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AliconCastalloy is an industry leader in Low Pressure Die Casting (LPDC) and Gravity Die Casting (GDC) in India – in terms of volume, infrastructure and technical capabilities. The Company offers single point engineering solutions in various industrial pockets including automotives, locomotives, medicals, energy and agriculture segments. It offers its clients, end-to-end system solutions, including prototype designing and manufacturing, tool designing and simulation, tool manufacturing, fixture designing and manufacturing, casting manufacturing, VA/VE suggestions, machining as well as painting.
Alicon caters to the capital component input needs of various sectors such asautomobiles, agriculture, aero and marine, locomotive, infrastructure, energy, defence, medical and health and others.
The companyhas operations spread across in India, Austria and Slovakia with 4manufacturing plants (1 international), a technology centre, globally competent tool rooms, quality and testing laboratories and a full-fledgedmachine shop (including a sub-assembly facility).
It is also pioneers of the unique Pie system for low pressure die casting – a system which enhances productivity with minimum utilization of resources like machines, space and manpower.
Today, the Alicon Group is a union of AliconCastalloy Ltd (formerly known as EnkeiCastalloy), Atlas Castalloy Ltd., Silicon Meadows Engineering Services Ltd &IllichmannCastalloy, GmbH &s.r.o., all grouped under one umbrella.
September 2017 quarter consolidated results
On consolidated basis, in September 2017 quarter, sales jumped 26% to Rs261.83crore. OPM fell 160 basis points to 9.4% which saw OP grow 8% to Rs24.73crore.
Other income jumped from Rs 26 lakh to Rs 3.65 crore and interest cost rose 8% to Rs7.15crore. As depreciation rose 12% to Rs7.75crore, PBT went up 40% to Rs13.48crore. Provision for tax jumped 40% to Rs3.91crore after which PAT grew 40% to Rs9.57crore.
Six months consolidated results
For the six months, on consolidated basis, sales jumped 18% to Rs459.14crore. OPM fell 80 basis points to 9.9% which saw OP grow 9% to Rs45.55crore.
Other income jumped 403% to Rs 6.08 crore and interest cost rose 12% to Rs14.57crore. As depreciation went up 10% to Rs15.14crore, PBT went up 34% to Rs21.92crore. Provision for tax jumped 40% to Rs6.24crore after which PAT grew 31% to Rs15.68crore.
Increased stake of by the Japanese partner is a reflection of the trust in its business philosophy and confidence towards management and vision
On 6th November 2017, AliconCastalloy has allotted 8,60,000 equity shares of Rs 5 each at Rs 479 per share to Enkei Corporation, Japan on preferential basis.
Post the allotment, the paid up share capital of the Company has increased to Rs 6.68 crore divided into 1,33,65,510 equity shares of Rs 5 each.
As part of its G5 2020-21 vision, the company had planned investments which required it to infuse fresh equity. A number of Investment Banks were interested in participating, but its Japanese partner, Enkei Corporation stepped up to make the investment. The increased stake of Enkei Corporation in Alicon is a reflection of the trust imposed by Enkei in its business philosophy and confidence shown towards management and vision. This extraordinary support from its Japanese partner will help the company in its efforts towards development of technology and becoming more innovative.
Valuation
The share price trades at Rs 595.
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