EV component maker Igarashi Motors sees strong Q1 results, stock up 11%

Chennai-based Igarashi Motors India Limited, a leading manufacturer of electric motors and components for the automotive industry, reported robust financial results for the first quarter ended June 30, 2024, sending its shares up 11%. The company saw significant growth across key metrics, with net profit soaring 472% year-over-year.

In a regulatory filing to the stock exchanges on August 8, 2024, Igarashi Motors announced a consolidated net profit of Rs 8.16 crores for Q1 FY2025, compared to Rs 1.43 crores in the same quarter last year. This remarkable increase in profitability was driven by strong revenue growth and improved operational efficiency.

The company’s revenue from operations jumped 32% to Rs 222.07 crores in Q1 FY2025, up from Rs 168.25 crores in Q1 FY2024. This growth was primarily fueled by increased demand in both the automotive and non-automotive segments.

Segment-wise, the automotive division continued to be the main revenue driver, contributing Rs 175.44 crores to the total revenue. The non-automotive segment also showed strong performance, generating revenue of Rs 46.63 crores.

The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at Rs 26.68 crores, representing a significant improvement from the previous year. The EBITDA margin also expanded, indicating better cost management and operational leverage.

On the balance sheet front, Igarashi Motors maintained a healthy financial position. As of June 30, 2024, the company’s total assets stood at Rs 794.51 crores, with a strong equity base of Rs 454.85 crores.

The company’s focus on innovation and expanding its product portfolio has been a key factor in its growth. Igarashi Motors has been investing in research and development to capitalize on the growing trend of vehicle electrification and the increasing demand for energy-efficient motors in various applications.

As the automotive industry continues its transition towards electrification and the demand for efficient motor solutions grows across sectors, Igarashi Motors seems poised for continued growth and success in the evolving market landscape. However, challenges remain in the form of global supply chain disruptions and potential economic headwinds. The company stated that it is closely monitoring these factors and has implemented strategies to mitigate potential risks.

The company’s shares were being traded at Rs 658.00 on the NSE in the morning.

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