Ucal Limited Reports Mixed Q1 Results: Revenue Dips, Profitability Improves
UCAL, an automotive components manufacturer, released its Q1 unaudited financial results. Standalone revenue decreased to Rs. 13,960.10 lakhs from Rs. 15,013.76 lakhs in the previous quarter. However, profitability improved with PBT at Rs. 146.29 lakhs and EBITDA margin rising to 8.86%. Consolidated results showed revenue decline to Rs. 19,452.27 lakhs, but losses narrowed significantly. The company's EBITDA margin improved from -0.41% to 6.64%. UCAL awaits RBI approval for write-offs totaling Rs. 15,191.85 lakhs from its US subsidiary.
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UCAL , a prominent player in the automotive components sector, has released its unaudited financial results for the first quarter, revealing a mixed performance with declining revenue but improved profitability.
Standalone Performance
On a standalone basis, UCAL reported a decrease in revenue from operations, which stood at Rs. 13,960.10 lakhs, down from Rs. 15,013.76 lakhs in the previous quarter. However, the company managed to improve its profitability, with profit before tax (PBT) reaching Rs. 146.29 lakhs, compared to Rs. 194.24 lakhs in the preceding quarter.
The company's EBITDA margin showed improvement, rising to 8.86% from 8.28% in the previous quarter, indicating enhanced operational efficiency. Earnings per share (EPS) also saw a positive shift, moving to Rs. 0.15 from Rs. -0.63 in the last quarter.
Consolidated Results
UCAL's consolidated financial results painted a similar picture:
| Metric | Current Quarter | Previous Quarter |
|---|---|---|
| Revenue (Rs. lakhs) | 19,452.27 | 19,889.60 |
| Loss Before Tax (Rs. lakhs) | 475.87 | 1,724.20 |
| EBITDA Margin | 6.64% | -0.41% |
| EPS (Rs.) | -2.72 | -9.31 |
The consolidated results show a decline in revenue but a significant narrowing of losses and improvement in EBITDA margin, indicating enhanced overall operational performance.
Financial Position
UCAL's balance sheet remains stable with a paid-up equity share capital of Rs. 2,211.36 lakhs. The company is currently awaiting RBI approval for write-offs totaling Rs. 15,191.85 lakhs from its US subsidiary, UCAL Holdings Inc. This pending approval relates to trade receivables and loan receivables written off in the 2017-18 financial year.
Business Focus
The company continues to operate solely in the automotive components segment, focusing on streamlining operations and improving profitability across its group companies.
Conclusion
While UCAL faced revenue challenges in the most recent quarter, the improved EBITDA margins and reduced losses at the consolidated level suggest that the company's efforts to enhance operational efficiency are yielding results. As UCAL navigates through the dynamic automotive sector, investors and stakeholders will be keenly watching how the company builds on its improved profitability metrics while addressing the revenue challenges in the coming quarters.
Historical Stock Returns for UCAL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.46% | +4.31% | +4.94% | +10.41% | -29.14% | -6.64% |
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