The shares of Auto Ancillaries company, specializing in manufacturing of Advance Braking Systems for two-wheelers, hit a 5 percent upper circuit upon entering into a strategic partnership with Kyushu Yanagawa Seiki Co., Ltd (Japan)
Price action
With a market capitalization of Rs. 7,028.13 crores on Tuesday, the shares of ASK Automotive Limited hit a 5 percent upper circuit making a high of Rs. 356.50 per share compared to its previous closing price of Rs. 339.55 per share.
What Happened
ASK Automotive Limited, India’s largest manufacturer of brake shoes and advanced braking systems for two-wheelers, has signed an agreement with Kyushu Yanagawa Seiki Co., Ltd. (KYSK) from Japan.
This agreement allows ASK Automotive to produce high-pressure die-cast alloy wheels for two-wheelers with KYSK’s technical support and expertise. The wheels will be supplied to a specific Japanese customer and it aims to design and produce high-quality alloy wheels that ensure safety, meet global standards, and offer superior performance for two-wheelers.
Management Commentary
Mr. Kuldip Singh Rathee, Chairman and Managing Director, ASK Automotive Limited, said, “With over three decades of experience in the Indian automotive industry, we have a deep understanding of the market and the needs of OEMs. Today, alloy wheels have become a critical component across all segments, especially in two-wheelers, ranging from premium-level to entry-segment.
Our legacy and expertise in Aluminium Light Weighting Precision Solutions will support the development of high pressure die casted alloy wheels for two-wheeler. Our partnership with KYSK will facilitate us with critical technical assistance and know-how, helping us meet the required standards and manufacture the best in class products for our Identified Customer.”
About the company
ASK Automotive Limited is the largest manufacturer of brake shoes and advanced braking systems for two-wheelers in India with ~50 percent market share in OEMs. The Company offers powertrain-agnostic products in both automotive and non-automotive segments with a focus on EV and Exports. The Company has diversified its operations and offers products under Advanced Braking Systems, Aluminium Light weighting precision solutions, and Safety Control Cables business segments.
Financials
The company’s total revenue rose by 20.46 percent from Rs. 763.12 crore to Rs. 919.25 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 49.94 crore to Rs. 65.89 crore during the same period.
Written by Sridhar J
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