Jtekt India, a leading manufacturer of automotive components, has reported a mixed set of financial results for the first quarter of the fiscal year. The company saw a modest increase in revenue but experienced a decline in profitability, all while successfully completing a significant rights issue.

Q1 Financial Performance

For the quarter ended June 30, JTEKT India reported:

The company's revenue showed a slight improvement, growing by 2.37% year-over-year to ₹566.02 crore. However, profitability metrics saw a decline, with net profit decreasing by 27.28% to ₹10.82 crore. EBITDA also fell by 17.38% to ₹30.90 crore, resulting in an EBITDA margin compression of 131 basis points to 5.45%.

Rights Issue Completion

In a significant development, JTEKT India successfully completed its rights issue, which was open from August 4 to August 12. The company's Rights Issue Committee approved the allotment of 2,31,16,407 fully paid-up equity shares with a face value of ₹1 each. These shares were issued at a price of ₹108.10 per share, including a premium of ₹107.10.

The rights issue raised an aggregate amount of ₹249.89 crore, strengthening the company's capital base. As a result of this allotment, JTEKT India's paid-up equity share capital has increased from ₹25,42,80,483 to ₹27,73,96,890.

Outlook

The mixed Q1 results, showing revenue growth but profit decline, indicate that JTEKT India may be facing challenges in maintaining profitability, possibly due to increased costs or competitive pressures in the automotive components sector. The successful rights issue, however, provides the company with additional capital, which could be utilized to navigate these challenges and pursue growth opportunities in the coming quarters.

Investors and analysts will likely be watching closely to see how JTEKT India leverages its newly raised capital to improve its financial performance and market position in the automotive components industry.

Jtekt India Limited, a leading manufacturer of automotive steering systems and driveline components, has announced a revision in the remuneration package for its Wholetime Director, Yosuke Fujiwara. The company has issued an addendum to its 41st Annual General Meeting (AGM) notice, scheduled for August 28, 2025, to include this update.

Revised Remuneration Package

The Board of Directors, in its meeting held on July 15, 2025, approved the revision of Mr. Fujiwara's remuneration package, effective from July 1, 2025, until the end of his tenure on January 31, 2027. The revised package includes several new components that are typically extended to senior expatriate officials:

1. Company Car for Family Use: A chauffeur-driven car will be provided for the use of Mr. Fujiwara's family in India.
2. School Fee Reimbursement: Actual school fees for his dependent children in India will be reimbursed, subject to submission of original bills and supporting documentation.
3. Shifting/Relocation Reimbursement: Upon the expiry of his term and permanent return to his home country, the company will reimburse actual expenses incurred towards shifting and transportation of household goods and personal belongings from India to Japan.

Existing Remuneration Components

The revision does not alter Mr. Fujiwara's existing salary and housing components, which remain as follows:

Approval Process

The revised remuneration package requires shareholder approval through a special resolution at the upcoming AGM. The company has provided a detailed explanatory statement in the addendum, outlining the reasons for the revision and its compliance with the Companies Act, 2013.

About Yosuke Fujiwara

Mr. Fujiwara, a 50-year-old Japanese national, has over 25 years of experience in the automotive industry. He was initially appointed as Wholetime Director of JTEKT India Limited on February 1, 2025, for a two-year term. Prior to this, he served as the Managing Director of JTEKT Bearings India Private Limited.

Company Background

JTEKT India Limited is a key player in the Indian Auto Ancillary Components Manufacturing Industry. The company produces automotive steering systems, steering gear assemblies, and driveline components for major customers including Maruti Suzuki, Toyota Kirloskar, and Mahindra & Mahindra. With a technical collaboration with JTEKT Corporation, Japan, the company maintains a technological edge in the steering systems market.

This revision in the remuneration package for a key executive underscores JTEKT India's commitment to retaining top talent and aligning its compensation practices with industry standards for expatriate officials. Shareholders will have the opportunity to vote on this resolution at the upcoming AGM, reflecting the company's adherence to corporate governance norms and transparency in executive compensation matters.