Amtek Auto Jan-Mar consolidated net rises 30%

Amtek Auto Jan-Mar consolidated net rises 30%

Mumbai: Amtek Auto Ltd , which makes auto ancilliaries, on Friday reported a 30% rise in consolidated January-March net profit on higher sales and said it has increased capacity to meet the demands of auto makers.

Consolidated net profit rose to 1.1 billion from 852.3 million a year ago. Total sales increased to 11.7 billion from 9.2 billion .

On a standalone basis Amtek Auto had reported a 47% rise in quarterly profit on higher sales.

“We have seen good growth in domestic market, domestic sales have grown 29 %. This is a positive trend," said Santosh Singhi, chief financial officer at Amtek Auto.

Domestic sales rose to 10.1 billion from 7.88 billion in the same quarter last year, he said.

Auto sales in India grew a record 30% in 2010/11 to 1.98 million units, driven by a burgeoning middle class in Asia’s third-largest economy, easier access to loans and a wider choice of models.

However, sales are expected to more than halve this fiscal year to 12-15 % on higher input costs and interest rates.

Singhi said the company had been increasing both its machinings and forgings capacity over the past one year to cater to rising demand.

Its machining capacity rose to 33 million units by end March from 31 million in March 2010. Its forgings capacity rose from 135,000 tons in March last year to 165,000 tons now.

“We are trying to increase the capacity utilisation. In machining we have reached about 66%, in forgings about 50%," he said.

“We can more than double production from here even if we do not go in for more acquisitions".

Amtek Auto has been growing through joint ventures in recent months. It has a joint venture with US-based American Railcar to make wagons.

It has signed a memorandum of understanding with South Korean automaker Autech Corp to make vehicles for defence, para-medical sectors and has also signed another JV with Israel’s Enertec Management Ltd to develop and manufacture electronic equipment for military applications.

Amtek Auto shares closed down 3.03% at 163.4 in the Bombay Stock Exchange. The firm had reported the results after market hours.