Atul Auto Limited , a leading manufacturer of commercial three-wheelers, has reported strong financial results for the second quarter, leading to a 14% surge in its share price.

Key Financial Highlights

• Consolidated Net Profit: Atul Auto's consolidated net profit for Q2 rose to ₹9.20 crore, marking a 70% increase from ₹5.40 crore in the same quarter last year.
• Revenue: Total revenue from operations grew 10% to ₹200.00 crore, up from ₹182.00 crore in the previous year.
• Sequential Growth: On a quarter-over-quarter basis, profit after tax increased by 210% from ₹2.90 crore, while revenue jumped 31% from ₹153.00 crore.
• Sales Volume: The company sold 9,248 units during the quarter, up from 6,929 units in the previous quarter and 8,850 units in the year-ago period.

Financial Performance Table

Market Position and Outlook

Atul Auto's performance in Q2 demonstrates its market presence in the three-wheeler segment. The improvement in consolidated profit and sales volume suggests strengths in the company's operations and market demand.

Investor Interest

Investor Vijay Kedia holds a 21% stake in Atul Auto, valued at ₹286.00 crore, making it his largest portfolio holding.

Manufacturing Capacity

The company operates manufacturing facilities in Gujarat with an annual production capacity of 1,20,000 vehicles.

Stock Performance

Despite the recent 14% surge following the Q2 results, Atul Auto's shares remain below their 50-day and 200-day moving averages. The stock has declined 17% over the past year.

Note: All financial figures are in Indian Rupees (INR).

Atul Auto Limited , a prominent player in the automotive sector, has successfully resolved a trademark infringement lawsuit with oil giant Exxon Mobil Corporation through mediation at the Delhi High Court. The settlement marks a significant development for the company and its subsidiary, Atul Greentech Private Limited (AGPL).

Key Settlement Terms

The resolution of the dispute involves several key terms:

1. Trademark Usage: AGPL has agreed to cease using the trademarks 'MOBILI' and 'MOBILI SWAP' for its electric vehicles.
2. Trademark Application Withdrawal: The company will withdraw its trademark application for 'Mobili' in class 12.
3. Branding Materials: Atul Auto and AGPL will destroy all stickers, labels, and branding materials bearing the disputed marks.
4. Financial Settlement: AGPL will pay Exxon Mobil a one-time settlement amount of Rs 10.00 lakh for full closure of the dispute.

Impact on Business Operations

Atul Auto's management has stated that they do not anticipate any major financial impact beyond the settlement expense. The company has taken proactive steps to mitigate potential disruptions:

• New Trademarks: AGPL has already adopted new trademarks: 'ATUL RIK EV', 'ATUL RIK TWIN', and 'ATUL RIK SWAP'.
• Regulatory Compliance: Necessary amendments have been made to the ARAI Approval Certificate and Vahan portal regarding the brand name change.

Legal Proceedings

The lawsuit was disposed of by the Delhi High Court following the agreement reached between both parties through the Samadhan (Delhi High Court Mediation and Conciliation Centre).

Company's Statement

In its filing to the stock exchanges, Atul Auto Limited stated, "The management do not see any major impact on financial position of the listed entity except expense/ loss of settlement amount as mentioned above."

The resolution of this trademark dispute allows Atul Auto and its subsidiary to move forward with their business operations, particularly in the electric vehicle segment, under their newly adopted trademarks. This settlement demonstrates the company's commitment to resolving legal challenges and maintaining focus on its core business activities.

Investors and stakeholders will likely view this development positively, as it removes a potential legal hurdle and allows the company to continue its operations without further trademark-related complications.