Established in 1993, AliconCastalloy is one of India's leading rear axle shafts manufacturer. Its products find applications across on-highway vehicles (LCV, MCV, HCV and buses, among others) and off -highway vehicles (agricultural tractors and machinery, forestry, construction equipment, defence and mining, among others). AliconCastalloyhas a large variety of Axle Shafts ranging from 1.5kg to 65kg & capacity to produce upto 165kg producing about 2 million Axle Shafts annually. It also manufactures solid and hollow spindles used in assembling the axle for various vehicles and equipment.

Its products are widely used world over by the leading OEM manufacturers across USA, Sweden, Turkey, Brazil, Italy, Germany, Spain, Mexico, Japan, UK, France, China and Australia, among others. Besides, the company is also tier 1 suppliers to several Indian OEMs.

The OPM during the first quarter ended June 2018 rose 30bps to 10.9%due to decreased other costand employee expenses. Margin improvement was restricted due to higher raw material cost. Raw material cost (as a % to sales, net of stock) rose 300 at 51.5% during Q1FY19. Other expenses (% of sales net of stock)fell 130 bps to 23.4%. Employee expenses fell 220 bps to 14.1%.

Thus the operating profit rose 56% to Rs 32.48crore. Other income stood at Rs 2.79 crore, higher by 15%. PBIDT thus rose 52% to Rs 35.27 crore. After 21% rise in depreciation cost at Rs 8.97 crore and 6% rise in interest expense to Rs 7.88crore, PBT rose 118% at Rs 18.42 crore. After 163% risein tax provision (560 bps rise in tax rate) at Rs 6.12 crore, net profit stood 101% higher at Rs 12.3crore against profit of Rs 6.11crore in previous corresponding quarter.

Shares of AliconCastalloyclosed 5.4% higher at Rs 621.75at BSE on 24 July 2018, the following day after earnings were announced.