AXLES INDIA LIMITED FINANCIAL RESULTS ANALYSIS (FY22–FY25)

1. BUSINESS OVERVIEW Axles India Limited, a joint venture between Wheels India( 9.51% ), Sundaram Finance (38.32% ), and Dana Holding Corporation (USA)(48.33%), is a prominent manufacturer of axle housings for medium and heavy commercial vehicles (M&HCVs). With two manufacturing facilities in Sriperumbudur and Cheyyar (Tamil Nadu), the company has a production capacity of 280,000 axle housings annually. Serving leading OEMs like Tata Motors, Ashok Leyland, Daimler India, and export clients including Dana USA and Volvo Asia, Axles India stands as a vital supplier in the commercial vehicle component space. 2. FINANCIAL PERFORMANCE Metric FY22 FY23 FY24 FY25 Revenue (₹ Cr) 569 746 854 841 EBITDA (₹ Cr) 54 85 129 101 EBITDA Margin (%) 9.49 11.39 15.11 12.01 PAT (₹ Cr) 34 53 86 69 PAT Margin (%) 5.98 7.1 10.07 8.2 EPS (₹) 13.34 20.79 33.74 27.07 Gross Margin (%) 36.38 35.92 32.55 43.04 3. BALANCE SHEET STRENGTH Metric FY22 FY23 FY24 FY25 Total Assets (₹ Cr) 371 416 518 519 Trade Receivables (₹ Cr) 174 215 202 191 Inventory (₹ Cr) 104 123 210 179 Borrowings (₹ Cr) 58 54 82 50 Reserves (₹ Cr) 150 186 249 282 4. CASH FLOW ANALYSIS Metric FY22 FY23 FY24 FY25 Cash Flow from Ops (₹ Cr) 13 18 32 118 Cash Flow from Investing -10 -14 -31 -33 Cash Flow from Financing -19 -15 3 -4 Net Cash Generated (₹ Cr) -16 -11 4 19 5. RATIO ANALYSIS (FY22–FY25) Ratio FY22 FY23 FY24 FY25 Debt to Equity 0.27 0.23 0.25 0.16 Return on Equity (%) 17.2 21.0 28.5 22.44 Return on Capital Employed (ROCE %) 14.5 18.1 24.8 20.2 EPS (₹) 13.34 20.79 33.74 27.07 Current Ratio 2.14 2.20 2.11 2.28 6. VALUATION ANALYSIS(FY25) Metric Value Market Cap (₹ Cr) 1,912 Share Price (₹) 750 Book Value (₹) 124.55 P/E Ratio 27.71 P/B Ratio 6.02 EV/EBITDA  18.9 Insights: Strong Earnings Base: EPS has grown consistently over the years, peaking in FY24 at ₹33.74. Even with a slight drop to ₹27.07 in FY25, it reflects a resilient earnings base. Efficient Capital Utilization: ROE and ROCE show the company is efficiently using shareholders’ capital and total capital employed, with ROE peaking at 28.5% in FY24. Deleveraging: The debt-to-equity ratio dropped from 0.27 in FY22 to just 0.16 in FY25, indicating a strong balance sheet and reduced interest burden. Strong Liquidity Position: The current ratio has remained above 2x across all years, suggesting sufficient liquidity to meet short-term obligations. Valuation Multiples: With a P/E of 27.71 and P/B of 6.02, the stock commands premium valuations, likely reflecting investor confidence in future growth and stability. Stable Gross Margins: Despite fluctuations in revenue, gross margins have held strong, reaching 43% in FY25 — a sign of improving cost efficiencies or favorable product mix. CONCLUSIONAxles India Limited continues to deliver robust performance, backed by a solid business model and strategic joint ventures. With strong profitability, healthy balance sheet metrics, and consistent cash flows, the company remains well-positioned in the commercial vehicle components space. Its valuations reflect investor optimism, supported by low debt, strong margins, and a diversified client base in both domestic and export markets.   DISCLAIMERUnlistedZone is not a SEBI-registered Research Analyst or Investment Advisor.All information shared on our platform—including articles, posts, investment insights, and price trends—is solely for educational and informational purposes. We do not provide any buy/sell recommendations or financial advice.Investors are advised to do their own due diligence or consult a SEBI-registered advisor before making any investment decisions. Investments in unlisted and pre-IPO shares are subject to market risks, including liquidity risk and price volatility.UnlistedZone does not guarantee any returns and shall not be held liable for any losses incurred as a result of investment decisions taken based on the information provided.