By Aditya Raghunath
Investing.com -- So far, 2021 hasn’t been a great time for the auto industry, including auto components. Jamna Auto Industries Ltd (NS: JMNA ), the largest manufacturer of suspension springs for commercial vehicles in India, and the third-largest in the world, also bore the impact of the slowdown. The company counts the likes of Tata Motors Ltd (NS: TAMO ), Ashok Leyland Ltd. (NS: ASOK ), Volvo, and Bharat Benz as its customers.
However, the stock has delivered solid returns of around 85% in the last one year and 43% in 2021. A key point on Jamna Auto’s stellar performance is that it was able to deliver increased profits despite a slowdown in revenues.
For FY21, the company reported its lowest revenues in five years but its net profits increased 50% to Rs 73 crore on a year-on-year basis.
EBITDA for Q1 FY22 came in at Rs 36 crore as the lockdowns in different states impacted business. Now the company is planning to launch new products like machining products, U-Bolts, hanger shackles, and spring pins. These will be manufactured at their facilities in Pant Nagar and Indore. Pant Nagar will be operational in H2 of FY22 while Indore will start off in FY23.
The company has also improved its IT systems by choosing Ramco Systems as its partner. This will lead to better efficiencies in production and logistics.
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