Shares of a renowned auto ancillary company specialising in precision component manufacturing surged nearly 9 percent on BSE to Rs. 70.99 on Thursday, after receiving final clearance from a Belgium-based customer for the start of commercial production of the products of Agri Implements Products.
With a market capitalisation of Rs. 77.5 crores, at 12:14 p.m., the shares of Kranti Industries Limited were trading in the green at Rs. 67.93, up by 4.2 percent, as against its previous closing price of Rs. 65.19.
What’s the News
According to the latest regulatory filings with the BSE, Kranti Industries received a final clearance from its customer CNH Industrial Belgium NV, based in Belgium and Grand Island, for the start of commercial production of parts for the Agri Implements project.
The company has developed 5 specialised precision parts for the project and has submitted the samples and trial batches in the past 12 months. With the recent approvals from the customer, Kranti Industries has also established production schedules for the next four quarters.
The order is valued at Rs. 57 lakhs, and the company plans to increase its production in accordance with customer requirements, beginning supplies by the end of October 2024.
This strategic initiative enhances Kranti Industries’ global presence, enabling it to serve esteemed clients in Belgium and Grand Island.
Previous News
On 1st August, Kranti Industries announced the securing of a purchase order valued at Rs. 13.6 lakhs from Kalyani Technoforge Limited, marking a significant milestone in its expansion into the EV sector.
This accomplishment further enhanced the company’s position in the rapidly growing EV market.
Under the contract, Kranti Industries had to provide precision machined components to Kalyani Technoforge Limited, intended for use in EVs, thereby adding to its expanding portfolio in the EV market.
Financials
The company reported a decrease in revenue from operations, experiencing a year-on-year decline of nearly 21.7 percent, falling from Rs.
25.8 crores in Q1 FY24 to Rs. 20.2 crores in Q1 FY25.
During the same period, the company’s PAT fell from a profit of Rs. 0.14 crores to a loss of Rs. 0.98 crores, primarily due to increased raw material costs, higher finance expenses, and elevated depreciation and amortisation charges.
The heightened depreciation, stemming from the merger and capital expenditures in previous quarters, also contributed to this negative outcome.
Segmental Revenue Contribution & Future Growth
In Q1 FY25, Kranti Industries’ Tractors segment contributed 70.2 percent of the revenue, while the Construction Equipment segment accounted for 15.3 percent.
The Electric Vehicles (EVs) segment contributed 4.7 percent, the Automotive segment made up 2.3 percent, and the remaining 7.5 percent was derived from other categories.
Looking ahead, the company remains optimistic about its future, supported by a growing order book that includes value-added products from the EV and Baler Projects. Kranti Industries continues to focus on operational efficiency and cost optimisation to enhance profitability.
Stock Performance
The stock has delivered negative returns of nearly 21 percent of returns in one year, as well as around 9.4 percent returns in the last six months. So far in 2024, the shares of Kranti Industries have given negative returns of about 26 percent.
About the Company
Established in 1995, Kranti Industries Limited is a premier engineering company engaged in the field of engineering products and serves the needs of Automobile manufacturing companies like CNH Industrial (India) Private Limited, Graziano Transmission India Private Limited, Escorts Limited, Neosym Industry Limited, and more.
Written by Shivani Singh
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