Universal Autofoundry Limited (UAL), a manufacturer of Graded Grey Iron and S.G. (Ductile) Iron Components, has taken a significant step towards expanding its operational capabilities. The company has signed a Memorandum of Understanding (MOU) with Kranti Industries Limited for the leasing and operation of UAL's machine shop facilities.

Key Details of the MOU

• Effective Date: January 1, 2026
• Duration: Seven years, including a three-year lock-in period
• Scope: Leasing and operation of UAL's machine shop facilities
• Location: Consolidation of UAL's machine shops from two locations to one at Unit 3 plant in Sargoth, Sikar District, Rajasthan

Collaboration Highlights

• Kranti Industries will operate and manage the consolidated machine shop
• Focus exclusively on machining cast components of UAL
• Aims to improve workflow, enhance production capacity and quality consistency
• Expected to accelerate delivery timelines

Strategic Benefits for UAL

• Allows UAL to focus more on core foundry operations
• Ensures machined products meet global quality standards
• Optimizes asset utilization
• Potentially enhances operational efficiency in the machining segment

Company Background

Universal Autofoundry Limited specializes in the manufacture of:

• Graded Grey Iron Components
• S.G. (Ductile) Iron Components

The company's production facilities are spread across three units:

• Unit-1: B-307, Road No. 16, V.K.I. Area, Jaipur, Rajasthan
• Unit-2: B-51, SKS Industrial Area, Reengus, Sikar, Rajasthan
• Unit-3: A2-4, A18-20, Udhyog Vihar, Sargoth, Reengus, Sri Madhopur, Rajasthan

Corporate Information

This collaboration marks a noteworthy development for Universal Autofoundry Limited, potentially impacting its operational strategy and resource utilization. It's important to note that no promoter, promoter group, or related party has any interest in the transaction. Investors and stakeholders will likely be keen to observe how this partnership unfolds and its implications for the company's future performance in the automotive components sector.

Universal Autofoundry Limited , a manufacturer of graded grey iron and ductile iron components, has released its financial results for the first quarter. The company's performance shows a decline in both revenue and profitability compared to the previous quarter.

Financial Highlights

• Revenue from operations stood at ₹4,662.74 lakhs, down from ₹5,150.70 lakhs in the previous quarter.
• Net profit decreased to ₹68.37 lakhs from ₹241.08 lakhs in the prior quarter.
• Basic earnings per share (EPS) for the quarter was ₹0.55.
• Total assets increased to ₹14,948.07 lakhs from ₹14,110.60 lakhs.

Quarterly Performance Analysis

Universal Autofoundry's financial results reflect a challenging quarter for the company. The revenue from operations saw a decline of 9.47% compared to the previous quarter. This decrease in revenue was accompanied by a more significant drop in net profit, which fell by 71.64%.

Balance Sheet Overview

Despite the decline in quarterly performance, the company's balance sheet shows some positive movement:

• Total assets increased by 5.93% to ₹14,948.07 lakhs.
• The company's inventory levels rose to ₹2,482.65 lakhs from ₹2,352.92 lakhs.
• Trade receivables saw a substantial increase to ₹3,785.00 lakhs from ₹2,039.92 lakhs.

Management Commentary

The Board of Directors approved these unaudited standalone financial results in their meeting held on August 6. The company continues to operate in a single business segment of manufacturing and sale of CI castings.

Corporate Governance Updates

In addition to the financial results, Universal Autofoundry made several key announcements:

1. Appointment of Mrs. Jayanti Jha Roda as Company Secretary and Compliance Officer.
2. Re-appointment of Mr. Vimal Chand Jain as Chairman and Managing Director for a five-year term, subject to shareholder approval.
3. The company's 16th Annual General Meeting (AGM) is scheduled for September 19, to be held through video conferencing.

Outlook

While the company faced headwinds in the first quarter, the increase in total assets and trade receivables might indicate potential for future growth. However, the significant decline in profitability will likely be an area of focus for management in the coming quarters.

Investors and stakeholders will be watching closely to see how Universal Autofoundry navigates the challenges and capitalizes on opportunities in the foundry sector for the remainder of the fiscal year.