Alicon Castalloy , a leading auto component manufacturer, reported a 5% year-on-year decline in revenue for Q1, amidst challenging global market conditions and evolving trade dynamics. The company's performance reflects both resilience in the face of headwinds and strategic adaptability in a complex operating environment.

Financial Performance

Alicon Castalloy posted revenue of Rs. 419.00 crore in Q1, down from Rs. 440.00 crore in the same quarter last year. Despite the revenue dip, the company showed improvement in profitability metrics:

• EBITDA improved to Rs. 50.00 crore with an 11.90% margin, up from 11.20% in the previous quarter.
• Gross margin stood at 45.90%, a slight decline from 47.50% in Q1 of the previous year, attributed to aluminum price increases and changes in sales mix.
• Pre-tax profit increased by 16% quarter-on-quarter to Rs. 15.00 crore.

Operational Highlights

The company's performance was influenced by several factors:

1. Global Trade Challenges: New U.S. tariffs, including a 25% tariff on Indian goods and an additional 25% penalty tariff for Russia-related trade, are expected to impact export demand.

2. Supply Chain Disruptions: China's restrictions on rare earth material exports have affected the EV industry, particularly impacting motor magnets supply.

3. Domestic Market Dynamics: The Indian automotive industry witnessed modest growth, with passenger vehicles up 3.40% and commercial vehicles up 2.60% year-on-year.

4. Product Mix: Passenger vehicles contributed 39% to revenue, two-wheelers 40%, and commercial vehicles 15%.

5. New Business Wins: Alicon added seven new parts from five customers, including two new logos, spanning structural, ICE, and non-auto businesses.

Strategic Initiatives

Alicon Castalloy is undertaking several strategic measures to navigate the current challenges and position itself for future growth:

1. Leadership Expansion: Appointment of Manish Kapoor as COO and Harshvardhan Gune as Head of Defense, Aerospace, and Railways vertical.

2. Technological Advancements: Integration of digital process controls, AI, and IoT technologies to enhance manufacturing excellence.

3. Sustainability Focus: Operationalization of a captive solar plant in India and installation of solar panels at the European facility.

4. CAPEX Plans: The company maintains its CAPEX target of Rs. 165.00-170.00 crore, focusing on strategic investments to enhance capabilities and drive growth.

Outlook

While facing short-term challenges, Alicon Castalloy remains optimistic about its long-term prospects:

• The company maintains a healthy order book of Rs. 9,100.00 crore.
• Management expects growth in Q2 and Q3, despite current headwinds.
• The focus remains on ramping up volumes with existing customers and capitalizing on new business wins.

Vimal Gupta, Group CFO, commented, "We are carefully monitoring the evolving developments in the macroeconomic environment and are confident that our deep engagement with customers and their growth plans provide comfort that we will see increased volumes going forward."

As Alicon Castalloy navigates through these challenging times, its strategic initiatives and robust order book position it well to capitalize on future opportunities in the automotive and non-automotive sectors.

Alicon Castalloy Limited has announced important dates for its shareholders regarding the final dividend for the financial year 2024-25. The company has set September 15, 2025, as the record date for determining shareholder eligibility for the dividend payment.

Dividend Details

Key Points

1. Record Date: The company has fixed September 15, 2025, as the record date for determining the eligibility of shareholders for the final dividend payment.

2. Book Closure: Alicon Castalloy's share transfer books will remain closed from September 15 to 19, 2025, both days inclusive.

3. Dividend Recommendation: The Board of Directors has recommended a final dividend of Rs. 3.00 per equity share, which represents a 60% dividend rate on the face value of Rs. 5.00 per share.

4. Financial Year: The dividend pertains to the financial year 2024-25.

Additional Information

In a separate announcement, Alicon Castalloy also held an analysts' conference call on August 8, 2025, following the release of its unaudited financial results for the quarter ended June 30, 2025. The audio recording of this call has been made available on the company's website, demonstrating Alicon Castalloy's commitment to transparency and investor communication.

Shareholders and potential investors are advised to take note of these important dates and announcements. The dividend payment, once approved at the Annual General Meeting, will be processed for eligible shareholders as per the record date mentioned above.