Mumbai: Amtek Auto Ltd posted a nearly 12% rise in consolidated net profit for the January-March quarter, much lower from 56% a year ago, as margins were squeezed by high steel prices.
The company posted Jan-March consolidated profit of Rs1.35 billion, on net sales of about Rs13.5 billion, slightly above a Reuters forecast of Rs1.19 billion on sales of Rs13.3 billion.
Amtek Auto’s chief financial officer Santosh Singhi said the quarter benefited from a higher component of other income, at about Rs553 million, related mainly to sale of shares.
But margins fell sequentially to 15.59% from 17.67% in the December quarter as steel prices rose, and depreciation also went up as the company opened new facilities that are yet to reach high capacity levels.
Steel prices have risen almost 33% 2008 on higher raw material and freight costs.
Singhi said the June quarter is seasonally the weakest in terms of domestic market, but the company was still looking at marginal growth for the period.
Shares of the firm closed down 0.8% at Rs292 in a weak Mumbai market.