Auto component maker JBM Auto reported strong earnings for the first quarter of fiscal 2022. The company’s net profit doubled on a year-on-year basis with revenue rising 57 percent. Margins witnessed a steady growth at 11.3 percent.
The company’s management expects the current margin growth to sustain with the revenue from original equipment manufacturers (OEM) to double.
“The Q4 numbers have been good as the company has been focusing to increase its top line and increase the efficiency level and we have increased our profitability significantly in this quarter. April month has been good, there has been some impact in the last few days of April, but in May we have seen shutdowns from many of our customers. Due to the lockdown in different parts of the country, there has been some impact. Still, we do not have much clarity how the month of June will pan out,” Nishant Arya, ED at JBM Group told CNBC-TV18.
As things are improving a bit in the northern region there are still lot of challenges in the southern region, he added.
“I see a mixed bag in the western region so I see it is a mixed house because we are present across the country so we clearly will have to see how the industry pans out in the coming weeks,” he said.
On the OEM segment Arya said, “As we have doubled from last year to this year, the minimum which we will look at is doubling in this year from the previous fiscal. So FY22 will be minimum double of FY21.”
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(Edited by : Ankit Gohel)