Domestic three wheeler manufacturer Atul Auto reported an increase of 23 percent in its net profit, in September quarter. The company said that the net profit, which stands at Rs. 6.21 crore accounted to the increased penetration of dealership network. It also said that the company plans to increase the capacity at the Rajkot plant to twice the present numbers.
Atul Auto Ltd. Director Vijay Kedia said, "Our current capacity stands at 24,000 units per annum which we will scale up to 48,000 units by year-end or January next year." He further said, "We have seen uptick in sales since October and expect good second half as we see revival in demand."
While the auto industry in the country, which has suffered this year owing to hike in fuel prices, expects a growth of 3-4 per cent, Atul Auto is confident of achieving 20 per cent growth this year. The company had posted a net profit of Rs. 5.06 crore in the corresponding quarter last financial year. Kedia said that the sales this quarter stood at Rs. 86 crore, while this figure stood at Rs. 77 crore in the first quarter of FY 12. The company sold 7,578 units in July-September period this year as against 6,795 vehicles during the same period last year.
"Our performance has been quite satisfying more so in this tough quarter. The current economic situation is quite challenging. We plan to focus on new product introduction, process innovation and cost control that will help in rising to the challenges adequately," he said.
Kedia added that the company aims to achieve a target of Rs. 1000 crore turnover by financial year 2015-16 from Rs. 300 crore in the last financial year.
Atul Auto also expects to capture a market share of up to 6 per cent this year, which currently stands at 5 per cent, Kedia said, adding, "We have increased the number of dealerships to 138 by September from 115 last fiscal and we are hopeful of leveraging this enhanced network to ramp our sales."
Atul Auto, which already exports its vehicles to Bangladesh, Tanzania and Kenya, will soon start exporting its vehicles to Sri Lanka as well, Kedia said.
