numbers have always been on a steady increase. In its 34 years of existence, most OEMs have accepted Yuken as their preferred partners for hydraulics.