Munjal Auto on a roll!

Munjal Auto Industries is on a roll today. Going up almost 6% to Rs.113, the stock was just Rs,4 short of its 52-week high of R.117.80.

Two good news on the counter. Firstly, the company has declared a generous 1:1 bonus and also a 100% final dividend on its Rs.2 FV shares for FY17. Secondly, the company posted a very good performance for Q4FY17.

Mainly on the back of lower cost – operating as well as interest costs plus a rise in other income is what truly helped the company end the quarter with a 50% (YoY) rise in net profit at Rs.9 crore. Other income rose from Rs.44 lakh to Rs.1 crore and costs were down 7% and interest costs fell 40%. Net revenue was actually down 6% at Rs.234 crore.

Lowering of expenses also helped the EBITDA, which was up 8% at Rs.15.5 crore while margins rose from 6% to 7%.

The company ended FY17 with a 60% jump in net profit at Rs.32 crore. Equity is currently at Rs.10 crore and EPS came in at Rs.6.35 v/s Rs.4.02 (FV of Rs.2). Post this bonus, equity will double to Rs.20 crore.