Amtek Auto is an integrated component manufacturer with automotive operations. On the financial front, Amtek Auto posted 23.25 per cent decrease in its revenue to ₹424.64 crore in Q1FY18, as against revenue of ₹553.26 in Q1FY17. The company posted an operating profit of ₹22.20 crore in Q1FY18, down by 4.45 per cent on a year-onyear basis. Further, the company reported a massive net loss of ₹889.58 crore in the first quarter of FY18. The company had posted a net loss of ₹319.68 crore in the first quarter of FY17 as well. On an annual basis, the company’s revenue increased by 29.55 per cent to ₹1,950 crore in FY17 from ₹6.65 crore in the previous fiscal. The company’s operating profit stood at
₹395.77 crore in FY17, up by 33.53 per cent from ₹296.40 crore in the previous fiscal. In line with the quarterly results, the company posted a massive loss of ₹1,623.99 crore in FY17. The net loss of the company stood at ₹738.36 for the financial year 2016. Amtek Auto is immensely debt-laden and, moreover, the National Company Law Tribunal has approved the decision of beginning insolvency proceedings on the company by a consortium of banks. The future of the company looks uncertain with a consistently dampened performance in the stock market as well. We recommend our investors to Exit the stock.
I have 500 shares of Amtek Auto bought at ₹40, but now the price is down. Need your suggestion - Shikha Soni