NDR Auto Reports Strong Q2 Results and Unveils Strategic Manufacturing Expansions
NDR Auto Components Limited reported robust Q2 results with a 24.37% increase in consolidated net profit to ₹148.00 crore. The company's EBITDA rose by 26.80% to ₹246.00 crore, with an improved EBITDA margin of 12.31%. Revenue from operations stood at ₹1,999.56 crore. The board approved two major manufacturing projects: a seat belt reminder system facility in Gujarat with a 1.5 million units annual capacity, and a seating latches production line in Gurugram with a 3 million units capacity. Both projects are set to be operational by January 2027. Additionally, the company will invest ₹3.00 crore in its wholly-owned subsidiary for a seat insert fabric production project.

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NDR Auto Components Limited has reported robust financial results for the second quarter, alongside announcing significant expansion plans that signal the company's commitment to growth and innovation in the auto components sector.
Financial Performance
NDR Auto demonstrated strong financial performance in Q2, with consolidated net profit rising to ₹148.00 crore, up from ₹119.00 crore in the same quarter last year. This represents a year-over-year increase of about 24.37%. The company's EBITDA also saw a substantial improvement, reaching ₹246.00 crore compared to ₹194.00 crore in the previous year, marking a growth of approximately 26.80%.
Notably, the EBITDA margin expanded to 12.31% from 11.13% year-over-year, indicating enhanced operational efficiency and profitability.
Revenue and Profitability
The company's revenue from operations for Q2 stood at ₹1,999.56 crore, showcasing a solid performance in the auto components market. The net profit margin for the quarter was 6.95%, reflecting the company's ability to maintain profitability amidst market challenges.
Strategic Expansion Initiatives
In a move to strengthen its market position and expand its product portfolio, NDR Auto's board has approved two significant manufacturing projects:
Seat Belt Reminder System Production: The company plans to set up a manufacturing facility for seat belt reminder systems at its Gujarat plant. This project, in collaboration with Fujikura Ltd., will have a proposed capacity of 1.5 million units per annum and requires an investment of approximately ₹7.43 crore. The project is expected to be operational by January 2027.
Seating Latches Manufacturing: NDR Auto will establish a production line for seating latches at its Gurugram facility, partnering with Fisher Dynamics Corporation. This initiative has a planned capacity of 3 million units per annum and will involve an investment of about ₹17.43 crore. The project is also slated for completion by January 2027.
Investment in Subsidiary
The board has also approved an investment of ₹3.00 crore in NDR Auto Components Safety Systems Private Limited, a wholly-owned subsidiary, through a rights issue. This investment aims to support the subsidiary's project for seat insert fabric production.
Market Outlook
These strategic moves indicate NDR Auto's focus on diversifying its product range and enhancing its technological capabilities in the auto components sector. The collaborations with international firms like Fujikura Ltd. and Fisher Dynamics Corporation suggest a push towards adopting advanced technologies and expanding the company's global footprint.
As the automotive industry continues to evolve with a focus on safety and comfort features, NDR Auto's investments in seat belt reminder systems and seating latches position it well to capitalize on these trends.
Conclusion
NDR Auto Components Limited's strong Q2 performance, coupled with its strategic expansion plans, paints a picture of a company poised for growth. The focus on safety-related components aligns well with the increasing emphasis on vehicle safety in the global automotive market. As these new projects come online over the next few years, they may significantly contribute to the company's revenue and market position in the auto components sector.
Historical Stock Returns for NDR Auto Components
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.21% | +4.23% | -4.87% | +51.70% | +28.10% | +2,743.30% |
































