Yuken India Reports Q1 Profit Dip Amid Revenue Decline
Yuken India Limited's Q1 consolidated net profit decreased by 22.64% to ₹41.00 crore from ₹53.00 crore year-over-year. Revenue fell 5.13% to ₹1,045.53 crore. EBITDA declined slightly to ₹125.00 crore, with margins remaining stable at 11.95%. The hydraulic segment generated ₹894.43 crore in revenue, while the foundry segment contributed ₹223.98 crore. The company's board approved the re-appointment of Ms. Indra Prem Menon as a Non-Executive Independent Women Director for a second 5-year term, subject to shareholder approval. Yuken India also issued 584,000 equity shares at a premium to Yuken Kogyo Company Limited.

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Yuken India Limited , a leading manufacturer of oil hydraulic equipment, has reported a decline in its financial performance for the first quarter. The company's consolidated net profit fell to ₹41.00 crore, down from ₹53.00 crore in the same period last year, marking a decrease of approximately 22.64%.
Revenue and Profitability
The company's revenue also saw a decrease, dropping to ₹1,045.53 crore from ₹1,102.02 crore year-over-year, representing a decline of about 5.13%. This reduction in both top-line and bottom-line figures indicates challenging market conditions for Yuken India during the quarter.
EBITDA Performance
Despite the overall decline, Yuken India managed to maintain relatively stable EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins. The company's EBITDA fell slightly to ₹125.00 crore from ₹132.00 crore in the previous year. However, the EBITDA margin remained almost unchanged at 11.95% compared to 11.98% in the same quarter last year, suggesting that the company has been able to manage its operational efficiency despite the revenue challenges.
Segment Performance
Yuken India operates in two primary business segments: hydraulics and foundry. The hydraulic business, which forms the core of the company's operations, generated revenue of ₹894.43 crore for the quarter. The foundry business contributed ₹223.98 crore to the total revenue.
Financial Position
Yuken India's paid-up equity share capital stood at ₹130.00 crore, consisting of 13,000,000 shares with a face value of ₹10 each. The company's other equity, as reported in its previous financial year, was ₹2,881.52 crore.
Corporate Developments
In a separate announcement, Yuken India's Board of Directors approved the re-appointment of Ms. Indra Prem Menon as a Non-Executive Independent Women Director for a second term of 5 years. This appointment is subject to shareholder approval at the upcoming Annual General Meeting.
Additionally, the company has recently issued 584,000 fully paid-up equity shares at a premium of ₹1,016.00 per share to Yuken Kogyo Company Limited, the promoter of the company.
Outlook
While Yuken India faces challenges in the current economic environment, as evidenced by the decline in revenue and profit, the company's ability to maintain its EBITDA margin suggests resilience in its operational efficiency. The company's focus on both hydraulic and foundry businesses, along with strategic corporate actions, may help in navigating the current market conditions.
Investors and stakeholders will be watching closely to see how Yuken India adapts its strategies to improve performance in the coming quarters, particularly in light of the ongoing economic uncertainties affecting the manufacturing sector.
Historical Stock Returns for Yuken
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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+0.18% | +0.34% | -0.36% | +30.49% | -22.66% | +62.77% |