Atul Auto Limited

Stock Opportunities
681

Here are my notes from their AR22

  • Growth was impacted due to lower availability of retail finance, higher contribution of resale vehicles and cost increase due to transition from BS4 to BS6
  • Atul’s market share decreased to 5.51% in FY22 (vs 6.99% in FY21). This was due to sudden change in industry product mix, where share of CNG 3Ws in domestic industry raised 51% vs a decrease of 29% in diesel 3Ws
  • Developed a unique range of 24 Business Application Vehicles customized to demands of retail and institutional consumers
  • EV foray:
    o Company has a tested and homologated model in 3W EV L5 category with fixed Lithium-ion Battery Packs, which will be launched in FY23
    o Signed MOU with a renowned European brand that will provide technological support for development of own BMS on turnkey basis.
    o Tied up with Honda to produce Swappable Batteries in the near future
  • Have the entire range of vehicle offerings (CNG/LPG/petrol/diesel/electric)
  • Exports grew from 13.33 cr. in FY21 to 25.62 cr. in FY22
  • Average sales realization per vehicle decreased by 2.88% to 1,58,789 due to change in product mix
  • KAFL:
    o Acquired remainder 70% stake for 44.57 cr. and became 100% owned by Atul auto
    o Company has raised 29.54 cr. by issuance of 1,82,79,400, 0.001% Participative Preference Shares
    o Net worth: 100.42 cr.
    o Primarily finances 3-wheelers of Atul Auto and 2-wheelers in regions where other financers are not easily available
    o Disbursed loan of 79.55 cr. (vs 64.47 cr. in FY21). AUM grew by 12.96% to 172.75 cr. (vs 152.93 cr. in FY21). Revenue was 30.59 cr. (vs 33.80 cr. in FY21). PBT was 2.19 cr. (vs 7.01 cr. in FY21). PAT was 1.61 cr. (vs 5.29 cr. in FY21)
    o Has presence in 47 locations in 12 states
  • Atul Green Automotive Private Limited: Sells spare parts of Atul vehicles to certain international markets. Had revenues of 2.08 cr. with PAT of 1.54 lakhs
  • Atul Greentech Private Limited: Invested 5 cr. to taking share capital to 10 cr. from 5 cr. in FY21. In May 2022, subsidiary raised 15 cr. by allotment of 25 lakh shares at a price of 60/- on private basis resulting in Atul auto’s shareholding falling to 80% (valuation of 75 cr.)
  • Term loan: Withdrew 75 cr. from the sanctioned loan of 90 cr. from EXIM Bank for part financing green field project at Bhayla (Ahmedabad)
  • Average increase in salaries of employees other than managerial personnel was 6.47% and for managerial personnel was 15.95%
  • Executive Directors forgave ~40% of remuneration
  • Contractual employee: 341 (vs 335 in FY21), Permanent: 700 (vs 809 in FY21)
  • R&D: 94.68 lakhs (vs 1.86 cr. in FY21)

Below are the detailed business metrics since FY07

In crores FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Net sales 121.77 80.39 116.81 119.85 201.59 298.29 362.86 429.25 490.07 528.00 472.19 551.22 661.35 617.51 290.27 286.34
Raw material cost 91.60 156.20 241.86 283.15 330.39 372.20 384.87 346.15 402.20 494.97 443.13 239.19 240.39
Employee cost 7.03 10.54 16.48 21.01 27.36 30.30 34.91 39.04 40.13 47.68 54.55 37.74 39.66
EBITDA 8.75 6.86 5.69 14.20 20.06 28.14 42.06 48.31 57.61 71.52 59.86 75.12 88.35 74.46 -5.76 -19.16
Depreciation 1.95 2.29 2.46 3.87 4.25 4.26 4.44 5.21 5.60 5.29 5.28 5.26 5.54 6.40 6.56 9.33
Exceptional items - - 0.23 - - 0.13 - - 1.65 - - - - - - -
Interest 2.78 1.71 0.76 0.40 0.35 0.59 0.78 0.58 0.42 0.86 1.03 0.88 4.00
PBT 7.15 14.06 23.24 37.22 42.75 59.25 71.53 56.52 69.43 81.95 67.03 -13.20 -32.49
Tax 2.61 4.64 8.40 11.30 12.95 19.20 24.35 19.20 23.24 28.83 14.64 -3.00 -7.62
Cash tax 1.22 4.94 6.96 12.19 13.37 16.47 25.36 19.53 23.20 27.10 19.40 0.29 0.46
PAT 3.15 1.27 0.46 4.54 9.42 15.59 25.92 29.79 40.57 47.40 37.32 46.19 53.12 52.39 -10.20 -24.87
Dividend 0.54 0.29 0.29 1.17 2.34 3.66 6.58 8.23 10.98 11.51 11.51 9.33 11.52 6.03 - -
Dividend tax 0.38 0.59 1.12 1.40 2.22 2.35 2.35 1.90 2.37 1.24 - -
Equity share capital 5.58 5.58 6.08 6.08 6.08 7.55 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97
Reserves 20.52 21.08 24.39 27.56 34.27 48.54 63.10 83.27 109.86 143.40 169.50 208.42 247.63 292.28 282.26 257.82
Net worth 26.10 26.67 30.48 33.65 40.36 56.09 74.07 94.47 121.07 154.60 180.70 219.39 258.60 303.25 293.23 268.79
Debt - - - 15.00 80.38
Gross fixed asset 40.51 50.23 57.34 59.28 63.30 61.13 68.63 83.45 146.84 149.64 152.25 272.38
Net fixed asset 32.32 39.80 44.78 42.82 42.65 41.54 48.07 53.33 93.36 92.10 88.77 198.41
Market cap 41.31 28.10 12.84 26.19 67.88 83.93 162.38 394.59 1’221.25 1’139.50 1’024.64 968.13 745.96 305.78 392.23 354.27
CAPEX 4.03 8.47 9.60 10.57 33.59 10.79 7.91 6.85 69.83 143.47 39.57 10.51
Outstanding shares 5’851’520.00 7’314’400.00 10’971’600.00 10’971’600.00 21’943’200.00 21’943’200.00 21’943’200.00 21’943’200.00 21’943’200.00 21’943’200.00 21’943’200.00 21’943’200.00
Low price 42.55 86.00 89.95 143.15 328.35 330.00 391.00 389.30 266.95 116.80 130.85 146.50
High price 159.90 155.00 226.90 379.75 834.80 635.00 567.95 512.00 466.75 372.90 203.40 270.00
Total shareholders 1’537.00 1’905.00 2’833.00 3’555.00 14’764.00 19’007.00 21’653.00 21’573.00 21’108.00 21’342.00 35’247.00 43’525.00
Disputed taxes 1.06 1.06 1.52 1.56 1.80 2.87 3.30 2.44 1.86 1.37 1.36 0.78
CFO 9.58 16.73 18.79 40.66 30.71 35.79 10.86 72.30 26.11 34.55 57.40 52.09 -18.98
Director remuneration 1.79 1.41 1.74 2.17 2.51 2.88 2.95 3.21 3.76 1.98 2.30
Auditor remuneration 0.07 0.09 0.10 0.12 0.12 0.17 0.15 0.18 0.06 0.07 0.07 0.06 0.10
Employees 951.00 919.00 808.00 868.00 927.00 993.00 809.00 700.00
Median employee salary 116’808.00 142’836.00 166’416.00 179’712.00 192’072.00 202’680.00 171’089.00 204’057.00

Disclosure: Invested (position size here, no transactions in last-30 days)

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