Shares of Endurance Technologies fell 8% to Rs 1,423 in intraday trade on Wednesday after the company’s profit after tax (PAT) halved to Rs 94.6 crore in Q3FY22 due to weak operating results . The auto parts and equipment company posted a PAT of Rs 1.9 crore in the same period last year (Q3 FY21).
Consolidated operating income fell 7% year-on-year to Rs 1,889 crore compared to Rs 2,041 crore in the previous quarter. Earnings before interest, tax, depreciation and amortization (Ebitda) fell 41% year-on-year to Rs 2,107 crore, while profit margins contracted by 640 basis points to 11.1% in the quarter.
Management said the market this year has been dampened by headwinds such as weak rural demand and rising cost of ownership. “In the EU (including the UK), new car registrations fell 23.4% year-on-year in the third quarter. The European auto market is deeply affected by semiconductor shortages and soaring energy prices,” management said.
Endurance is one of the leading auto parts manufacturers with a wide range of technology-enhanced products in India and Europe (Italy and Germany). In India, the company primarily serves two- and three-wheel OEM5 products including aluminum castings, suspension, transmission and braking systems. In Europe, the company mainly serves four-wheeled vehicle OEM5, mainly supplying aluminum casting products.
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