Igarshi Motors hits a new high

Igarshi Motors is having a good run on the bourses today.  The stock hit  a new high today at Rs.538.20 with volumes up almost 2.5 times. It has come off the high but remains firmly at Rs.525 levels, up around 7%.

The market is reacting to the good number the company posted 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.